Apple closes the revenue, income gap with Microsoft to just $1 billion

invisibleSHIELD case for iPad“As I briefly noted yesterday, only about $1 billion separated Apple from Microsoft results in the first calendar quarter,” Joe Wilcox reports for Betanews. “With so many blogs obsessed about when Apple’s market capitalization might exceed Microsoft’s, perhaps the focus should be on earnings.”

“[On Friday], Microsoft announced fiscal 2010 third quarter results: $14.5 billion revenue, $5.17 billion operating income and $4.01 billion net income, or 45 cents a share,” Wilcox reports. “On Tuesday, Apple announced fiscal 2010 second quarter results: $13.5 billion revenue and net profit of $3.07 billion, or $3.33 a share. Apple revenue is $1 billion behind Microsoft, while net income trails by a little less — about $940 million.”

“The $1 billion gap was unthinkable a year ago and unimaginable a half decade ago. In the same calendar quarter of 2005, Microsoft reported revenue of $10.9 billion, operating income of $3.89 billion and net income of $2.98 billion, or 29 cents a share,” Wilcox reports. “By comparison, Apple reported $3.24 billion revenue and $290 million net income or 34 cents a share. The difference between the two: $7.01 billion by revenue and $3.6 billion by net income.”

MacDailyNews Take: Here’s to the crazy ones: As we have always said, even as many short-sightedly waved (and continue to wave) the white flag, the war is not over. And, yes, we shall prevail… No company is invincible. Not even Microsoft.MacDailyNews Take, January 10, 2005

Wilcox continues, “Apple hugely beat the Street during the last two quarters — by $1.46 billion during fiscal Q2. It’s not a stretch of the imagination or reasonable speculation for Apple to close the distance during second calendar quarter or sometime later in 2010.”

Full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

38 Comments

  1. I pointed this out last quarter, that Apple’s Xmas quarter beat Microsoft in 3 of the 4 quarters from last year. That’s how close Apple was getting to Microsoft.

    It’s amazing how much Apple is making now. They made $3.1B this past QUARTER, their traditionally weakest quarter of the year. They made $3.5B in ALL of 2007! And, 2007 was a good year for Apple.

  2. Just remember that we have our day too. The reason I’m allowing myself to enjoy these Apple products now is because they are at the peak of their capabilities. They make the difficult seem easy. But eventually that will end, and we should enjoy what we have while we have it. If we take ourselves too seriously, or act too arogant (a little more humility would be good for you MDN), we’ll just hit that inevitable wall that much harder. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  3. I remember reading that MDN quote back then and, though I’m a huge Apple advocate, not quite believing it. I am delighted Apple has proven my doubts wrong and will soon overtake Microsoft. Amazing.

  4. @KenC
    At the end of fiscal 2006, Apple broke pass the $20 Billion dollar
    marker for the first time in company history!!!!!!! So 2007 was even
    more!!!!!

    This fiscal 2010 my estimate is $58 Billion total and we will all know by October 2010 ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    AAPL stock is a ” no brainer ” to hold or buy!! So far no bad news to stop them. All positives!!!!!!

  5. @qka,

    But Microsoft’s success does NOT predate Apple, its success is directly dependent upon its coopting of Apple’s GUI. Which was breeze’s whole point.

    All large companies have their day in the sun. None of them, even the biggest, last forever, but some last longer than others.

    Microsoft’s legacy will be overshadowed by its failure to prevent malware from tainting its products, making them much less useful than they would have otherwise been.

    Apple will leave a legacy of literally changing our world and how we use computers in many different aspects of our lives.

    A big difference!

  6. Despite the famous “rivalry,” Apple and Microsoft compete directly in only a few relatively minor ways. Apple mostly profits from hardware sales and Microsoft from software sales. Apple’s primary competitors are other hardware makes in the various markets (computers, media players, mobile phones, etc.). Microsoft’s primary competitors are other those who provide OS software for third-party hardware devices, mostly Google at the moment; its cash cow is Windows, and it has a “monopoly” on PC operating system sales.

    Although it will be very interesting when AAPL matches and passes MSFT in market cap (or this revenue/income number), Apple is already a “winner,” way beyond anything ANY tech company has accomplished during the past ten years. Apple has succeeded in “beating” Microsoft by NOT competing directly with Microsoft.

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