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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58 Comments

56. taz89

Posts: 2014; Member since: May 03, 2011

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

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

59. cripton805

Posts: 1485; Member since: Mar 18, 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.

54. cripton805

Posts: 1485; Member since: Mar 18, 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...

53. Muzhhur

Posts: 261; Member since: Sep 14, 2012

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

52. snowgator

Posts: 3630; Member since: Jan 19, 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.

49. papss unregistered

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

48. rusticguy

Posts: 2828; Member since: Aug 11, 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"

45. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Yay ... time for monkey dance.

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?®©

33. akishakoi

Posts: 65; Member since: Dec 06, 2011

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

32. firestarter2

Posts: 16; Member since: Jan 24, 2012

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

30. stewie

Posts: 7; Member since: Jan 25, 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.

35. threed61

Posts: 259; Member since: May 27, 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.

37. jsdechavez

Posts: 818; Member since: Jul 20, 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.

42. threed61

Posts: 259; Member since: May 27, 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.

24. MC1123

Posts: 1256; Member since: Nov 12, 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

21. jroc74

Posts: 6023; Member since: Dec 30, 2010

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

18. palmguy

Posts: 991; Member since: Mar 22, 2011

Microsoft, activate pimp mode.

51. speckledapple

Posts: 902; Member since: Sep 29, 2011

+1 for that.

17. XperiaFanZone

Posts: 2282; Member since: Sep 21, 2012

Glad to see MS doing well.

15. darac

Posts: 2156; Member since: Oct 17, 2011

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

8. Nathan_ingx

Posts: 4769; Member since: Mar 07, 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!!

11. Shino

Posts: 196; Member since: Jul 23, 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.

13. darkkjedii

Posts: 31816; Member since: Feb 05, 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.

26. jroc74

Posts: 6023; Member since: Dec 30, 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...

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: 31816; Member since: Feb 05, 2011

You're right Wendy. Exactly right.

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