Is it true that Microsoft consumer is getting low pinch by pinch as Apple slowly or maybe quickly dominating the technology market?
Five years ago, Microsoft claimed a total profits of $14.398 billion and reported an income of $6.589 billion. A week ago, the company’s sales revenue was $17.407 billion and reported a profit of $6.374 billion – that is just a slight decrease which can be or might be recovered in the coming months. Microsoft is still expanding, although not speedy. And they are truly generating less money.
In comparison with Apple, Five years ago they reported a total revenue of $7.1 billion and claimed a profit of $1.0 billion – the very first quarter with the biggest profit in company history. Last quarter, the company reported a total revenue of $47 billion and recorded $13 billion in profit – that is quite serious increase in profit with just 5 years.
It might be not comparable on the surface but it entails that something is happening. Apple has entirely dominated the technology market, while most of Microsoft’s progress nowadays is produced by the venture aspects. It appears that Apple is slowly crushing Microsoft and maybe not only Microsoft, as well as other competitors as a consumer technology company.
Microsoft is still generating a big amount of cash though as how the “billions” sounds from the consumer goods. But the reported quarterly firgures from Microsoft last week show what is gradually happening: the company is changing into an enterprise company.
Everybody got all thrilled that the Windows section really were able to improve last quarter. For the reason that much wider PC market continues to be at a standstill and Windows 8 is under screening, anticipations were very low. 4% increase was viewed as a big win.
However Microsoft in its entirety saw 6% increase from year to year when it came to sales revenue. It was not Windows alone causing the growth, it was the Servers & Tools Division which had 14% growth and Business Division which had 9% growth – as mentioned, it was the enterprise aspect of Microsoft.