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Microsoft Still Making More $$$ Than Apple

By - Source: Tom's Hardware US | B 54 comments

Yes, Microsoft is still making more money than Apple.

Apple on Tuesday reported earnings of $15.7 billion and a net quarterly profit of $3.25 billion or $3.51 per diluted share. With successful launches of both the iPad and iPhone 4, Apple was pretty pleased with its quarterly report for the third quarter of its fiscal year, but was it enough to beat long-time rival, Microsoft?

In the run up to Microsoft's earnings call, which took place yesterday, there was speculation that this could be the first time Apple actually made more money than Microsoft. However, the Redmond-based company has since revealed revenues of $16.04 billion – which is ahead of estimates from Wall Street – and a net profit of $4.52 billion (a 48 percent increase over last year), or $0.51 per share per diluted share.

Microsoft also revealed that it has sold 175 million Windows 7 licenses and 1.5 million Xboxes. The company reported an Xbox Live subscriber base of more than 25 million.

It's certainly a different picture to the one painted last year, when Microsoft reported its first annual sales decline in company history. However, not every department is making boatloads of money. FastCompany reports that "Online services," (Bing, Bing Maps, etc.) was the only major sector of Microsoft to lose money, but things aren't all bad there, either as Microsoft reports Bing growth has been up for 13 consecutive months.

Because this was Microsoft's fourth fiscal year quarter, Redmond also released numbers for its fiscal year ended June 30, 2010. For FY2010, the company reported revenue of $62.48 billion, a 7 percent increase from the prior year. Operating income, net income and diluted earnings per share for the year were $24.10 billion, $18.76 billion and $2.10, which represented increases of 18 percent, 29 percent and 30 percent, respectively.

Read Microsoft's official statement here.

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Top Comments
  • 25 Hide
    atdhe , July 23, 2010 11:29 PM
    Win 7 has really saved MS here, otherwise Apple would have easily overtaken MS, but that become reality in the near future considering how things are going with Apple... their fan base is just crazy...
  • 25 Hide
    scione , July 23, 2010 11:30 PM
    I wonder how much google made this year...?
  • 16 Hide
    fayzaan , July 23, 2010 11:28 PM
    Respect!!! W00t Windows 7 is awesome, something that MS shoulda done in the first place for Vista. What I dont like is the fact that those who purchased vista got no upgrade or special deal for 7 :(  I hate vista, slow and laggy n stuff. If MS offers me a nice cheap upgrade from vista to 7 ill take it. And I bought Vista like 8/9 months before 7's release
Other Comments
  • 3 Hide
    plznote , July 23, 2010 11:28 PM
    Oh, well i hate both companies
  • 16 Hide
    fayzaan , July 23, 2010 11:28 PM
    Respect!!! W00t Windows 7 is awesome, something that MS shoulda done in the first place for Vista. What I dont like is the fact that those who purchased vista got no upgrade or special deal for 7 :(  I hate vista, slow and laggy n stuff. If MS offers me a nice cheap upgrade from vista to 7 ill take it. And I bought Vista like 8/9 months before 7's release
  • 25 Hide
    atdhe , July 23, 2010 11:29 PM
    Win 7 has really saved MS here, otherwise Apple would have easily overtaken MS, but that become reality in the near future considering how things are going with Apple... their fan base is just crazy...
  • 25 Hide
    scione , July 23, 2010 11:30 PM
    I wonder how much google made this year...?
  • 1 Hide
    Ragnar-Kon , July 24, 2010 12:00 AM
    Both tech companies are pioneers in this business, and so I am glad to see both of them do well.

    I am also glad to see Apple catch up a little bit, not because I like Apple products, but because both companies will push harder to create better products when they feel threatened by one another. Which in the end can only be better for the consumer.
  • 14 Hide
    tipoo , July 24, 2010 12:12 AM
    Don't go spend it all on some fancy record player, ya hear?
  • 9 Hide
    chickenhoagie , July 24, 2010 12:14 AM
    i really feel threatened by jobs' powers..i hope MS doesnt let him get ahead, ever.
  • 0 Hide
    tokenz , July 24, 2010 12:18 AM
    We will see what apples next quarter is like when they have to factor in 3million cases that they have to give away.
  • 16 Hide
    tipoo , July 24, 2010 12:23 AM
    tokenzWe will see what apples next quarter is like when they have to factor in 3million cases that they have to give away.


    I'm sure the profit on each iPhone 4 is more than the 10 cents it costs to make a rubber case.
  • -6 Hide
    Vestin , July 24, 2010 12:28 AM
    "Microsoft is still making more money than Apple."
    Well, duh... For the same reasons that soccer is more popular than football.
  • 2 Hide
    Strider-Hiryu_79 , July 24, 2010 12:31 AM
    Jane that pic should be used in the next TH's "Insert Caption Here" contest. Whatever happened to that Jane/TH Staff?
  • 0 Hide
    gaevs , July 24, 2010 12:51 AM
    Strider-Hiryu_79Jane that pic should be used in the next TH's "Insert Caption Here" contest. Whatever happened to that Jane/TH Staff?


    Yeah, what happened to that?, it was really funny...
  • -5 Hide
    house70 , July 24, 2010 12:55 AM
    OMG, Jobs will eat his liver out... maybe that's what happened to his first one.
    :) 
  • -6 Hide
    mrmez , July 24, 2010 1:32 AM
    So they are still ~ 10x bigger in computers.

    Why is this news?
  • 0 Hide
    Strider-Hiryu_79 , July 24, 2010 1:32 AM
    gaevsYeah, what happened to that?, it was really funny...


    The pic above to me looks like he's saying "BOO-YAH!" :D 
  • -5 Hide
    redgarl , July 24, 2010 1:51 AM
    It's time governments begin to use freeware. Unbutu, Open Office, Gimp and some other programs. A workstation has no real benefit of using microsoft product over a Linux platform.
  • 4 Hide
    Godfail , July 24, 2010 4:24 AM
    redgarlIt's time governments begin to use freeware. Unbutu, Open Office, Gimp and some other programs. A workstation has no real benefit of using microsoft product over a Linux platform.


    Really, no real benefit of using Windows in an environment with AD, Exchange, Sharepoint, OCS, SCCM, etc. etc.? Yes, our government should hire a ton of developers to develop a version of Linux that acts just like Windows in a Windows environment...or just use Windows...which is what they should and will do.

    There's definitely a place for Linux, but it's not in replacing desktops in an environment like that.

  • 3 Hide
    shloader , July 24, 2010 4:24 AM
    Ya know... this is kinda reassuring. Seriously... like picking the lesser of two evils. MS is far less evil what with Gates and Allan throwing cash to charities like the shit grows wild.

    And did I just see someone running with rampant misspellings and bad grammar call Jane an idiot? Nah... really?
  • -1 Hide
    Godfail , July 24, 2010 4:31 AM
    ShloaderYa know... this is kinda reassuring. Seriously... like picking the lesser of two evils. MS is far less evil what with Gates and Allan throwing cash to charities like the shit grows wild.And did I just see someone running with rampant misspellings and bad grammar call Jane an idiot? Nah... really?


    Gates has virtually nothing to do with MS anymore, and how that charity would have anything to do with making one company less evil than the other is beyond me. Both companies are not humans, they don't have emotions. They have directives and agendas and goals. Depending on your stance either could be evil and either could be good. Apple's agenda is to think of the user environment first, to turn a blind eye to what everyone else is doing and carve their own path. Microsoft's agenda is to provide software that is more or less utilitarian and generic so that it fits in many environments. Being creative is not one of their high points. Apple does hardware, Microsoft does very little. Microsoft is trying hard to capture some of what Apple is peddling, because, it genuinely is good stuff. When you've got 10s of thousands of Microsoft employees touting iPhones and iPods, it should tell you something.
  • -3 Hide
    rohitbaran , July 24, 2010 4:43 AM
    Hmm, as long as people keep buying the crappy iPhone and the too expensive Windows 7, these things will keep happening.
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