Fantastic article about Apples dominance over Microsoft

I just read an article that was absolutely fantastic.

It was by Paul Thurrott and he talks about the relationship between Microsoft and Apple and how Apple has recently become the dominant company.

Some excerpts..

And Apple, embarrassingly, has now surpassed Microsoft in every meaningful way possible. In May 2010, the company surpassed Microsoft’s market cap, and while the two briefly bobbed back and forth in the first half of the year, Apple has taken off like a rocket thanks to its soaring stock price. Microsoft? As has been the case for the past many years, the software giant’s share price has remained stagnant—a growth stock no more.

Then, in the final calendar quarter of 2010, Apple’s revenues of $26.74 billion surpassed Microsoft’s revenues of $19.95 billion, though Microsoft’s profit of $6.63 billion barely eeked ahead of Apple’s $6 billion. The die was cast, however, and eager Apple fans rubbed their hands in anticipation of a future quarter where Apple would financially leap past Microsoft for good.

That may have just happened. In the most recent calendar quarter (January to March 2011), Apple’s net income and revenues ($5.99 billion and $24.67 billion, respectively) handily beat Microsoft’s results ($5.23 billion and $16.43 billion, respectively).

And there’s reason to believe this is a permanent trend and not an aberration. Whereas Microsoft’s core markets are aging and even old-fashioned—desktop and server software like Windows and Office still account for 85 percent of the company’s revenues—most of Apple’s revenues come from product lines that didn’t even exist five years ago: the iPhone, iPod touch, and iPad. And while both companies are struggling to make the move to cloud computing—Microsoft through cloud-hosted versions of its legacy servers, and Apple via a coming consumer-oriented service called iCloud—it is clearly Apple that has the edge overall.

Read the full article here

  • ARR8

    NOOOOOOO!

  • xinu

    Nice article. I think its worth keeping in mind that about 50% of world wide users use pirated microsoft software, hence these users are unaccounted for in official statistics. Looking at marketshare and industry “importance” if you like, microsoft is still a more dominant and powerful, Windows operating systems still provide the dominant gaming and office platforms and their servers have far more powerful capabilities than osx server. Microsoft is still a major player, whether you like it or not. (the way i see it, apple is becoming a consumer company, microsoft is becoming a enterprise supplier). [I could have propably formulated this agrument a little better ;].

  • marc3l

    Speaking of apple, who is the winner of the april-sweeptake of the iPad 2?

  • http://www.internetmacmarketing.com Tim Arends

    Now I understand why MS was so hot about Apples Mac vs. PC campaign!