Microsoft falls behind Apple in quarterly profits for the first time in history

Microsoft falls behind Apple in quarterly profits for the first time in history
Microsoft's first financial report for 2011 is out as well and the results indicate something that people in the know have been anticipating for a while. It looks like over the first three months of this year, Microsoft generated a net profit of $5.23 billion, which for the first time in history is less than what Apple ($5.99 billion) accumulated over the same period of time.

Apple has already overtaken Microsoft, arguably its strongest competitor, in terms of quarterly earnings – that happened six months ago for the first time ever. Furthermore, thanks to the booming iPhone sales and the sky-high interest in the iPad, Apple's quarterly revenue reports just keep on showing record-breaking results. Until now, Cupertino was having a hard time catching up on net profits since Microsoft's products simply generate higher gains with every unit sold in comparison with Apple's. Taking a closer look at both companies' quarterly reports reveals that Microsoft still maintains its net profit margins near the 32% mark while Apple only averages about 24%. However, if Microsoft keeps on overlooking the steadily rising tablet market, as it seems to be doing so far, it would not be surprising to see Apple's lead in the net profit section grow even further.

source: Yahoo! News via TUAW

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19 Comments

1. bossmt_2

Posts: 459; Member since: Oct 13, 2009

Not shocked. WinMo is dying while Apple is making money hand over fist off of the iPhone. iPad is eating into Netbook sales and to a lesser degree notebook, and all the while Apple charges a premium fee.

12. Lucas777

Posts: 2137; Member since: Jan 06, 2011

yes... they get the money, but not the marketshare. percentages might not be their goal, but this is why they are not known for gaming... developers go the the biggest market

14. Eingild

Posts: 203; Member since: Apr 19, 2011

What I don't like about Mac products is that they offer PCs with low system specifications partnered with premium prices.

2. cellgeek82

Posts: 518; Member since: Dec 20, 2009

This shouldn't surprise anyone. If Windows was actually reliable they might have a chance. Apple makes top quality, reliable products. In my opinion, the reason I still acknowledge Microsoft at all is for the gaming industry. Gaming is still better on PC because of compatability and of course the Xbox console. If Apple were to take over the gaming industry Microsoft will be a sinking ship.

7. ps1001

Posts: 65; Member since: Dec 14, 2010

tru... and i think thats the next apple step.... gaming.... ms should make new strategy for competitions sake, cause if apple gets the piece of gaming profits- they'll be on top of everything

8. cellgeek82

Posts: 518; Member since: Dec 20, 2009

They're already showing what they're capable of with iOS. What's next? A gaming console? iGame, iPlay, MacArcade? Hmm... I'd get it. I still love the xbox, but not the system freezes or red ring of death.

3. Phullofphil

Posts: 1822; Member since: Feb 10, 2009

net books suck because they have been pretty much the same since two years ago. I bought one over a year ago and it is still better than or equal to 90 percent of all netbooks

4. deago78

Posts: 172; Member since: Oct 08, 2009

Maybe the Microsoft powerhouse will finally start sinking some substantial resources into developing some products to please the "simple" consumer. Apple has been taking advantage of them since the day they opened their doors so now its time to see Microsoft actually step into the ring as opposed to just booing from the stands.

5. tedkord

Posts: 17410; Member since: Jun 17, 2009

The "simple" customer...?

6. snowgator

Posts: 3621; Member since: Jan 19, 2011

Yeah I know .... deago may not have meant it, but that does seem a tad condescending, don't it?

9. remixfa

Posts: 14605; Member since: Dec 19, 2008

no, i think he meant "apple products are designed to be simplistic because most apple users dont know crap about electronics". :) MS is still like 10x bigger than apple over all. Reports like this are deceptive as Apple has a much smaller concentration of products than MS. MS has many profitable divisions and probably a few that werent so profitable. Also, what exactly was released by MS that was new in the last quarter? Nothing. Apple relaunched the Ipad2. Still, its not like either one are crying over their profits.. lol

10. brad unregistered

Who cares. APPLE: FAIL GOOGLE: WINNING!!!!!!!!!!!!

13. Lucas777

Posts: 2137; Member since: Jan 06, 2011

yaaaa....... ur just mad cause apple beats microsoft AND google... hahaha

15. Eingild

Posts: 203; Member since: Apr 19, 2011

How can you say so? Yes they may have beaten Microsoft in terms of profits and all these money stuffs. But does that mean that Apple also beat Microsoft in terms of performance and useability? Plus Microsoft is only selling Operating Systems. Their profit comes from their OS alone. Unlike Apple whose profits came from a lot of things such as iPhone, iPad and Macbooks.

17. remixfa

Posts: 14605; Member since: Dec 19, 2008

umm.. Xbox, MS Office, Windows phone 7, silverlight, directX,... on n on n on n on the biggest difference is MS is a multi national multi armed mega corperation that has its hands in thousands of things. Not things it does all are profitable. Apple is a much smaller company that is focused on osX,iOS,iTunes, and iPods, and their accessories. They dont actually manufacture a single thing themselves and always price everything way above its actual worth to have "percieved quality".

18. Lucas777

Posts: 2137; Member since: Jan 06, 2011

ya honestly microsoft has a crapload of stuff... that is such an invalid argument... and yes... they have beaten microsoft in terms of performance and useability... have they beat it in marketshare? no.

11. IOS5 unregistered

The think it's change and Apple has the best quality products.

16. dandirk unregistered

Apple vs Ms is like BMW vs Toyota MS is the work horse, cheap and used by the masses. More people use it, more parts, repair shops, 3rd party add-ons etc. Apple is the BMW, more expensive smoother ride but limited and more costly repair. Less after market parts, higher insurance etc. Apple has done wonders with marketing 75%, creating the "brand", they really have also done a great job designing a device that works consistently for the average consumer 25%. Kind of on oxymoron cause you would expect more confort features in a premium brand. Apple makes it work though.

19. IOS5 unregistered

It's like Lexus vs honda Accord this days lots of people prefer Lexus over the Accord cause the lexus has the powerful engine and one of the most fantasy car ever with lowest petrol Consumption.

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