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Apple Beats Microsoft in First Quarter Profit


Six months ago, Apple surpassed Microsoft in quarterly revenue for the first time in nearly 15 years, marking a milestone on Apple's tremendous performance in recent years. But despite being passed by Apple in the revenue metric, Microsoft continued to hold off Apple in quarterly profits due to the high profit margins achievable with its software business.

That finally changed this past quarter, with Microsoft today announcing net profit of $5.23 billion for the first calendar quarter (third fiscal quarter) of 2011. Apple last week reported profits of $5.99 billion over the same period, which corresponded to the company's second fiscal quarter of 2011.

Apple has passed its longtime rival Microsoft in a number of metrics over the past year, beginning with market capitalization back in late May 2010. Apple's market cap is now nearly $100 billion higher than Microsoft's.

Top Rated Comments

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44 months ago
Apple "beats" Microsoft?
But who has the strongest dad? :rolleyes:
Rating: 7 Votes
44 months ago

Apple "beats" Microsoft?
But who has the strongest dad? :rolleyes:


ROFL! I totally see what you're saying. Why can't people just avoid fanboyish behavior? Both companies make some great products. Both companies make bad products too. *shrugs*
Rating: 6 Votes
44 months ago

Microsoft is DEAD. And so is Google.

GO APPLE!


Wow! Really! No need to be afraid, we can all get along. There is space for everyone here.
Rating: 5 Votes
44 months ago

Microsoft is DEAD. And so is Google.

GO APPLE!


Microsoft just posted a record quarter.

"Microsoft reported strong third-quarter sales and earnings, as the software giant weathered slowing PC sales with strong performances from its Office and Xbox businesses.

Net income in the company's fiscal third quarter climbed 31 percent to $5.23 billion on sales of $16.43 billion, a 13 percent gain.

"We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses," Microsoft's chief financial officer, Peter Klein, said in a statement. "Consumers are purchasing Office 2010, Xbox, and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications."

Read more: http://news.cnet.com/8301-10805_3-20058406-75.html#ixzz1Kqvp0N71"


Just because Apple's profit was higher doesn't dispel the end for Microsoft or Google. Every company in American except one made less profit that Apple, and trust me, they aren't all "doomed or Dead"....

Grow up Mr. Lawyer!
Rating: 5 Votes
44 months ago
This pretty much sums it up.
Rating: 4 Votes
44 months ago

You are probably new here, right? :rolleyes:


Yes I am. And fairly new to Apple (switched to Mac in 2006 and iPhone in 2007).

Does being new here mean that I have to learn how a corporation that just recorded at record net income of $5.23 billion is "DEAD"? If so, please enlighten me.

I have worked in finance for 35 years and only hold a Bachelors degree in Buisiness, but I'm sure from your response that you (and others here) know more about business than me. So please explain how the earnings report is an indication of impeding doom.... I'm always willing to learn from a group of experts!
Rating: 4 Votes
44 months ago
I hope there are extra expensive chairs lying around Ballmer's office today
Rating: 3 Votes
44 months ago
So, are we supposed to be proud about this? And if so, why has the same 'accomplishment' earned Microsoft the 'M$' reputation? Double morals?
Rating: 3 Votes
44 months ago

Apple and MS haven't competed against each other since 1993. And back then it was still just on the OS.


Apple has always competed against the entire Wintel PC market...not just Microsoft's Windows OS.

It's all about 2 different business models, essentially centering at the OS:

1)Apple makes, sells, supports the Mac OS and Mac hardware

2)Microsoft, on the other hand, simply creates the OS and licenses it to hardware vendors.

Of course Microsoft is unhappy with this breaking news but they, again, are 2 completely different business models. One could write a small book on the topic.

Why is it all the intelligent posts come from people without solely Apple products littering their signature?
Rating: 3 Votes
44 months ago



If you compare their investment in R&D to what they manage to churn out, it's pretty sad.


Microsoft doesn't really play in the consumer / gadget / toy market, which simply means that you don't get to see most of their products unless you work in a corporate data center. And unlike Apple, Microsoft -has- data center / server products that people WANT to use and that are years ahead of the pack (Sharepoint Portal Server, Exchange Server, SQL Server, Terminal Services, just to name a few) - and a LOT of their RD goes there.

Also, nobody here should kid themselves - Microsoft still OWNS the desktop and office suite markets. Around a BILLION computers run their software, and even most Macs are dead in the water without Microsoft Office and/or Microsoft Windows (in Boot Camp, Parallels, Fusion, VirtualBox).

So Apple was more profitable in the last quarter. Big deal. Somebody with enough time on their hands might want to analyze the spending behavior and amount of staff and level of salaries to find out -WHY- that was the case. Maybe the guys at Microsoft have higher salaries and more vacation. Maybe Ballmer put more money into RD and marketing than in the last quarter. Maybe they bought more startups than before.

Actually, who cares. Both companies are extremely profitable, but Microsoft has been profitable for a couple of decades more than Apple (who almost died in the 1990s while Microsoft was making more money than anybody else).
Rating: 3 Votes

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