Apple Earns 3.5 Times as Much Profit on iOS and OS X than Microsoft Does on Windows

Apple Earns 3.5 Times as Much Profit on iOS and OS X than Microsoft Does on Windows

While the beautiful hardware that Apple creates gets a lot of the attention, many people forget that the appeal of Apple’s devices is within the software more than anything else. Asymco.com recently published an article elaborating how the profit from Apple’s two operating systems (OSX and iOS) outpace the profits that Microsoft makes with Windows 3.5x over.

On the Mac side of operations the site says:

“While a lot of the credit for Apple’s success is rightfully assigned to the iOS franchises, the OS X business has more than quadrupled in five years. This has happened without drastic price fluctuations. Neither holds for the overall PC industry which has seen both volume and sales decline while prices have eroded along with profitability. On top of that, growth has nearly evaporated.”

Apple has seen a great increase in the use of the Mac platform, yet it still only accounts for 20% of Apple’s total profits. However, the growth of iOS has been equally remarkable. iOS now accounts for 75% of Apple’s total profits. The combination of the two contributes over 95% of the bottom line profit for the Apple juggernaut. When you compare this to Microsoft’s numbers you’ll find that last quarter Microsoft made sales of $4.445 billion, but their operating cost was tallied at $2.764 billion.

Apple Earns 3.5 Times as Much Profit on iOS and OS X than Microsoft Does on Windows

So despite the fact that Windows earned twice as much as the Mac earned, OS X and iOS combined enabled 3.5 times the profit of Windows. With the success that Apple recently enjoyed in overtaking Microsoft in terms of overall profit this news of the profit generation isn’t shocking, but it is very interesting to see how Apple’s ability to remain agile is helping it to quickly outpace its old nemesis.

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  • Deocliciano Okssipin Vieira

    A good example that innovation = guts, GOOD ideas creates JOBs, The rich ( Microsoft included because they have the money ) does Not create jobs.

    Now imagine if there was No this eagerness of world dominance a la Google and Microsoft, of licensing scheme?

    I do not believe that giants like Motorola, SONY cannot create their own OS as capable as OSX or iOS.

    Competition is in Apple’s DNA, the rest want easy money.

  • jayjaytee

    “… its old nemesis,” not “it’s.” — The Grammar Schoolmarm

  • TheMacAdvocate

    As the avatar suggests, I’m a little biased towards Apple.

    That said, you’re comparing operating system sales with integrated device sales. It’s not that it’s not impressive, it’s just different.

  • Jon Berke

    I don’t understand these figures since Apple gives away iOS free with the devices it sells. Where do these numbers come from? It sounds like a piece of hype to me.

  • CharliK

    They are likely taking into account the hardware. And I agree that the numbers sound like hype the way they are presented.

    They also likely don’t take into account that the excess money is what funds the workshops, the genius bar staff hours etc. So it really isn’t pure profit at all.

  • CharliK

    I don’t think it is competition per se. Apple doesn’t do things simply to one up the other guys.

    I think that Apple really does believe their own marketing hype about wanting to change the world. They make choices based on what they think is best for the common man. To bring the common man at least a few steps into the geek world. And for the most part it works. It certainly profits.

    But I think you are correct that the rest tend to look at the money over really considering their audience

  • Deocliciano Okssipin Vieira

    I don’t think it is competition per se

    It is, competition eagerness saved Apple, unlike what Microsoft is doing now, which is strategic partnership, people at Apple know that innovation is the key.
    look what Microsoft did, instead of copying Apple, like LG, Samsung and others are doing, W7 phone is original, people at Microsoft are learning from Apple.

    I think that Apple really does believe their own marketing hype about wanting to change the world.

    I think i understand what you mean ( but it is not marketing but core value, companies are made of people, and people are different, that core value glues people ), but for those who did not get “believe their own marketing hype”:

    Is iPhone, various technologies from the late 5 years not real game change?

    They make choices based on what they think is best for the common man. To bring the common man at least a few steps into the geek world. And for the most part it works. It certainly profits.

    Yeah!
    But there is no difference between A Geek and the common man. Only between a stupid geek and the non stupid common man.
    People at Apple are geeks.
    Technology withOut the human touch is a Big fail!

    But I think you are correct that the rest tend to look at the money over really considering their audience

    I do not believe that Apple thinks to much about its so much called audience, they are busy transforming their surrounding.

    i love Apple because they have guts, they are risky and change only when it is required.
    Just look at their computers, they change only what is necessary, everything Apple does it is a progression.

    OH, but they also fail sometimes, human touch after all!

  • jr926

    350% is not the same thing as 3.5 times. 350% is 4.5 times.

About the author

Buster HeinBuster Hein is Cult of Mac's Social Media Editor. Hailing from Roswell, New Mexico, but now spending his days in Phoenix, Arizona, he wastes most of his time eating burritos and reading Spanish romance novels. Twitter: @bst3r.

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