Microsoft Reports Record Earnings, Stays Ahead of Apple

Even though Apple recorded record revenues earlier this week, it is still trailing Microsoft, which just reported its own record revenues.

There had been some speculation earlier this week that Apple might surpass Microsoft in revenues for the first time.

However, Microsoft is still one jump ahead: It just had its best Q4 ever with $16.04 billion in revenue.

Apple recorded $15.7 billion in revenue.

Microsoft made the haul on sales of its old stalwarts, the Windows and Office software lines. It’s online and entertainment divisions, which include its mobile efforts, lost $696 million and $172 million respectively.

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Apple Beats Microsoft in Quarterly Profit for First Time Ever

It’s only a matter of time before Apple passes Microsoft in revenues, and will likely come next quarter. Apple is estimating $18 billion but may hit $20 billion: it routinely lowballs Wall St. Apple already passed Microsoft’s market capitalization in May.

To see how big Apple could get, check out this Macworld story: Think Apple is big now? You ain’t seen nothing yet, which argues that Apple’s iPad, iPhone and overseas businesses are just getting started, while the Mac goes from strength to strength.

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About the author

Leander Kahney is the editor and publisher of Cult of Mac, and author of three books about technology culture: Inside Steve’s Brain, the New York Times bestseller about Steve Jobs; Cult of Mac; and Cult of iPod. Leander has written for Wired, MacWeek, Scientific American, and The Guardian in London. Follow Leander on Twitter @lkahney and Facebook.

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Posted in Apple, News |

Mike
I’m not trying to be pro-Apple or anti-Microsoft here or anything, but does anyone else smell something fishy?
Xavier
“the Mac goes from strength to strength”
Hope you’re right. In the last 3(?) years, nothing new has arrived in the Mac world. Only upgrades of previous products with few-years old technology. Not that I care much, I am happy with my ’07 macbook. But if all the effort is on iOS and iOS devices, I am worried about the Mac world.
Diego
Xavier we don’t know if apple is planning anything, but don’t you think if something is going right to keep doing it. The mac had it’s record revenue this Quarter, it’s up 33% different than last year.
Xavier
Diego, as I said, I’m happy with my ’07 macbook. And I’m a big fan of “if it ain’t broken, don’t fix it”.
I’m just worried about the iOS clearly getting most of the attention, including on the hardware aspect. Snow Leopard is fine (actually, I’ve been happy with all the unixes I’ve been using in the last 15 years). It’s just the hardware it’s running on. Nothing wow has appeared in the last 3 years, which is quite a lot, especially for a hardware company such as Apple.
In the last years, Apple has been very efficient on the iOS front, and windows has lost terrain with Windows6/6.5 which had nothing new. On the other hand, Windows 7 seem to have reversed the Vista tendance and is adopted as the next Windows OS after XP.
I am not convinced Apple’s Mac performance is due to what Apple proposes now as Mac products. I think it’s the consequence of the very good Mac products Apple had in the past (and hence a lot of people now recommend Macs, even if the last Macs are kind of “standard” hardware-wise), and of the iPhone that people want to pair with a Mac.
I might well be wrong, just a feeling…
Bubba
The Mac had another record quarter, but most analysts say that can be attributed from the trickle-down hype effect on iPhones and iPads. Mac fans have a legitimate concern that Apple has relegated the Mac product line to a neglected stepchild of the more-loved mobile gadgets.
If it were not for the Macintosh computer, and the Mac owners and loyalists that kept the brand alive when Apple was nearly bankrupt in mid-1990s, Steve Jobs would not have a job today. In fact, I would imagine that Apple would have disappeared by 2001 had the Macintosh failed to “hold the fort”, and Steve Jobs today would be retired from the industry and simply doing cameos on Dancing with the Stars.
A really stupid person might counter me by saying that “Well full-sized computers, which is what the Macintosh is, are no longer so necessary when we can perform many of their tasks on small hand-held computers like iPads, blah blah blah.”
That’s only true to a small extent. You still NEED full-sized computers to run workhorse programs like MS Office, FileMaker Pro, and Adobe Photoshop, and to run and manage businesses. Apple would be moronic to concede that hugely critical segment of the market to someone else (Googly OS?) ….. if they neglect the Mac line.
Lynch
Well full-sized computers, which is what the Macintosh is, are no longer so necessary when we can perform many of their tasks on small hand-held computers like iPads, blah blah blah
porkchop1234
I’m hoping when they finally offer the new refresh the new macs will bring something new to the table. Hopefully what we have been hearing about that new touch pad is a hint of whats to become paired with OSX and some future new killer features with some new cool hardware.
P.S
Anyone heard anything else about the Macbook Air? Supposedly rumor had it it was getting slimmer and a smaller screen. Any new info about that?
JDS
I am glad MS did well. I own stock in both MS and Apple. A strong MS is good for Apple.
Charlietuna
Well, MS is hardly an “Apple rival” these days. Anything that Microsoft does these days has little impact on Apple, and hardly poses a threat to Apple’s success.
If anything, you are right. Apple needs to keep Microsoft around…. because Microsoft is the only (software) company that can keep a monolithic unstoppable Google from overwhelming every market in sight, and becoming Big Brother of the Internet. Google is literally ‘The New Microsoft’.
maddoguser
Yesterday Microsoft, today Apple, tomorrow Google after that who knows. What’s in a name?