Saturday, October 25, 2008, 03:00 pm PT (06:00 pm ET)
Apple earnings, profits, and cash embarrass MicrosoftWhile Microsoft executives like to talk about Apple as an insignificant company with less than 5% of the worldwide market share of all PCs and servers sold, the Mac maker now has more cash than Microsoft and earns more than half of its profits and over three fourths its revenues.
For the quarter ending in September, Microsoft released revenues of $15.06 billion, net profits of $4.37 billion, and a reserve of cash, cash equivalents, and short-term investments that added up to $20.7 billion.
Apple reported $7.9 billion in revenues and $1.14 billion in net profit, but those numbers don't include most of its iPhone business, which is hidden away in subscription accounting under GAAP rules. For that reason, Apple also released its real earnings: $11.68 billion in revenue and $2.44 billion in net profits. The company also reported a cash position of $24.5 billion.
Microsoft's quarterly revenues grew by 9%, compared to Apple's non-GAAP revenue increase of 75.1% year over year.
On Topic: Investor
- 'Now is the time to invest' in Apple ahead of new product launches, Morgan Stanley says
- SV150: Apple, Inc. earns more than HP, Google, Intel & Cisco combined
- Wells Fargo defends 'market perform' rating on Apple stock, says company is in midst of transition
- JP Morgan sees Apple further eating away at Windows PC market with sub-$1000 iOS notebook
- Supply chain data suggests Apple's March quarter could be stronger than Wall Street expects