Apple Beats Microsoft’s Third Quarter Revenue


Apple keeps taking things away from Microsoft. 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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