Microsoft snags $14.5b revenue, $4.01b net income for Q3
By Ross Miller 
posted April 22nd 2010 5:31PM
posted April 22nd 2010 5:31PM
Update: Market Watch is reporting that Apple has today surpassed Microsoft on the S&P 500, with a float-adjusted market cap of $241.5b, compared with Microsoft's $239.5b. Exxon is still at the top. It's worth noting that this is a free-float index that only considers stocks readily available for trading, and not free-floating stocks such as those held by company insiders. According to the Wall Street Journal, that important caveat explains the discrepancy between those figures and what we're seeing in full market value, where Microsoft's $275.3b cap still bests Apple's $241.63b. So which is the largest tech company based on market capitalization? That depends on how you measure.
Update: The call is on and yes, we'll be liveblogging.
3:11PM Natal being previewed at E3 in June, unsurprising... and that's it!
3:11PM Last question. Q: "Windows 7 upgrade cycle... it appears that a lot of customers are going to attach the upgrade with a server 2008 R2 upgrade." Are you sensing that, and would that delay the typical cycle and / or increase server sales? A: "A high percentage of our customers are either in pilot or prelaunch for deploying Windows 7." We haven't seen that phenomenon... see? You weren't missing much.
3:08PM As you might've guessed, no, analysts aren't interested in yet-to-be revealed Halo Reach multiplayer maps.
3:03PM "Multinational OEMs are being a more significant portion of the PC market." Piracy is also apparently down, on a global scale.
2:57PM Most of these questions so far are primarily related to finance, annuities, etc. We're gonna try to abstain from relaying that and just let you know if they talk about any juicy hardware / software details.
2:55PM Q: "Return to normal seasonality in unearned revenue..." and so on. A: Not important.
2:53PM Q&A time!
2:53PM To clarify, that means the second half of this calendar year. And we've known all that.
2:52PM Entertainment and Devices in first half of fiscal year. Natal (and launch title), Halo Reach, Fable 3, and Windows Phone 7. That's the most exciting part we've heard yet.
2:47PM Entertainment and Devices and Mobile divisions were discussed briefly -- 1.5 million consoles sold, software attach rate 8.8%, first party software revenue declined prior to Halo Wars. Substantially upset by Xbox LIVE membership. And just like that, we're back to more numbers.
2:45PM Starbucks, McDonald's, Coca-Cola, and others are "all going to the cloud" with Microsoft. How does this affect the average consumer? It doesn't really, but we thought we'd share something so you knew you weren't missing much.
2:44PM "Last Friday, we released to manufacturing Office 2010." First availability in May, general availability in June.
2:43PM Search outperformed market. "We continue to be enthused with Bing's momentum." 10 months of growth. 11 percent share of search market.
2:39PM "We estimate PC market grew 25 percent year over year. Within that, we estimate consumer PCs grew almost 30 percent while business almost 14 percent."
2:37PM Bill Koefoed, General Manager of Investor Relations, is on the line now. Before that was CFO Peter Klein. More financial figures.
2:36PM So far we're just listening to someone read from the cue cards -- nothing new or exciting yet.
@Anatidae
Ha, this dude going on his daily Apple rant, don't you have a job?
@Anatidae
This is too easy..
"Microsoft is a monster. So many people poke fun of them (Apple fans, looking at you in particular) that they ignore the fact that Microsoft, however slow at times, does innovate."
Yawn... Examples? The only thing interesting they've done in the last few years is Xbox (small market, still in the red) and WP7 (not released until the end of this year, basically copying Apple's lockdown model, with a wonky swipy interface to get around patents).
"I suspect that Microsoft is going to be working hard this next year to hit back in the mobile space. Their phone OS is looking good, although not perfect. That is good for everyone though. It will push Android and the iPhone to new heights."
Yeah, they're starting from scratch with a CE 6 OS called Windows Phone 7. To paraphrase the luckiest dormroom assignment in history... 'Apple sells millions and millions and millions of phones every year, and Microsoft sells...zero WP7 phones' Have fun at the Apple iPhone 4 Event..
"The only thing that I don't like is when I read the Apple vs. Microsoft earnings. I just can't help feeling a bit ripped off by Apple as a consumer. It is like when you buy a car and someone you know gets the same car and then you find out that your dealer made a killing of you where the other guy got a great deal." Ah, that's cute, so Apple makes a profit and you feel sad. That's so very communist of you. Someone check this guys papers.
You know how MS makes its money? By writing a program one time, and copying it millions upon millions of times for basically the cost of the packaging (pennies). That's how much their ripping you off. Does that make you feel sad? Whereas Apple is selling you top quality devices at a healthy markup, MS is selling you... bits.. copying millions of times for free, at an insane markup.
"Lately, that is sort of how I feel about Apple. There is a fine line between being cool and a jerk. I think Apple, for me, has crossed over to the jerk side. Controlling, yuck. Kicking competitors where it hurts, nasty but typical corporate stuff. Smarmy ads filled with lies (but cute), typical. Then I hear that they make the most margins of any computing device maker... record quarter in the middle of a recession. Just bleed your customers more."
The fact that Apple has been able to get people excited about their products, year after year, quarter after quarter, is the envy of pretty much every company in the USA. You think that's a bad thing?? You've got the wrong attitude. People line up at their stores just to get a T shirt. MS can't get that kind of passion and brand loyalty from an crafty IBM backroom deal. So they'll probably never EVER have it. Want a Kleenex?
"So I am going to root for Microsoft strongly for a while. Not that isn't another unethical corporation filled with the greed you expect in US companies. I just think that if Apple gets served a bit, then we might see them return back to "think different" as opposed to "think like me"."
Root for Steve Ballmer's fat ass to ... what? Why? MS is a boring company full of really technically smart people who sniff Apple's butt all day long, until the lawyers tell them to shoo. 5 minutes later, they're back at it.
You're rooting for a rerun, a bad sequel, and the less attractive Kardashian sister, all rolled into one. Have fun with that.
MS have been hacks ever since their little Seattle Computer Club hackjob. Tick tock... Apple's comin' for ya. About 20-30billion to go. Revenge is a b*tch.
@Wesscoast
LOL
Man you guys sure are riled up. Christianity has nothing on a Apple/MS fanboy.
@N900 Yeah, wont do any good though, act like you're trying to be impartial and call people names. Everything works out just fine
@Wesscoast
"Apple's comin' for ya. About 20-30billion to go. Revenge is a b*tch."
So Apple surpasses Microsoft in maket cap ans then what? Just another talking point in your chamber when you talk about how much "better" Apple is than Microsoft?
You have to sell your product at a higher price to turn a profit. While we are on the subject of Apple for a bit.
tell me why Apple calls products that *they* come out with the most advanced mobile OS and most advanced OS in the world. Anyone else thats *not* Apple feel that way?
Also for something thats supposed to be advanced funny how it cant run on anything not Apple. Windows and Linux can run on every Hardware under the sun. Seems more advanced to me.
@Kwame Nkrumah
You have 90+ posts today alone, most of it drivel spewing from your adolescent brain. Not everyone is brainwashed by your "savior" Mr. Jobs. Going around calling everyone with a different opinion a "moron" shows how childlike you really are.
BTW I thought I told you to run along with your other trolls until you can learn to function it society.
@Dizzot
Damn this moron counts my posts for the day? Damn someone needs to get a job.
@AlienSix
Damn. Engadget just ate my post. I don't wanna write that all out again.
Recap: Look at MS's history of evildoing, for them to have sold their souls and now be passed by Apple is a big win for corporate america, and Americans in general. It's an inspirational story of the good guys doing amazing work, and actually beating back the pirates. If you don't know about the whole John Sculley deal back in the day, none of this will make any sense to you.
As for Apple's prices, they tend not to shoot for marketshare like MS does. Apple wants to make the coolest products in the world. To do that, sometimes you have to ignore general business sense. Again, give them credit for having vision, and having balls. On the other hand, Ballmer wants you to buy a Gateway for 200 bucks... Yawn.
If you don't think the iPhone is the most advances smartphone OS in the world, I honestly don't know what you thought happened in 2007. Android is extremely cool, but if you don't think it was 'inspired' by iPhone you're on drugs. If you want you can still find early Android OS build images on the net. They look like Blackberry!
Well, I respectfully disagree with your 'feelings.' Anyone can put out a piece of software that runs on PC open architecture systems. Apple, don't forget, loves to sell computers and laptops. If they just put OS X on the shelf people would be less interested in getting a Mac. OS X exists to sell Macs. So Apple made a business decision to do it all in-house, and, obviously, its worked out OK for them.
If you think its hard to make OS X work on a Dell, I refer you to the Online Guide-to's for getting OS X on a Netbook. It can be done in an afternoon. Apple is a 240 billion dollar company with 35,000 employees.I think if they wanted to, they could replicate the great work of your average WoW geek.
@Wesscoast since when did apple become the good guys? they have a closed off monopolistic company that doesnt allow outside dev tools for their phone or anyone to make hardware for their OS because they cant make a cohesive OS that runs on multiple platforms... MSFT = Jedi, Apple = Sith... deal with it palpatine
@Wesscoast
So that's what Apple fanboyism is??? A grudge that just won't die? That's what makes you endlessly defend a walled-in development platform and consistently higher prices, mixed with a healthy dose of agreeing with whatever Apple decides to give you?
"
Wesscoast
Wesscoast Posted Apr 22nd 2010 8:58PM
Neutral
@AlienSix
Damn. Engadget just ate my post. I don't wanna write that all out again.
Recap: Look at MS's history of evildoing, for them to have sold their souls and now be passed by Apple is a big win for corporate america, and Americans in general. It's an inspirational story of the good guys doing amazing work, and actually beating back the pirates. If you don't know about the whole John Sculley deal back in the day, none of this will make any sense to you.
As for Apple's prices, they tend not to shoot for marketshare like MS does. Apple wants to make the coolest products in the world. To do that, sometimes you have to ignore general business sense. Again, give them credit for having vision, and having balls. On the other hand, Ballmer wants you to buy a Gateway for 200 bucks... Yawn.
If you don't think the iPhone is the most advances smartphone OS in the world, I honestly don't know what you thought happened in 2007."
Awesome. That was then, this is now. You Apple fanboys really are stuck in the past, aren't you. You really didn't realize that, while you were defending them, Apple was slowly taking away your device's freedom one feature at a time. You just lapped it up because they were still the underdogs in your eyes.
You're seriously saying that in a completely even playing field, people would choose OSX over Windows? Really?? The reason they can sell OSX at such low prices is because they make it back in hardware sales. You misunderstand: OSX exists in order for Apple to control/ sell the hardware, not the other way around.
...Yeah there are ways to hack OSX onto a regular PC. It's still broken, doesn't have as much driver support, and won't update. Apple made OSX to work well on their highly controlled systems.
@SteveyAyo
Since when did Microsoft become the good guys, these are the convicted monopolists.
@Kwame Nkrumah because they learned from that and opened their system to allow for third party developers to easily create apps for their new phone, offer their Os to any manufacturer who would like to build a windows phone and since their founder is one of the most charitable human beings on the planet ... what has steve jobs ever done to better the world? nothing
@SteveyAyo
Yeah this must be why Windows Phone 7 is as locked down as the iphone.
@Mike10010100
"You misunderstand: OSX exists in order for Apple to control/ sell the hardware, not the other way around."
Well OS X exists to sell Mac hardware. Didn't I say that? That's why they don't license the OS. How is this unclear? I guess you need to re-read what I wrote. How many times can I beat a dead horse?
And yes, part of being a huge Apple fab is to remember the evil shit that MS did to get where it is today, financially. Essentially the birth of the consumer PC industry, and hope Apple almost lost it all because of some very sneaky betrayal from Gates and Ballmer. Is it my fault for wanting to see some payback? I hope you can excuse the cheering when Apple passes them in marketcap.
@SteveyAyo
If you think Apple didn't plan on doing 3rd party apps all along, you are really smoking the good stuff. Maybe the comment was sarcastic, fair enough. Think about it, Apple did everything it could to buy time while their developed the SDK, etc. Remember turning webpages into little icons, etc? That was their stopgap while their got their SDK together.
@SteveyAyo
"since when did apple become the good guys? they have a closed off monopolistic company"
dude. you're projecting. MS has a 90% marketshare and is a convicted monopolist around the world. try again.
"that doesnt allow outside dev tools for their phone"
this just came out like 2 weeks ago. they're getting away from lowest common denominator apps by saying, no auto compile stuff. is this evil, or is apple trying accelerate app development? iPhone came out in 2007 and they got the SDK out in 2008... so developers have been using Apple CocoaTouch, etc to make native apps for 2 years now. I think it's gonna be OK.
"or anyone to make hardware for their OS"
that's not evil! that's their business model. they made the OS to push Macs. Dude, you can call them crazy or stupid for having a >10% marketshare but you cannot call them evil for wanting to do everything under one roof. they make amazing products as a result of their vertical integration. not illegal and not evil. next...
" because they cant make a cohesive OS that runs on multiple platforms"
LOL. I guess you don't remember the Mac Clones.Look man, like I said. the Hackintosh community of unemployed basement dwellers has been doing this stuff for years, if you think Apple's 20,000 engineers can't do it, you're totally high. it goes against their incredibly successful business model. you're aware they're about to surpass MSFT in marketcap right?
"... MSFT = Jedi, Apple = Sith... deal with it palpatine" I know that's Star Wars, but... dude.. you need to put down the light saber ... you're freaking me out.
@Wesscoast
Let me get this straight, you think it's a triumph for America, the world and people in general, that one huge multi-billion dollar corporation whose primary goal is to make a profit surpasses in earnings and market share another multi-billion dollar corporation whose primary goal is to make a profit. Your argument is that one is "good" and the other is "evil". Wow, are you like 18 years old, hopelessly innocent, and not to mention a fanboy extremist?
@shishi
You missed my entire point. Of course.
It's great that Apple has done so well, considering they've done it by doing great products and taking huge risks, whereas MS got rich by stealing other peoples ideas. That's why people cheer for Apple and sneer at Ballmer.
As for my being immature, I wasn't the one made the totally infantile Star Wars reference, that was one of your buddies ;)
@Wesscoast
I don't see how the emergence of Apple is a big "Win" for America or the world. Both companies have a history of abusing the market. You sniff both their asses, it still smells like shit. However, MS has made a lot of effort over the last 1/2 a decade to improve its practices. You rarely hear of anymore coporate bullying. And when challenge, they will work with you rather than "go their own way".
Apple has only gotten worse. It doesn't help that people turn a blind eye on it. Corporate bullying. Consumer bullying. BLATANT misdirection (akin to) false advertising. Products that aren't anymore reliable than any other products.
In this day we live, Apple is the worst of the lot. You only think otherwise because you are in their cult. I was never a MS fanboi, nor a Apple fanboi so I can see quite clearly where both are headed; and MS is becoming the Apple of old. Apple is becoming the MS of old in even worse ways. MS never dictated to their consumers, nor did they blatantly misdirect you about their products; nor spew untruths about their competitors.
Good for us? Apple people should feel ashamed that MS is closer to the Apple Ethos of old than Apple is.
@ounkeo
Just STFU with this Microsoft has improved image. Stop spoodfeeding us bullcrap. You think we are kids. They are still the same convicting monopolists they are but what should we expect from fanboys pretending to be impartial.
@Kwame Nkrumah
Nowhere did i mention anyone, least you, of being a child. You brought it up and then got angry. That only means in the face of my comment, not even directed at you, you developed a guilt complex. Which means you know I am on to something; hence your retaliation.
The fact is, you have no idea what you are talking about in the least. Most of your comments are just attacks at other people. At least Wesscoast defends his views with what he believes.
You? Troll, if ever I saw one.
BTW using your metrics, I am a MS fanboi, masquerading as impartial. That would pretty much make me a fanboi of Sony, MS, Dell, HTC, Palm, Nokia, RIM and, yes, it even makes me a fanboi of Apple. I have defended all these brands and more against sheer, unmitigated ignorance.
I am a better fanboi than you and I don't even have to get angry to do it!
@ounkeo
Now all you do here is constantly attack companies, what are you good for on this blog besides attacking Apple. All your posts are here to attack Apple, you make no other contribution to this site and yet you call others fanboys.
@Wesscoast
"It's great that Apple has done so well, considering they've done it by doing great products and taking huge risks, whereas MS got rich by stealing other peoples ideas. That's why people cheer for Apple and sneer at Ballmer."
You assessment is overly simplistic and a compilation of decades of Apple cult-following ideals and smear-campaigning against Microsoft, it has little to do with the corporate reality that these two monsters deal with at PRESENT (see ounkeo's response for a clue). (Oh, and just FYI Microsoft spends 6 times more money (revenue percentage-wise) on R&D than Apple. And BOTH have very extensive patent portfolios. You'd probably dismiss examples of MS innovation, so why bother.)
@Kwame Nkrumah Yeah going around calling people "pathetic little pieces of sh!t!" gives you a whole lot of credibility
@AlienSix
I'm just returning the favour to him, you didn't hear what he said about me in his post.
@Kwame Nkrumah
Lol you're almost as funny as Jack and HighestRanked
@Abe
Hey still chasing me around?
geez hasn't anyone learned by now, profits and earnings have nothing to do with stock price, it is and always will be a pyramid scheme the more people buying a stock it goes up, more people selling it goes down PERIOD, you have to be in and out like double dutch till its all the houses money your playing with, because most likely you will never be at the top of the pyramid to know when exactly to buy and sell or to really move markets....@ 19-20 msft was a good buy 6 months to a year ago, just like apple was at 85-90......time to get out no one calls the top or bottom everytime, take your money off the table when its beneficial to you, its just like paying for eyeballs and clicks eventually it all comes down if you dont know what your doing dont expect to profit, rich people acquire wealth by robbing poor people
iMac > any windows all in one
MacBook pro > any windows notebook, because you can run win 7 on a mac book pro
iPod > zune
ipad> any windows tablet
apple TV > any windows video streaming service including xbox live for movies/ videos
iPhone> any windows mobile phone
windows is alive due to govt and corporate market. That's it. JMHO.
@jaffreywali
LOL
@jaffreywali hm... i guess just off the top of my head
iMac< Lenovo A70z (i can buy like 5 for the same price and same specs)
MacBook Pro < Hp EliteBook (again cheaper and better specs)
Ipod = Zune... both good
iPad< EVERY TABLET EVER MADE (Lenovo x201 being my favorite)
apple TV = a joke
iPhone> Winmo sure... but not WinPho
And Windows is alive because of their ridiculous market share and profits from the number one office and OS for ALL computers...
And yes you have to run win7 on a macbook pro to make it worthwhile meaning you have to pay MORE money on it... fail?
@SteveyAyo You're making the same mistake GM and Chrysler made v Toyota and Honda. That if you made a car cheaper, bigger and more powerful people would prefer it. Yet, people but products for the total package - styling, performance, build quality, service and essential features. If you look at your ratings you'll see why your type of thinking doesn't work in the real world. In your comparison design, user experience and build quality are non factors. You're looking at price and features. Hence why you're likely to pick losers. Companies like Dell and Lenovo are struggling because their product management folks are simple minded - like you.
@jaffreywali the hp elite book is sexy as hell and looks nicer than a macbook pro... youre also forgetting that gm and chrysler put out terrible cars that only went for like 60,000 miles... while my thinkpad has survived through two of my friends macbook pros and im not simple minded i try new technology when it releases and Apple has always left me dissatisfied sorry my experience has been seperate from yours but ill take an x201 over a macbook pro any day... and have
I think windows 7 is great because it was essentially Microsoft doing a mac os x. Win pho 7 is a rip off of iPhone, zune was a rip off of iPod touch....Microsoft is not even trying to innovate any more.
After all msft came up with surface and apple did the iPhone. Apple is great at matching technology to purpose. Now msft is simply copying Apple's application of technology. Surface was a flop, origami was a flop. All great technologies but horrible applications of tech. We have a msft multi touch table in our office for demos. Incredibly clunky and useful for only a few. The multi touch is cool on such a large surface though - magical for a demo. But useless as a product to sell, except to the DoD who will buy crap for $$$$$$.
@jaffreywali iphone OS and Winpho Os look NOTHING ALIKE and apple stole the taskswitching from MSFT... i figured you fanboys would be happy Microsoft developed such a different phone os than the iphails
@SteveyAyo
Hey Ballmer's houseboy how much is he paying you now?
@jaffreywali you have no idea what you are talking about do you?
@DougB541 He lost all credibility when he said
Win pho 7 is a rip off of iPhone
@Kwame Nkrumah 148,000 a year to make fun of apple fanboys like you... its a good job but he gets super pissed when im fair and balanced with EVERY company except for Apple of course but then again i bought apple products and just hated them so really i gave them the same opportunity as Microsoft Palm Google and Blackberry... why am i ballmers houseboy? because youre not smart enough to form a real response?
@jaffreywali i find it weird that in your rant about how useless the surface is you mention how incredibly useful people will find it and will pay lots of money to get it... what was your point again?
@SteveyAyo You sound totally ridiculous. You remind me of Bagdad Bob! Living in total denial.
@jaffreywali
You just said Windows Phone 7 was an iPhone ripoff...with a straight face no less.
@AlienSix Wp7 is msft aping the iPhone. All they've done is replaced iTunes with zune pass and xbox live.... and added their concept of hubs. Which will probably fail with users. Other than that, the strict control over hardware and software and focus on iPhone like usability cannot be missed on anyone. If anything it's more like iPhone than win mo 6.5 or their traditional stylus centric approach.
WP7 is msft's iPhone.
@SteveyAyo Surface is a cool demo tool. It's a useless product. It's been sold tto the DoD because they would buy anything if give them the right incentive and the incentives have nothing to do with using it. Even large corporations would never buy it.
@jaffreywali
Um, no. It does away with the grid of icons which has been prominent in smartphones -- including the iPhone -- for the past 10 years or so. No icons, get it? The iPhone and iPad have a "binary" interface experience: home scree with grid of icons - app - grid - app - grid - app - ad nauseaum. Sond slike WP7? NO. WP7 is more exploratory by design. And the hubs? Fewer taps to do stuff. Is this "aping" the iPhone? LOL keep believing that others are incapable of designing something as good or better than Apple, they went to school too you know.
@Kwame Nkrumah
Lol. "You didn't hear what he said about me." Uh....yeah....we did see. BECAUSE IT'S A BLOG WHERE EVERYONE CAN SEE EVERYONE'S COMMENTS.
God you're annoying. You, Jack, and HighestRanked.
Windows market share in terms of revenue is a lot "safer" business than market share that iPod/iPhone/iPad controls. By years end you will have a lot of competition for iPhone, also WP7 will give more competition to Symbian/RIM too. But we will see.
WOOT! Way to go Microsoft.... I hope they continue to innovate and impress just like they did with windows 7!