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.
It is not about the revenue or even the profit but it is about growth. Apple is growing revenue and profit-wise twice as fast, if not more, as Microsoft. That is why it has a higher P/E ratio and larger market cap. Besides Apple has a small market share (around 5% globally) and plenty of room to grow. Microsoft has 90% share ... not much room to grow. But of course who listens to logic here? But I thought I might try.
@JojoMojo
Depends on how you look at it.
Apple has room for growth in the computer sector, where they only have 5%; At the same time, Microsoft has so much room for growth in the consumer devices too. I doubt either can succeed in these.
Apple should focus on the consumer devices while MSFT should focus on the corporate and computer sectors. For over 25years, Mac has chased PC but globally, it still has just over 3%, same with MSFT zune, kin etc.
@Lumi
if you include ipad as a computer then apple is making deep cuts this year into microsofts marketshare. however some arbitrary perception has decided ipads aren't computers? if it was the exact same hardware that ran the mac os x desktop software, no one would dispute that it was a computer.
you know that when the pc vendors start shipping pads with some windows derivative on it that they will be counted as computers.
@Kiwipoweredkiwi
"if you include ipad as a computer then apple is making deep cuts this year into microsofts marketshare."
LMAO...3 million iPad sales ain't gonna do nothing to over 170 million windows 7 licenses alone let alone xp, vista!! Think before you speak...
@Kiwipoweredkiwi
"if you include ipad as a computer then apple is making deep cuts this year into microsofts marketshare."
Ah, now I see. Troll account is trolling.
I mean, nobody's actually that dumb.
Are they?
@Bt0wnsFin3st
3 million in just one month, in just one country. Isuppli is predicting 100 million shipped per year from 2012 onwards.
Add another 100 million android tablets and watch the ms fail wail at full volume
But of course Microsoft is still doomed....yep. DOOOOOOOMED.
Go Microsoft all the way!!!!!!!!!!!1111111
I laugh at all the Apple fanboys who try and act like combined stock prices determine how much a company is worth and how much it would sell for to a potential buyer. Welcome to the world of revenue and profit ladies and gentlemen.
@kenny goo Yes... all investors are stupid and you are the only smart one. The price of the stock reflects future earnings and not past earnings. Apple is growing much faster than Microsoft ... that's why it is valued more. Get over it!
@JojoMojo
Did I say investors were stupid? No. Did I say I'm the only smart one here? No. That's obviously not the case because millions of other people like me throw more money at Microsoft then all the people who throw money at Apple. And Microsoft doesn't even make most of the hardware it ships software for, unlike Apple who not only does that, but does it at exorbitant prices.
As much as Apple is worth more than $230 billion in stock right now, there's not a company in the world that would buy them for half that because they're not worth that much.
@kenny goo
PEG ratios comparison (NASDAQ)
MSFT PEG ratio: .976
AAPL PEG ratio: .851
Judging by those figures, despite apple being already larger in market cap than microsoft, it is still actually significantly undervalued by 17%! whereas microsoft is almost right in line (1.000 is considered "at value")
Apple makes all its money from overpriced, well-marketed hipster crap and Microsoft will whore out XP til judgement day but let's stop bickering for a moment - these are two AMERICAN companies doing very well during a horrible recession. We should be thankful for that. (At least until Kinect comes out - writeoff)
Granted not a single Xbox or iPod is actually made in this country but hey, at least the profits stay here.
Yes Windows fanboys enjoy your anti-virus programs, pre-installed bloatware and windows registry editing. And enjoy your cmd console and batch files. I don't care about the pretty UI of OS X. I just like to use the UNIX shell to do most of my work. Mac is beautiful both inside and outside. Windows is just a polished turd.
@JojoMojo
My antivirus software is free from Microsoft, and even Apple suggests users to use one as well. I flatten and reinstall my OS without the OEM add-ons. The footprint of the OS is not significantly larger than any OSX installation, despite the vastly larger hardware platform possibilities. There is little to no reason to open a cmd console for most consumers. The batch file has been supersceded by PowerShell which is immensely more useful, and has many unix commands available via alias.
In saying this, i realize that the points you make are ultimately contradictory from one sentence to the next. If I may summarize for you: You don't care about the UI, but Mac is beautiful outside. You use a Unix shell, but there is somehow something wrong with a cmd console.
I think you did a great job of arguing with yourself!
@JojoMojo ...polish another turd and get osx. There, turds for all.
That beats Apple and Google.
Hah!
Is it me or does that pic resemble a tomb stone? LOL
@theshift
It's you. You resemble a tombstone. Thanks for playing. Tip your waitresses. That's all folks!
Why should I give a crap how much a corporation makes again? No, I don't invest in them.
@Shooter McGavin
and you made it to the bottom of the article entitled "Microsoft reports $4.5b in profit, a record $16.04b in revenue", just to further go on to post to it? Good question. Wrong people to ask... the answer lies within.
@FuzzyBunnySlippers
I already know the answer, the question is for everyone else.
Ross - Your comments on stock price are so poorly placed that I actually registered for an account. So the stock price is still lower than half of the dot com heyday? Did you come up with that metric on your own? I guess Cisco is angry at John Chambers because they closed today at 23.27 versus their 80+ in January of 2010? Make sense?
@Bshore1998 Sorry, Ross - Meant for Paul!
Good news now that they're offering great products again.
So all the ipad, iphone....... IOS4 hype..................... Yet msft wipes the floor with apple sauce LOL................... A cool 1.3 Billion More in profits, Lets not even mention the revenue factor!!!
@Silverlight3000
full financial year earnings growth (NASDAQ):
Microsoft: 21%
Apple: 128% (not a typo)
call me in a year and tell me if you still so cocky....
@Kiwipoweredkiwi
Imagine this WP7, Bing,Zune, Kinect (Xbox), Windows Embedded Etc. are all prospects that can potentially magnify this company's portfolio exponetially.
I am 25 years old. Lets say for the last 5 years. All i have read in financial forecast is that the end is near for msft. Yet they somehow manage to consistenly make more profits than Google and Apple without fail.
It just seems to me that every year, people says to me wait until next year. Seriously its old. All I hear is Apple this, Apple that...... Android this.....Android that........ Yet they just cant seem to make as much Profits ever in life.
@Silverlight3000
you seriously thoughi including zune in the mix would help your argument?
more appleTVs are probably sold each year than zunes total sales to date.
@Kiwipoweredkiwi
lol it is understood that nothing fails like apple tv, this is a known fact on all forums....................... not even zune!!
anyhow i applaud apple for doing well. but a 1.3 billion gap in profits will not be a easy mountain to climb
@Silverlight3000
Dude 1.3 billion? - that will be gone within a quarter.
Appletv fail? It sells in every country that apple sells in.
zune? No one here has heard of it. Nothing fails like the appletv - let's best not mention the kin then, and let's not mention it's $240 million write off in today's result because of kin. Or how about the billions of losses from the xbox "success".....
@Kiwipoweredkiwi
Ok then......... How sad is that, the kin fails horribly and they still manage to have a gap of 1.3 billion in profits!!
You seem to think no one knows about the zune because your riding apples d@#k
The simple fact is MSFT makes more revenue and profit every quarter, since your obviously 15 you've clearly missed the pass 20 yrs!!
Just be happy apple is not heading into bankruptcy anymore, The last time that happened, MSFT had to bail them out!!
knowing msft makes so much money makes me feel happy
@deedeedee Mine is the best. Windows users are allowed to custom-build their own rigs that will trounce anything Apple makes , and run all the games your Mac won`t. And do it for less money !
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tr5f44tf
It’s interesting how Apple and Google have strayed away from their original product and are thriving. Is this a good long term survival model?
http://bit.ly/a3Za4G
Thoughts?