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Apple Beats Microsoft’s Third Quarter Revenue

Apple (s aapl) keeps taking things away from Microsoft (s msft). First, it was smartphone market share, knocking down poor Windows Mobile. Then, it was size as measured by market capitalization, with Apple moving into second in May. Now, it’s quarterly revenue.

Apple made more than Microsoft during the last calendar quarter with a $20.34 billion quarter, as it announced last week, while Microsoft announced its total of only $16.20 billion just today. It’s still a record quarter for Microsoft, up 25 percent from last year, and Microsoft  has higher profit margins because it remains a software-focused company, but the achievement is noteworthy nonetheless.

It’s the first time since Steve Jobs’ return to the company that Apple has beaten Microsoft in revenue, so I’m sure Ballmer and Co. are taking note. The margin by which Apple won is a big one, too, and though many predicted Cupertino would make more than Redmond at some point this year, few anticipated such a large gap so early.

Will new products like Windows Phone 7 and Xbox Kinect help Microsoft regain some of that ground? Time will tell, but Apple’s lead may already be insurmountable.

UPDATE: This article originally stated that it was the first time Apple beat Microsoft in its history. In fact, Apple’s revenue exceeded that of Microsoft until around the mid-90s.

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6 Responses to “Apple Beats Microsoft’s Third Quarter Revenue”

  1. Claude Filimenti

    Check your history Darrell, from the mid 1970s until the 1990s Apple was much bigger than Microsoft both in sales and in profit.

    Check out the numbers at

  2. bill gates

    what good is more revenue when MS exceeds apples profit by over 1 billion dollars. apple sells alot yet does not make that much money. way overvalued. how will they pay the rent? maybe ms can loan them a bil.

    • “way overvalued”

      Tell that to shareholders of Apple. They will get a good laugh! MS has stayed at about 25-29 for years. Glad I dumped my MS stock after the Vista launch.

      MS = yesterday’s technology, today!

  3. Love them or hate them, Apple makes amazingly desirable products. It is a confusing time for folks cautious about Apple. The extent to which they are overvalued becomes incredibly difficult to ascertain when there is that much substance too. Personally, while I’m skeptical of their ability to keep pace with their own hype in the long term, they certainly do play to win.