Microsoft reports lower quarterly profit than Apple for first time since 1990 as consumers shift to iPad

“Microsoft Corp., the world’s largest software maker, reported third-quarter profit that met analysts’ predictions as consumers shunned Windows personal computers in favor of tablets such as Apple Inc.’s iPad,” Dina Bass reports for Bloomberg.

“Net income in the fiscal period that ended in March rose to $5.23 billion, or 61 cents a share, from $4.01 billion, or 45 cents, Redmond, Washington-based Microsoft said in a statement today,” Bass reports. “Excluding a 5-cent per-share tax benefit, earnings matched the 56-cent average of estimates compiled by Bloomberg. Sales rose to $16.4 billion, compared with the $16.2 billion average projection.”

Bass reports, “Personal computer shipments unexpectedly fell 3.2 percent in the quarter as businesses and consumers held off purchases and shifted to tablet computers, IDC said.”

MacDailyNews Take: “Unexpectedly” only if you haven’t been paying attention.

Bass reports, “Microsoft’s multi- year contracts with corporations weren’t enough to make up for businesses that are holding onto machines for longer periods and consumers who are choosing iPads over a new laptop with Windows.”

Read more in the full article here.

MacDailyNews Take: In Apple’s fiscal 2011 second quarter ended March 26, 2011, the company posted record second quarter revenue of $24.67 billion and record second quarter net profit of $5.99 billion, or $6.40 per diluted share. The last time Apple produced more profit in a year than Microsoft was 1990, so if you felt a disturbance in the force today, now you know why.

Welcome to the rearview mirror, Microsoft!

Now, please excuse us while we bathe in luxurious schadenfreude.

[Thanks to MacDailyNews Reader “jetpuck04” for the heads up.]

Related article:
Analyst: Apple on target for its first $100 billion revenue year – March 30, 2011

77 Comments

      1. <– stuck using the mobile version of mdn on iPhone and safari (well now terra) on iPad cause mdn is too lazy getting the app back up and running.

        On my Mac… Sure adblock works ok.

        Only way to block the ads on the iOS devices, jailbreak.

  1. The final lines from the original post:
    “Everyone is worried about the Windows numbers,” Thill said. “That’s the cash cow and everyone is worried the cow is running out of milk.”
    Gonna just bask in the schadenfreude for the rest of the day…

  2. It’s already toast and those sales figures are bogus. Beleaguered Microsoft sells retail copies of vista 7 for a hundred bucks. That’s not a sign of high demand – it’s a sign of a company struggling to move inventory.

  3. Actually the more I think about MS’s earnings report the more I realize that one thing stands out that a lot of people are missing.

    Consumer PC sales dropped 8%, and yet Microsoft’s profit rose 31%.

    Everyone likes to believe that MS’s earnings are tied with a chain to PC sales but their earnings report this quarter kind of kills that notion dead in its tracks.

  4. Bill Gates iCal’ed:

    You know, I’m a big believer in touch and digital reading, but I still think that some mixture of voice, the pen and a real keyboard – in other words a netbook – will be the mainstream on that… It’s a nice reader, but there’s nothing on the iPad I look at and say, ‘Oh, I wish Microsoft had done it.’ – Bill Gates, Microsoft Chairman

    *** end of iCal ***

    I want to know what Bill thinks of the iPad now! (lol!)

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