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

FEATURED VIDEO

58 Comments

1. abdane

Posts: 507; Member since: Oct 07, 2011

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

5. anywherehome

Posts: 971; Member since: Dec 13, 2011

with bribing governments: goo [dot] gl/FNz9f bribing producers and manufacturers: goo [dot] gl/EYqOl is very easy to have high margins...

10. jcpwn2004

Posts: 314; Member since: Jan 18, 2012

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

25. anywherehome

Posts: 971; Member since: Dec 13, 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

28. tashreef

Posts: 476; Member since: Nov 24, 2012

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

29. anywherehome

Posts: 971; Member since: Dec 13, 2011

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

41. RiseAgainst94

Posts: 281; Member since: Mar 03, 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

46. ZetanAlaz

Posts: 14; Member since: Apr 05, 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.

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.

34. cdgoin

Posts: 614; Member since: Jul 28, 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.

47. protozeloz

Posts: 5396; Member since: Sep 16, 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

39. remixfa

Posts: 14605; Member since: Dec 19, 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.

43. -box-

Posts: 3991; Member since: Jan 04, 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.

44. rusticguy

Posts: 2828; Member since: Aug 11, 2012

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

23. wp7tribes

Posts: 52; Member since: Aug 12, 2011

its just a delusional dream of apple

2. aries.phills

Posts: 161; Member since: May 17, 2011

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

3. KingKurogiii

Posts: 5713; Member since: Oct 23, 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:

9. XPERIA-KNIGHT unregistered

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

40. remixfa

Posts: 14605; Member since: Dec 19, 2008

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

50. speckledapple

Posts: 902; Member since: Sep 29, 2011

it is trust me.

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...

6. abdane

Posts: 507; Member since: Oct 07, 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...

7. anywherehome

Posts: 971; Member since: Dec 13, 2011

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

12. darkkjedii

Posts: 31104; Member since: Feb 05, 2011

You're right Wendy. Exactly right.

14. joey_sfb

Posts: 6794; Member since: Mar 29, 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.

27. jroc74

Posts: 6023; Member since: Dec 30, 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.

16. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

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

20. wendygarett unregistered

See comments #15

22. jroc74

Posts: 6023; Member since: Dec 30, 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?

19. jroc74

Posts: 6023; Member since: Dec 30, 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?

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.