Microsoft is a big company by big I mean a huge tech giant when it comes to global business but how big is it? Redmond based software giant owns the #1 operating system in the world, the company also owns one the famous productivity apps suit Microsoft Office and there are tons of other services like Windows Live, Xbox, and many more. In January like any other company Microsoft also announced their revenues and profit figures from the last quarter.
Microsoft announced $20.86 billion revenue in their last quarter and by now you must know that Apple announced $46.33 in revenues. That’s more than double of Microsoft’s revenue, now a lot of people must be thinking that “okay, what’s so big about it, Apple makes their own phone and half of their revenues are coming from iPhone”. Well yeah, Microsoft also showed interest in the Phone Industry and they’ve been “in this” way before than Apple with their Windows Mobile Operating System. Let’s come to the interesting part of the story, if we split Apple’s numbers, iPhone alone brought more business than whole Microsoft in last quarter. Let me write it again, iPhone ALONE did more business than Microsoft, I mean complete Microsoft including Windows, Microsoft Office, Windows Live and all other web services they offer. Let get to some figures shall we, iPhone alone brought a profit of $9.3 billion for Apple Inc. and Microsoft brought a total profit of $8.2 billion.
It was not long ago that Microsoft CEO Steve Ballmer was fending off those observing that Apple’s market capitalization was closing in on Microsoft’s by saying that, regardless of market cap, Microsoft’s business was much bigger and more profitable. Well that’s not the story now, let’s review some basic number again:
- Microsoft: $20.86 Billion
- Profit: $8 Billion
- Apple: $46.33 Billion
- Profit: $17 Billion
So clearly Apple’s business is more profitable than Microsoft. As I mentioned above in the post that some people may think that iPhone is the only profit booster for Apple but here’s something more interesting, if we remove iPhone from Apple’s revenue chart not only Apple’s revenue was more than Microsoft but their earning looks more “evenly distributed”.
I found MG Siegler’s conclusion pretty much everything I want to say:
Point is: these charts don’t actually show Microsoft is a better business because they’re the most diversified. They just show how out-of-this-world Apple’s iPhone business is at this point.
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