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
- After Apple's record setting launch, analysts predict iPhone 6 will win over Android switchers
- Blockbuster start for iPhone 6 suggests Apple on track to sell 60M phones in December quarter
- iPhone 6 & Apple Watch reveals lived up to the hype for Wall Street, investors have high hopes for Apple Pay
- Samsung's 'rushed,' 'half-baked' announcements set Apple up for easy victory this fall, analyst says
- Apple's 'fab fall' predicted to help drive company's stock price to $123 per share