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Microsoft reports higher profit margin than Apple, Google or Samsung, phone division hauls in $546 million

Posted: , by Daniel P.

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Microsoft reports higher profit margin than Apple, Google or Samsung, phone division hauls in $546 million

Rumors about Microsoft's demise and "the end of the PC era," as Steve Jobs used to put it, seem to be greatly exaggerated, judging by the company's Q4 results.

The folks over at Redmond managed to pull in $6.38 billion profit on just $21.5 billion revenue. In comparison, Apple made $13.1 billion, but on $54.5 in revenue, and Samsung hauled in record $6.6 billion of net profit from $52.45 billion of revenue. If we round up the margin percentages, we get 30% for Microsoft, 24% for Apple, and 13% for Samsung. Google scored about 20% margin.

Moral of the story is that Microsoft still keeps the most money from its revenue when all is said and done, and the revenue it received from its mobile operating system division grew to $546 million. 

Granted, we'd bet that most of it is patent-related royalties from Android manufacturers, rather than Windows Phone licenses sold to Nokia, HTC, Samsung and the others, but it is perhaps in line with what Google is actually making from Android at the moment. 

We'll see how this year develops, but Microsoft seemingly has a fighting chance to turn this mobile game into a three horse race by the time the holidays hit. What do you think?

source: Microsoft

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posted on 25 Jan 2013, 02:50 37

1. abdane (Posts: 476; Member since: 07 Oct 2011)


end of PC era ? LOL, not untill 100 years...

posted on 25 Jan 2013, 03:03 1

5. anywherehome (Posts: 971; Member since: 13 Dec 2011)


with bribing governments:
goo [dot] gl/FNz9f
bribing producers and manufacturers:
goo [dot] gl/EYqOl

is very easy to have high margins...

posted on 25 Jan 2013, 03:44 13

10. jcpwn2004 (Posts: 314; Member since: 18 Jan 2012)


exactly, I highly doubt there will ever be a day that people only own smartphones & tablets.

posted on 25 Jan 2013, 05:44 2

25. anywherehome (Posts: 971; Member since: 13 Dec 2011)


of course, but it is not important, important is this:
1) everyone does his work in 90 % with his mobile device at homes
2) PC is going to be just a truck - sometimes when my tablet doesnt handle my problem (very rarely, just HTPC or torrents...soon almost nothing for me)

so there are no big revenues in PC anymore (apps, ads, web services etc.)

this is important

posted on 25 Jan 2013, 05:52 10

28. tashreef (Posts: 476; Member since: 24 Nov 2012)


PC's are not made for facebook addicts or for casual gamer, you hardly use pc? that means you hardly work...

posted on 25 Jan 2013, 06:04 1

29. anywherehome (Posts: 971; Member since: 13 Dec 2011)


you probably can not read....read "at homes"

;)

posted on 25 Jan 2013, 08:01 8

41. RiseAgainst94 (Posts: 271; Member since: 03 Mar 2012)


90% of people do their work on a mobile device at home? What kind of work do these people do? I couldn't think of a single profession that would not want a PC for home use.
*English majors need a good keyboard and screen along with full programs, Engineers need graphics and processing power, etc

posted on 25 Jan 2013, 09:03 4

46. ZetanAlaz (Posts: 14; Member since: 05 Apr 2012)


But there are guys like me who still find PC is very useful.
I work around with design thingy programs like corel/adobe.
I know about adobe mobile, but it's not really enough for me, no no no no.
Thank you bye.

posted on 25 Jan 2013, 06:36 4

31. JeffdaBeat (unregistered)


There absolutely will be a day when people only own smartphones and tablets. Microsoft absolutely has the right idea in trying to pack a full fledged computer into a tab because it is literally the future. I say this because people said the same thing about wanting GPS, HTML browsing, and MP3 player in their smartphone. It will happen and these companies need to be sure they are on the correct side of things.

posted on 25 Jan 2013, 06:59 5

34. cdgoin (Posts: 367; Member since: 28 Jul 2010)


The standard Keyboard/Mouse/Screen layout has been developed for years, and won't go anywhere for a long time because you can not get the speed or comfort or accuracy out of tablet or phone.

Think about it.. how will engineers, artists, etc.. who need CAD and 3D capability.. going to do that on a small tablet?

Ergonomically how do you figure that out as well..?

I have 3 large screen and need a mouse for accuracy.. there is NO WAY the work I do can be replaced by a tablet or phone.

What about data entry.. Know anyone that can get 100 WPM on a tablet? Didn't think so.

posted on 25 Jan 2013, 09:31

47. protozeloz (Posts: 5378; Member since: 16 Sep 2010)


Actually artists do not use mouse for work as the mouse is really inaccurate, I've asked if a mouse was good, and many told me that if I own a PC I should get a drawing tablet instead because everything is more accurate and faster to do.

Now what's missing in tablets is the powerful apps, but you can mirror your work via HDMI to a big screen and draw from a tablet

posted on 25 Jan 2013, 07:43 1

39. remixfa (Posts: 13913; Member since: 19 Dec 2008)


With ya on that, though I think you have well more than a decade before you see PC's in homes really wane. Sales may slump a bit, but that's going to be more because today's middle of the road PC build is more than powerful enough for day to day usage for a long time to come. Only those with broken PCs or heavy gamers will continue to upgrade regularly. It's not like it used to be where a casual/business user would actually see big benefits to upgrading to the latest.

We passed the line of "need to upgrade for a much better day to day experience" a long time ago.

posted on 25 Jan 2013, 08:24 3

43. -box- (Posts: 3801; Member since: 04 Jan 2012)


I actually disagree. I see the future computing landscape where people's phones are also their computers, and they connect to peripherals wirelessly, over NFC more so than DLNA. It's already begun with Bluetooth everything and more peripherals coming for NFC, and with Windows Phone 8 sharing its kernel with its big computing sibling Windows 8. Cables will be a thing if the past except for secure transmissions, and folks will eventually spend about the same as they are now for an entire computer or laptop setup for everything to be wirelessly connected, and as that is saturated, prices will go down.

posted on 25 Jan 2013, 08:44

44. rusticguy (Posts: 2828; Member since: 11 Aug 2012)


As long as there are "real developers" who hate CLOUD ... PC era will never end.

posted on 25 Jan 2013, 05:42 5

23. wp7tribes (Posts: 52; Member since: 12 Aug 2011)


its just a delusional dream of apple

posted on 25 Jan 2013, 02:54 12

2. aries.phills (Posts: 133; Member since: 17 May 2011)


The old horse still got some juice in the inside.
Lol! Abdane you are so right.

posted on 25 Jan 2013, 02:56 9

3. KingKurogiii (Posts: 5599; Member since: 23 Oct 2011)


wow, Halo 4 was the best selling game of the franchise? very nice 343, very nice. Halo 4 is a very good game and what makes it even better was that it was surprisingly better than expected. o:

posted on 25 Jan 2013, 03:24 3

9. XPERIA-KNIGHT (unregistered)


is it really that good?? i been wanting to play it for awhile now... but you see my avatar loool

posted on 25 Jan 2013, 07:44 1

40. remixfa (Posts: 13913; Member since: 19 Dec 2008)


Yea, I'm borrowing it from a friend. Its surprisingly good. Crazy Cortana is much more entertaining. lol

posted on 25 Jan 2013, 11:29

50. speckledapple (Posts: 879; Member since: 29 Sep 2011)


it is trust me.

posted on 25 Jan 2013, 03:00 8

4. wendygarett (unregistered)


Funny, when Apple declare lower profits margin, android fans doesn't appreciate but keep shouting game over towards Apple

and now Microsoft declare higher profits margin, android fans will shout ms is a greedy company, I swear that!!!

profit margin up? Shout greedy... Profit margin down? Shout game over... Typical double standard...

posted on 25 Jan 2013, 03:13 10

6. abdane (Posts: 476; Member since: 07 Oct 2011)


and how did you know that ? i don't see any comments here of android fans that say anything about Microsoft that they are greedy, you just want to make yourself feel better that android fans bash everybody not just apple, LMAO, i'm happy for Microsoft; ANDROID FAN ! don't combine again please...

posted on 25 Jan 2013, 03:17

7. anywherehome (Posts: 971; Member since: 13 Dec 2011)


deal with truth.....bribing governments, manufacturers, sellers:
goo [dot] gl/FNz9f
Microsoft is a real evil here ;)

posted on 25 Jan 2013, 04:06 2

12. darkkjedii (Posts: 11479; Member since: 05 Feb 2011)


You're right Wendy. Exactly right.

posted on 25 Jan 2013, 04:33 5

14. joey_sfb (Posts: 2932; Member since: 29 Mar 2012)


I using Apple, Microsoft and Google services. I am currently in favour of Google as they do give value added service without me paying them a single cent. Microsoft is also great with the Xbox360 games, Halo series. Apple i like their design but that wearing out...

A phone is just a phone. I don't think there a need to be defensive, which your above posting made out to be.

posted on 25 Jan 2013, 05:48 1

27. jroc74 (Posts: 4841; Member since: 30 Dec 2010)


I'm almost in the same boat as you.

I really like Windows desktop OS....currently using 7 and XP. I really like Android phones. I like Apple....stock...dont have any anymore but I hope it can do down enough where I can get back in on the extreme low side.

posted on 25 Jan 2013, 04:58 3

16. TylerGrunter (Posts: 931; Member since: 16 Feb 2012)


Either that or is all in your delusional head... A there were not such comments in the thread made by Android fans.

posted on 25 Jan 2013, 05:36

20. wendygarett (unregistered)


See comments #15

posted on 25 Jan 2013, 05:41 3

22. jroc74 (Posts: 4841; Member since: 30 Dec 2010)


Buzz!! Wrong. No where in that post does it says MS is greedy.

Try again...

Maybe since you suggested it...it will happen....eventually. Usually...its best to wait til it actually happens first?

posted on 25 Jan 2013, 05:36 5

19. jroc74 (Posts: 4841; Member since: 30 Dec 2010)


Well wendy....I'm waiting for the posts from Android fans saying MS is greedy....

Still waiting.....this is an example of creating bias, faboyism where none exsist. Nice try tho.....I think?

posted on 25 Jan 2013, 07:11 1

36. jsdechavez (Posts: 706; Member since: 20 Jul 2012)


Some people here got it wrong, Microsoft got bigger profit margins not because their products were overpriced like Apple's. They got that from lesser spending in advertising for example. They spent less in selling to products compared to Apple and Samsung with all their stores and publicity which add up to costs and that take away from their profit margin.

posted on 25 Jan 2013, 23:58

58. Klevis (Posts: 5; Member since: 29 Dec 2012)


You forgot the lawyers. Even though in my opinion they should be counted in the advertisement department.

posted on 25 Jan 2013, 03:20 4

8. Nathan_ingx (Posts: 3012; Member since: 07 Mar 2012)


"Granted, we'd bet that most of it is patent- related royalties from Android manufacturers, rather than Windows Phone licenses sold to
Nokia, HTC, Samsung and the others..."
That just spoiled the entire article Mr Daniel P!!

posted on 25 Jan 2013, 04:00 1

11. Shino (banned) (Posts: 196; Member since: 23 Jul 2012)


Don't expect much thought put in PA articles, buddy. They send warning e-mails when you say yellowish, instead of asian for example, but never thought how undereducated is most of thier staff.

posted on 25 Jan 2013, 04:10 1

13. darkkjedii (Posts: 11479; Member since: 05 Feb 2011)


If u don't put too much thought into PA articles, then why even come to the site, scroll thru the articles, find one of interest, click on the article, read it, scroll down, click comment, then leave one. That's an awful lot for an article u put no thought into. I takes more thought to do all that, than to just go to another site... Hint hint.

posted on 25 Jan 2013, 05:44 1

26. jroc74 (Posts: 4841; Member since: 30 Dec 2010)


Hey...whats wrong with pointing that out?

It would be interesting info to know. I keep saying if they are making more money from Android manufactures than from actual WP sales.....they need to just stop and focus on the that. Wouldnt be a bad idea if thats the case IMO.

Nokia getting sales is good news tho...

posted on 25 Jan 2013, 04:37

15. darac (Posts: 2156; Member since: 17 Oct 2011)


Of course they have disgustingly high profit margins.
What are their expenses?!?
Just sitting back and collecting on their software monopoly.

Microsoft sucks

posted on 25 Jan 2013, 05:10 5

17. XperiaFanZone (Posts: 1324; Member since: 21 Sep 2012)


Glad to see MS doing well.

posted on 25 Jan 2013, 05:13 3

18. palmguy (Posts: 261; Member since: 22 Mar 2011)


Microsoft, activate pimp mode.

posted on 25 Jan 2013, 11:33

51. speckledapple (Posts: 879; Member since: 29 Sep 2011)


+1 for that.

posted on 25 Jan 2013, 05:38

21. jroc74 (Posts: 4841; Member since: 30 Dec 2010)


I'm shocked that Apple wasnt ahead of MS in actual revenue just based on the phone dept. alone.

posted on 25 Jan 2013, 05:43 2

24. MC1123 (Posts: 1242; Member since: 12 Nov 2012)


yes, MSFT gets more profit margin than apple! hello apple's software cannot be license! and MSFT gets a huge profit with its license, for example, a WP license is $40! that is huge! and a windows license is almost $100

posted on 25 Jan 2013, 06:18 3

30. stewie (Posts: 7; Member since: 25 Jan 2013)


"Granted, we'd bet that most of it is patent-related royalties from Android manufacturers, rather than Windows Phone licenses sold to Nokia, HTC, Samsung..."

Why do most editors from PA always have to put in either some "biased comments" or their "baseless doubt opinions" into every non-Apple related articles? I mean seriously, was this neccesssary to mention? Can't you just appreciate that a competing company other than Apple or Samsung is having some success?

Funny when Apple posted their numbers, PA would post an article with a title that's the complete opposite of the source title. PA's source, CNBC, clearly wrote "Revenue Falls Short, Shares Dive" at title, and PA changed it to "Apple reports record profits blah blah" and posted only the positive numbers from the source link.

posted on 25 Jan 2013, 07:00

35. threed61 (Posts: 130; Member since: 27 May 2011)


I'm not a fan of Apple, but there is something seriously wrong with their share price falling after reporting $54 billion sales/$13 billion profits in ONE quarter. It isn't PA's reporting that's wrong, it is CNBC and the other business news report-tards and anal-lysts who are wrong. All the same morons who tried to destroy the American economy.

posted on 25 Jan 2013, 07:16 1

37. jsdechavez (Posts: 706; Member since: 20 Jul 2012)


Apple shares are falling because sharesholders didn't earn as much as they were promised. Apple wasn't able to hit their targets. The momentum of their sales is slowing down and that signals them to lower the value, sell their shares while there is still some profit to rake in.

posted on 25 Jan 2013, 08:08

42. threed61 (Posts: 130; Member since: 27 May 2011)


I understand how it works, I don't like the way it works. The financial services industry is a parasite sucking the lifeblood out of the productive and innovative, and reducing the quality of goods and services while driving up the price.

posted on 25 Jan 2013, 06:42

32. firestarter2 (Posts: 16; Member since: 24 Jan 2012)


Hmm how much of this is from royalties on android / other phones? DOH

posted on 25 Jan 2013, 06:58 4

33. akishakoi (Posts: 65; Member since: 06 Dec 2011)


i must say that a lot of fanboys will be proven wrong when windows phone rise up this year.

posted on 25 Jan 2013, 07:39

38. papss (unregistered)


Agreed... I love the doom and gloom for M$ but as you can see that's just not the case.. Good for them non the less.. PA being PA I would expect them not to make a bias comment.. That's what they right?®©

posted on 25 Jan 2013, 08:45

45. rusticguy (Posts: 2828; Member since: 11 Aug 2012)


Yay ... time for monkey dance.

posted on 25 Jan 2013, 09:59

48. rusticguy (Posts: 2828; Member since: 11 Aug 2012)


But isn't the revenue also including money from license cost of OS that they rip the clients with? Android is free and no one but customers profit really from android. M$ and Apple both add margin s to OS license also and that explains thei higher "margin". It's nothing to be proud of. It just shows how end users are being "DUPED"

posted on 25 Jan 2013, 10:06 1

49. papss (unregistered)


Right because selling my personal information to whomever is soo much better

posted on 25 Jan 2013, 11:57 5

52. snowgator (Posts: 3210; Member since: 19 Jan 2011)


Okay everyone, lets calm down:

-Microsoft is not going anywhere, dumb to bring it up.
-Microsoft is neither pure as the driven snow, nor is it Satan's home base. Apple, Google, Samsung, Wal-Mart, GM, Ford, whatever. None of these companies get as large as they do being nice guys. They can do good things along the way, but you have to be a bit cut throat at this level.
-I am done with the patent crap. MS gets money from nearly every tech company due to their huge portfolio. Good for them. Pure profit to invest in their own OS. Sounds like good business to me.
-Why do any of us cheer for a company to fail?? Why cheer for less choice or innovative devices? I hope Apple, Google, RIM, Jolla, HP, and Samsung/Intel Tizen all succeed. It just helps drives WP to higher standards.

I just don't always get these postings.

posted on 25 Jan 2013, 12:05

53. Muzhhur (Posts: 248; Member since: 14 Sep 2012)


well, even this "great news" Microsoft nor Nokia bring the Lumia 920 to mexico, and thats it a terrible bussines ... (for me) XD

posted on 25 Jan 2013, 13:03

54. cripton805 (Posts: 923; Member since: 18 Mar 2012)


Well considering I have to pay $60 for a piece of paper with a code on it to play Xbox live, I can see how they will make a profit out of that...

posted on 25 Jan 2013, 13:20

55. papss (unregistered)


Cripton you lost me with "have to".. You don't have to but you clearly want to so stop complaining.. Plus its a far better service that what the others are providing.. Should it cost that much? Probably not but its only5 dollars a month so its not that bad

posted on 26 Jan 2013, 02:47

59. cripton805 (Posts: 923; Member since: 18 Mar 2012)


Yes. I have to if I want to play online. Yes, I prefer XBL. Now, I have a life and could only play every once in a while.

You make it sound like they dump every dollar we spend into XBL.
They are making major profit off of this and its the way Microsoft wants to rule. DLC is the future and will keep their pricing high. Netflix is BS though.

posted on 25 Jan 2013, 13:22

56. taz89 (Posts: 2014; Member since: 03 May 2011)


Didn't yesterday's Article say Samsung made 8+ billion in profit?

posted on 25 Jan 2013, 13:36

57. lyndon420 (Posts: 1743; Member since: 11 Jul 2012)


Must suck having others carry you financially.

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