Microsoft reports $4.5b in profit, a record $16.04b in revenue
By Ross Miller 
posted July 22nd 2010 5:14PM
posted July 22nd 2010 5:14PM
We know you're interested in comparisons, so we'll just go ahead and break it down for ya: the gang in Redmond is still beating Apple in both revenue ($16.04 billion vs. $15.7 billion) and profit ($4.52 billion vs. $3.25), but that margin feels smaller than it used to. Enough to keep the rumored pressure off Ballmer? Frankly, we don't even think biplanes could knock the man off the top of a tower, but Windows Phone 7 has a lot to prove, and fast. Microsoft is hosting a webcast of its report later today -- usually much ado about nothing, as far as we're concerned, but we'll listen in and let ya know if anything interesting pops up.
Update: Some interesting Xbox 360 statistics. 1.5 million consoles were sold this last quarter. Xbox Live has 25 million members, and for the first time since its inception, the revenue from the Marketplace exceeded subscription revenue.
first. good to see microsoft doing well.
@Delasoul so Apple and Microsoft can coexist. But what happens when you throw google into the mix?...
@Delasoul
I've always wondered why people insist on making themselves look so dumb by being the first person to comment with absolutely no insightful information.
@Delasoul
Yeah, their doing well in the windows 7 department, but I would really like to see them do something good in the other departments. They should at least make another os, made for touch tablets and computers since they keep trying to use a cpu hogging os on things that aren't meant for it.
Well done. WP7 incoming as well.
Not bad MS, not bad.
@Delasoul
Right....god damn. I thought they would do way less than Apple. 179 million licenses of Windows 7!! WOW....i think that stock price is going to go up. Bill Gates getting richer. All he does is killing mosquitos trying to cure a disease. That most be good news to him.
@Delasoul i think thats more than apple and microsoft doesnt make hardware
@deliteguy Compact Embedded says Hi.
@Delasoul
Some people on that Ballmer thread were very bitter, something about stagnating market cap and whatnot. Maaaybe want to rethink that...
@BlackedOut
What?
@BlackedOut You seem to know Compact embedded, can you introduce him to the Metro UI guy? he's one of my friends
@big nazty
it is more than Apple. don't they make the 360.
@Delasoul
Why report about MSFT and not GOOG's earning?
@Bryant
I think your mad cause you weren't first. I gave my 2cents on the suprising(at least for me) news. whats wrong if i'm happy my comment gets noticed?
@arash No, the whole point of Compact Embedded is that it is a backend framework for which OEMs create their own UI to differentiate their product.
@big nazty Hello from Seattle.
@Delasoul
google makes no money from their android OS sales. Google also makes no money from their desktop OS sales. google docs is free and it's payed version brings in little revenue compared to adwords. MS makes more money than google from cloud services and office has more payed customers of office web apps than google. In fact, google has failed to monetize anything except adwords. This is why google's stock has been in decline recently and why MS and Apple will keep printing money for decades to come. In other words, throw google into the mix and nothing really changes.
Sure android may be the dominant phone OS. yet translating that into dollars will prove very hard for google which essentially has only been successful at one thing and the rest is just giving away for free or plain losing money.
@deliteguy
I think it's time they go back to the drawing boards and give us a better phone. Not that Kin-poop stuff. Something with a nice AMOLED touch screen, nice hardware, WP7 OS, nice battery life and at least 8MP camera with flash. I hope it will have 16Gb on board with mSD expansion slot. And when they make it all happen, they sign up all four US carriers and Canadian carriers and offer better price. Watch out apple and google! Only if I was running MS!
@LSE Whilst I agree with some of your points, you describe that giving things away for free as if it is a flaw in their strategy in which you are missing the point that its further solidifying their core business; information. By giving these things away for free they are spreading and solidifying their position by getting in return the information and usage data that they can monetize on. I find there's a lot to say about heavily marketing a product to get people to use it, but there's also alot to say about word of mouth and producing something that does its job exceptionally well that people use in their daily lives; whether thats internet browsing, mobile browsing or soon tv.
@fpad77
I think the biggest thing that google brings to the table regarding microsoft financials is that with android being free to all who want it, it prevents microsoft from being able to charge any significant amount to vendors who will use windows phone 7, and also whatever version of windows will make its way to the exploding tablet market.
With the smartphone and tablet market, microsoft is not going to be able to repeat what happened in the PC market, with every pc sold giving microsoft a chunk of change.
That huge loss in potential future revenue is all due to google developing a solid android OS - and giving it away for free.
@Delasoul
If we throw Google into the mix then robots will mercilessly kill us all.
@deliteguy They do have that windows embedded something-or-other for tablets.
@Kiwipoweredkiwi
The cost of the OS isn't the money maker for mobile devices. It's the marketplace. That's why Apple has such a tight fisted grip on the iPhone and why Microsoft is moving in that same direction. Side-loading apps doesn't = money in the companies pocket. Only when consumers go through a marketplace will MS and Apple (and Google) make money.
What is interesting to me from an MS perspective is how strong their marketplace can become. With integration into Zune and XBox the potential is absolutely huge. iTunes has been a cash cow for music but the opportunities for MS through gaming trumps that IMO.
@Delasoul
And IBM, HP and Oracle (considering they *just* bought Sun)?
@Delasoul
MS has been "doing well" ever since it was first concieved... Old news...
@Delasoul
Yum... Google mix...
Hopefully, healthy competition and the consumer wins?
@Kiwipoweredkiwi
"That huge loss in potential future revenue is all due to google developing a solid android OS - and giving it away for free."
Well, let's be real here... It's not *all* due to android... There's another mobile os that has something to do with that, probably more so than android.
@vqro
iOS? yes of course - but I was referring to the "licensed phone OS" model of Android, and how its already eaten windows phone 7's lunch in that space.
@Delasoul
death?
@Delasoul
Am I the only one who is surprised that Microsoft has a significantly larger profit margin than Apple? Everyone has always told me that Apple has overpriced computers, but this paints a different picture, unless I'm missing something.
Good Show MS... Now about that 'Courier' project.... ?
@DaHarder
yea! courier i want you!
@DaHarder
I hope they find it in their hearts to give us the courier. I'd drive down to the state to buy it lol.
@hero785, if they release it in Canada first I would drive up there to get it.
Also, I wonder how much rock band gets... I know people that have bought like 150 songs (they aren't that cheap if I recall).
@DaHarder
no chance - according to the article the entertainment & devices division lost hundreds of millions of dollars this quarter - Courier would fall into this division so I cant see them piling the tens of millions of dollars minimum needed into the courier to get it to market - especially with no signs that anyone would buy it except for us geek who would love it.
The general public likes simple stuff, like the ipad - regardless of its limitations - if its simple and shiny, then it will always outsell awesome products that have so many great features that it confuses the general public and scares them off (see microwave dinners/fast food vs cooking it yourself at home).
Thats right, I just compared the ipad to a microwave dinner and a windows tablet to a home cooked meal. lets be honest now - I know what i eat more of.
@DaHarder
Jebus yes. That tablet look like a dream tablet for every geeks out there. Even greater for designer.
There might be a future for that upstart company.
@supremehustle
this is with no iphone type product....if they hit the mark with the phone....watch out.
@Seven2k
They did...with Kin! Didn't work that well
WP7 on the other hand is a totally different story...can't wait til I get to smash my iPhone!
@Bt0wnsFin3st
Short term memory haha....yea i forgot.
@Seven2k
YEAH! Just like the Zune trounced the iPod.
@gn7465
who said trouncing anything over anything??
Believe it or not, Zune is great product...just not supported well by MSFT. When I see great products, I buy them. I bought an original iPhone when it came out because it was revolutionary at the time. And I'm still using it. Currently I believe, EVO is the best phone available on the market...I would buy it in a heart beat if I was with Sprint. When I see a faulty product such as iPhone 4, I ignore them.
Stop hating...competition is a good thing! I believe WP7 will be a great product and I'm really looking forward to buying a phone with WP7.
Sorry, I'm not a fanboy who falls for tricks of so-called God Jobs...
@Seven2k
Windows phone 7? even if it manages to catch iphone or android market share - Microsoft isn't going to get any money from the actual phone sales. afaik they are just giving the OS away liek android. maybe get a tiny bit from app sales and search - but hardly comparable to the margin they were getting 5 years ago on windows mobile sales.
@Kiwipoweredkiwi
Have you ever heard of licencing OS?
@Bt0wnsFin3st
a new unproven lacking features windows OS vs a maturing Free Android OS?
good luck licencing it for more than pennys.... why would manufactures licence something when they can get a no doubt better product which already has a big marketshare and tens of thousands of apps for free?
I'm guessing Microsoft is actually PAYING manufactures to ship those launch phones - just like its paying developers to write apps. windows phone 7 is gonna be a suckhole for MS money...
@Kiwipoweredkiwi .
Last time I checked almost all the big names were launching WP7 phones on day 1. Dell, HTC, ASUS, Samsung, LG...list goes on...
I could say the same thing about iOS...missing robust gaming network, zune-type music subscription pass, FULL office support!! There's no such thing as a perfect OS. Pick the one that best suits you.
Maybe I'm missing something?? Drink some cool-aid and stop living in denial.
@Bt0wnsFin3st
Yes, those companies are readying launch phones - my point is that MS is getting sweet f all from them in licence fees.
@Kiwipoweredkiwi
"afaik..." and "I'm guessing.." doesn't sound like sound research to me.
Afaik and I'm guessing you are trolling.
@FuzzyBunnySlippers
how am I trolling?
its common sense - take your typical HTC produced smartphone - lets say it costs them $200 to make a particular model that can have either android or windows phone 7 on it.
The android model will cost HTC $200 + a free operating system = $200. The exact same phone running windows phone 7 will cost $200 + whatever MS licence is going to be = e.g more than $200, and more than the same phoen runnign android.
That means 2 things: WP7 phones are either going to have a higher retail cost than the android equivalent, or are going to generate a smaller profit margin for the phone manufactuer.
In either situation it means the phone manufacture would be better off selling the android model.
@Kiwipoweredkiwi
The reason big name companies WILL license WP7 is to give customers choice. Why wouldn't HTC want to offer Android and WP7 because ultimately they're competing against Apple? Just because you are not waiting for WP7 doesnt mean nobody else is. And from what I can tell just reading engadget article comments, I'm not the only one.
...oh forget it, time will tell!! there's no point of arguing with trolls....