The iPhone Makes More Money Than Every Microsoft Product Put Together

The iPhone Makes More Money Than Every Microsoft Product Put Together

This device alone makes more money than one of the biggest names in tech.

The iPhone has been an incredible success for Apple. So much more of a success than we all predicted when it was unveiled back in 2007. It’s the hottest smartphone on the planet, and at five years old, it’s now bigger than Microsoft’s entire business put together. With $22.7 billion in sales last quarter, the smartphone outsold everything Apple’s biggest rival has to offer.

Let’s put that into perspective: One Apple product outsold everything Microsoft has to offer. It sold more than the Xbox, Microsoft Office, Windows Phone, and the Windows operating system itself — put together.

For the last quarter, which ended on March 31, Microsoft made $17.4 billion. That’s $5.3 billion less than Apple made on the iPhone.

As noted by Vanity Fair, “cool is what tech consumers want.” And Microsoft doesn’t offer that.

Cool is what tech consumers want. Exhibit A: today the iPhone brings in more revenue than the entirety of Microsoft.

No, really.

One Apple product, something that didn’t exist five years ago, has higher sales than everything Microsoft has to offer. More than Windows, Office, Xbox, Bing, Windows Phone, and every other product that Microsoft has created since 1975. In the quarter ended March 31, 2012, iPhone had sales of $22.7 billion; Microsoft Corporation, $17.4 billion.

What’s even more incredible with these stats is when you look at the positions Apple and Microsoft were in just ten years ago. Apple was hugely successful with the iPod, but even so, the company could only dream of turning over the kind of numbers Microsoft was seeing.

Even now, Macs still aren’t as widespread as Windows PCs. But thanks to devices like the iPhone and the iPad, Apple sees more revenue and profit than Google and Microsoft — two of the biggest companies in tech — combined.

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  • hanhothi

    Revenue and profit yes, number of items sold (hardware or software) no! Apple is able to grossly overcharge for its products, and so profit is higher. I don’t think that is a good thing, something to be proud of, I call it RIP OFF prices!

  • KillianBell

    Revenue and profit yes, number of items sold (hardware or software) no! Apple is able to grossly overcharge for its products, and so profit is higher. I don’t think that is a good thing, something to be proud of, I call it RIP OFF prices!

    Isn’t that the whole idea when you’re running a business? How many items you sell is irrelevant if you’re not making a profit.

  • AlliOSNews

    Revenue and profit yes, number of items sold (hardware or software) no! Apple is able to grossly overcharge for its products, and so profit is higher. I don’t think that is a good thing, something to be proud of, I call it RIP OFF prices!

    Uh, the point of business is to profit? Apple is not a charity.

  • splitter

    Many Android users cannot afford an iPhone….thus they get a “free” Android device by signing a 2 year contract.

    This, and the fact that there are dozens of cheap (low quality) Android devices to choose from inevitably leads to an inflated marketshare for Android…hardly something to be proud of in my opinion.

    I’ll take profit and high quality devices that focus on user experience over marketshare everytime.

  • The_Truth_Hurts

    Is it surprising at all? The iPhone is (extremely) cheap to make, especially compared to competitor phones. But at the same time, is the most expensive phone out there, even on contract. Yes $200 for Android or iPhone, but what isn’t said that iPhone still cost $100, if not $100′s MORE for the carrier.

    It’s (quite literally) almost a pure profit phone. Apple is at least making $400 in pure profit on a $650 4S.

    The question is: How long will that last? Yes, you want profits. But there comes a point where massive profit margins will (ultimately) destroy a company, if the company doesn’t act fast.

    That is why the American Auto makers went almost bankrupt, while the European Auto makers are bringing in profit records (for them at least).
    Ford, Chevy, Chrysler? For a good portion of 2000′s they pushed high profit margin SUV’s, Trucks. Why? Because they could get anywhere from a $5000 to $10000, if not more, in pure profit from these “trucks”. A car, on the other hand, may only bring in $500 to $1000. What happened? Suddenly, They got stuck with a bunch of SUV’s, Trucks they had to (literally) sell at a loss to Move them. Why? Because people didn’t want those any more, especially with high gas prices.

    What did The European makers did? They made a huge selection of cars. For example, Audi has the A3, A4, A5, A6, A7, A8, and about 5 or 6 more models. Oh, that does NOT include the versions (hatchback, sedan, wagon, coupe, convertible, etc..) of each model.

    Audi has OVER 43 “models”. That doesn’t include engine options.
    Audi A1: ~25 drive-train options
    Audi A3: ~75 drive-train options
    Audi A4: ~106 drive-train options for sedan, ~106 drive-train options for wagon

    Your Audi A4 have (quite literally) OVER 210 drive-train options. That is engine, transmission, drive-train (AWD, FWD), etc…

    And that doesn’t include any other options that are available.

    No, Audi doesn’t do that only. BMW, Mercedes, Porsche, etc…

    Right now? Each month pass, each quarter pass, they are breaking their own records left and right. Why? Because of CHOICE, OPTIONS. What they did is, was made what people wanted. If that is a $10,00 hatchback, they built that. And then all the way up to a $200,000 flagship sports car. Why? Because one size does NOT fit everyone. and making an SUV that has a $10,000 profit margin is just going to cause disaster.

    The reason why I bring that up, is how long will Apple massive profit margins last? Yes, you may claim that it will happen for ever, but it WON’T. If you are more interested in massive profit margins than making selection, it will “kill” you. and that can (literally) happen overnight.

    Yes, you want profits. But there comes a point where there is too much profit and all that will do is stab you in the back.

  • The_Truth_Hurts

    @splitter

    Look at the top selling Android devices. $200 to $300 android phones. (on contract).

    You’ll have to (really) go down the list to find “free” android phones. It’s the flagship phones that are selling. Galaxy S II, Galaxy S III, Galaxy Nexus, Galaxy Note, RAZR, RAZR MAXX, HTC One S, HTC One X, The list goes on. THOSE are the ones that are selling the most, and these are $200 to $300, NOT FREE.

  • Steffen Jobbs

    Revenue and profit yes, number of items sold (hardware or software) no! Apple is able to grossly overcharge for its products, and so profit is higher. I don’t think that is a good thing, something to be proud of, I call it RIP OFF prices!

    When you’re an Apple shareholder, that’s definitely something to be proud of. The whole idea of a successful company is to sell product and make profits. A business is not a freaking charity. I want to see Apple clean up the green. Just as Porsche, Mercedes-Benz, BMW, Aston-Martin, etc. can change more and get more, the same goes for Apple. The only people who complain about the prices are the ones that can afford them, and hey, those people don’t matter, anyway. Seriously, what sort of an idiot says a Porsche is just an overpriced Toyota because they both have four wheels. Jeez.

  • Tallest_Skil

    The iPhone is (extremely) cheap to make, especially compared to competitor phones.

    And since you refuse to provide proof of this, we can go ahead and ignore you.

    But there comes a point where massive profit margins will (ultimately) destroy a company, if the company doesn’t act fast.

    Sixteen years, doing the same thing, they’re only getting richer. Pretty sure you’re just plain wrong.

    Because of CHOICE, OPTIONS.

    So go buy an Android phone. Stop pretending you’re forced to buy Apple products or that the iPhone is the only device on the planet.

  • AppToday

    The iPhone is (extremely) cheap to make

    Marketing 101, it is not how much you can sell but how much people are willing to pay.

    American Auto makers went almost bankrupt

    It costs US auto makers more to make each car because the old pension obligations, union contracts, and bad product mix (too many SUV;s and too little smaller cars.

    CHOICE, OPTIONS.

    Sometimes more choices doesn’t pay: Look at HP and Dell, they have so many choices but confused the customers and each with razor thin margin.

    Apple massive profit margins

    Both Google and Microsoft have higher profit margins than Apple. In fact, Google makes more profit on each Android phone than any of Android licensees. Why? because the per unit cost for software is next to nothing. If Samsung owns Google, it probably makes the same profit margin as Apple.

  • bowlingGreen
    The iPhone is (extremely) cheap to make, especially compared to competitor phones.

    And since you refuse to provide proof of this, we can go ahead and ignore you.

    But there comes a point where massive profit margins will (ultimately) destroy a company, if the company doesn’t act fast.

    Sixteen years, doing the same thing, they’re only getting richer. Pretty sure you’re just plain wrong.

    Because of CHOICE, OPTIONS.

    So go buy an Android phone. Stop pretending you’re forced to buy Apple products or that the iPhone is the only device on the planet.

    You’re so dense that you refuse to believe something true, just because it doesn’t appeal to you personally? All right, here are real statistics.

    It takes $196 to produce an iPhone 4S with 16GB of memory. $215 for a 32GB. $254 for a 64GB.
    Compare that to $649, $749, and $849 for those respectively…
    Profit margins of 331%, 348%, 334%. Apple is screwing you for triple the price of an iPhone (yes, you! :) ) because due to that density I mentioned earlier, you think that’s somehow a good deal.

    Compare that to, oh, I don’t know, a $349 Galaxy Nexus with a screen that makes the current iPhone look like complete trash.

  • Tallest_Skil

    It takes $196 to produce an iPhone 4S with 16GB of memory.

    Link to actual proof, please. Anyone can just say numbers. Though I’ll just go ahead and preempt your link by informing you that ‘component cost’ does not include assembly, packaging, shipping, R&D, software development, marketing, sales, or third-party agreements.

    So no, it doesn’t cost $200 to produce an iPhone.

    a $349 Galaxy Nexus with a screen that makes the current iPhone look like complete trash.

    Here’s a better idea than wasting your time finding a fake link: shut up and go away, over to CultOfAndroid or somewhere you’re not universally hated.

About the author

Killian BellKillian Bell is a staff writer based in the U.K. He has an interest in all things tech and also covers Android over at CultofAndroid.com. You can follow him on Twitter via @killianbell.

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