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Apple vs. Microsoft, By the Numbers

CWmike writes "It's a matter of opinion which company makes the better operating system or is likely to grow its smartphone market share. But numbers don't lie — or exaggerate. A little less than a year ago, Wall Street reached a Microsoft vs. Apple milestone: for the first time, Apple's corporate value surpassed Microsoft's. What has happened since? With Apple due to report its latest quarterly earnings on Wednesday — Microsoft reports its numbers next week — we look at some recent numbers, as well as data over time."

44 of 296 comments (clear)

  1. Windows phone to take off? by symbolset · · Score: 2

    Yeah, that's gonna happen.

    --
    Help stamp out iliturcy.
    1. Re:Windows phone to take off? by crafty.munchkin · · Score: 2

      Reviews have generally been quite positive, and if they can use their market share from Windows and XBox and create some kind of easy porting method it might become at least a moderate success. It will probably take a couple of years before the platform can actually compete though, if that ever happens.

      People will say anything for enough money.

      --
      ... wait, what?
    2. Re:Windows phone to take off? by Karlt1 · · Score: 2, Informative

      My Bottom Line: Microsoft is still more profitable

      A company stock price is based on among other things the expected growth of the company. Apple is growing faster than MS.

      On the flipside the future hold uncertainty since everyone keeps pointing out that Microsoft is expected to beat Apple in marketshare

      Even if you do believe that someone can magically predict the future, MS makes a whopping $12 on each WinMo license sold. Apple makes a $265 profit on each iPhone sold.

      and Android has already started killing it in the market.

      Not really, Apple sells more iOS devices than all Android devices combined (iPhone,Touch, iPad) and makes close to 50% of all the profit in the mobile phone industry.

    3. Re:Windows phone to take off? by RobertM1968 · · Score: 2

      Reviews have generally been quite positive, and if they can use their market share from Windows and XBox and create some kind of easy porting method it might become at least a moderate success. It will probably take a couple of years before the platform can actually compete though, if that ever happens.

      People will say anything for enough money.

      And that is exactly what's happening. Windows Mobile marketshare is decreasing. While that may largely be due to people defecting from WM6.5 and earlier, they sure as heck arent picking up WP7 - and WP7 sales cant make up for that slip in marketshare (assuming it is actually the case, that WM6.5 defections are the issue). It explains why Microsoft REFUSES to release end user/activation numbers and started with citing oem sales to stores... and when that number turned abysmal, they started citing number of licenses sold to OEMs for phones they may or may not ever actually make.

      Add to that, Microsoft has been caught, over the last 2.5 DECADES, buying/paying for favorable reviews (hello to some of you Ziff Davis greedy bastards who went as far as printing Microsoft's marketing materials for Win95 as actual reviews - and still do such things to this day).

      No, I am not a troll... all of this stuff has been covered on /. numerous times. And those of you familiar with such things as the Windows vs Linux TCO's Microsoft bought have a tiny inkling of some of the stuff I'm talking about.

      I'll make things a little easier for the idiots bought and paid for at Gartner and IDC by Microsoft (ever dig to find out how many such "studies" Microsoft has "commissioned" from them - or read the requirements of them that are in place to skew the results a certain way? If not, go do some digging if you are bored)... ah... I digress... I'll make it easy for them (ie: reality): there are tons of reports online just like this one: http://vista.blorge.com/2011/03/08/microsofts-windows-phone-7-market-share-takes-a-dive/

      That recent one cites even WP7 declining. In the end, it's another market Microsoft will fail in, after nice losses in their other such attempts in that same market. Guess they are worth even less than the CW people think.

  2. No by theweatherelectric · · Score: 5, Funny

    But numbers don't lie — or exaggerate.

    That's a lie — and an exaggeration.

  3. Meh by geek · · Score: 2, Insightful

    Apple stock is way over priced and has been for a while. Microsoft on the other hand is on the decline in almost every way. Not sure I really care about either company.

    1. Re:Meh by getNewNickName · · Score: 4, Insightful

      Overpriced compared to what? Compared to Microsoft? Apple has year-over-year EPS growth numbers that are over twice as high as Microsoft's. Stock valuation is based on expected future earnings growth. If you said that Google or Amazon are way over-priced compared to Microsoft you would have a legitimate argument since their earnings growth thus far has only matched Microsoft yet their P/E ratio paints a different picture. Let's focus on facts instead of vague hand-waving.

    2. Re:Meh by rolfwind · · Score: 5, Informative

      It's P/E is not extravagant or that high.

      MSFT has plateaued since the early 00s because people have seen it really can't innovate beyond OS/Office line. The whole Xbox division has lost money to gain it's prominent position this generation of consoles. The Zune was mostly meh. It came out early in tablets/smartphones but despite that couldn't make anything people needed to have.

      The day Steve Ballmer steps down is the day that stock will start gaining again. Even better if they get a CEO with an iota of division and the power/desire to kill the bureacracy that is stifling that company. I wonder how much of their workforce are just leeches who have a cushy job that produces little/no value to the company.

    3. Re:Meh by ElBeano · · Score: 2

      You were modded up as insightful, but for many straight quarters, Apple has been performing very well. Their stock price reflects real world, historical performance. If you happen to know that they are headed for an earnings drop, please tell us how you know.

    4. Re:Meh by Anonymous Coward · · Score: 3, Interesting

      Apple would have to quadruple their revenue to make their revenue meet their market capitalization. Does that not sound overvalued to you?

    5. Re:Meh by dougmc · · Score: 3, Insightful

      Do a little research or maybe learn a bit about simple Wall Street evaluation before you spout off nonsense like AAPL being over priced. The price off the stock does not have anything to do with that.

      *blink*

      You don't think a company's stock price has anything to do with a company's stock being overpriced?

      (I'm not saying I agree with any claims that the stock is overpriced, but your statement is ludicrous.)

    6. Re:Meh by joocemann · · Score: 2

      I had the latest Internet explorer that was available through windows update. I'm pretty sure it was newer than IE6.

      That's weird how you assumed it was IE6 even though I never said it was. I just checked the site in Firefox 3.5.7 and it is still screwed up looking as I had described.

      What was your point again? To make an ass of yourself with assumption?

    7. Re:Meh by symbolset · · Score: 2

      Price is only one component. Berkshire Hathaway shares have a high price, but there is a strong case for them being a good value. Apple PER less cash is ridiculously low for a company that's growing profits this fast and has so much more market share to gain in markets that are themselves growing quickly.

      --
      Help stamp out iliturcy.
    8. Re:Meh by Daniel+Phillips · · Score: 2

      At P/E of 18.9 I would have to disagree with you. Unless Apple's earnings were to collapse dramatically in the short term, 18.9 is a fairly modest multiple for a tech company showing strong growth and ownership of multiple market segments. Yes, Android is coming on strong but that negative is already priced in, otherwise Apple's P/E would be somewhere in the mid 20's. Note: I am in no way an Apple groupie. I detest Apple's corporate culture and getting anywhere near an Apple product makes me ill. But a fair analysis is a fair analysis all the same.

      By the way, having exceeded Microsoft in market cap, Apple would now seem to aspire to exceed Microsoft in moral bankruptcy. Just a thought.

      --
      Have you got your LWN subscription yet?
    9. Re:Meh by jo_ham · · Score: 2

      Considering that they released the iPad 9 months ago, in one of the most successful product launches in history, and were able to continue to grow their profits in a global economic downturn, and continue to grow their smartphone user base, and continue to increase their computer market share, I think that's not too far away.

      Despite many claims that they'd be a flash in the pan, every year they have continued to grow.

    10. Re:Meh by ceoyoyo · · Score: 2

      According to the article Apple has septupled their profits since 2006, so a mere doubling doesn't seem particularly farfetched.

    11. Re:Meh by symbolset · · Score: 2

      So we're disassembling web pages now just to follow a hyperlink? Somehow I doubt this was what Tim Berners-Lee envisioned.

      --
      Help stamp out iliturcy.
    12. Re:Meh by brunes69 · · Score: 4, Informative

      P/E is not everything. Compared to GOOG or MSFT, AAPL's margins are horrid.

      AAPL's gross margin is currently at 38%. GOOG is 64% and MSFT is 79%.

      That is just one example.

    13. Re:Meh by atlasdropperofworlds · · Score: 2

      That site renders fine in IE 9, FF 4, and Chrome 10.

      What problem are you having?

      Also, XP is 10 (yes TEN) years old now. Think about that: You're using an OS from the last decade, and complaining about how much you have to install to use modern software.

      FFS, if you must use Microsoft, at least try to keep up to date before you go on criticizing them. They've supported your OS for a full decade, and they're still patching it. Hell, they even release MSE for it, so you have free antivirus. For all the things they're doing wrong, which many seem so apt to point out, they are actually doing several things very well: Legacy support, free lightweight AV, free cloud/sync. Not even Linux gives you free cloud storage. Do their products work perfectly in every way? No. Do they work well enough? Yes, absolutely. They're also improving, and not too slowly.

    14. Re:Meh by prockcore · · Score: 2

      Not even Linux gives you free cloud storage.

      I agree with the rest of your post, except this. Ubuntu One gives me 2gigs free cloud storage.

    15. Re:Meh by graymocker · · Score: 4, Insightful

      Apple's margins are bad for a software company. Apple's margins are exceptional for a hardware company. (HP, HTC, and RIM's margins are all in the 10-20% range. They would kill for a 38% margin.)

      Judging purely from the financials, it's almost as if Apple were a hybrid software/hardware company or something.

  4. Yep... by E+IS+mC(Square) · · Score: 4, Informative

    And Linux has already beaten them both in server,mobile devices and embedded systems market. What's your point again?

    1. Re:Yep... by the+linux+geek · · Score: 2, Informative

      Windows ships more servers by both revenue and volume than Linux. Mobile devices, if you mean consumer electronics, are largely Linux, but embedded systems (especially lower-end ones) are not.

    2. Re:Yep... by the+linux+geek · · Score: 3, Informative

      Very few. Most servers from major OEM's (HP, IBM, Fujitsu) which make up a large majority of server sales will include an OS, whether its Windows, Linux, or a proprietary system.

    3. Re:Yep... by StuartHankins · · Score: 2

      HP Blades ship with no OS as default. It's only their lower-end DL- and ML- servers and SOHO stuff that ships with an OS preinstalled.

    4. Re:Yep... by westlake · · Score: 2

      And Linux has already beaten them both in server,mobile devices and embedded systems market. What's your point again?

      It depends on how you define "Linux."

      The community-oriented Linux client distribution is all but dead.

      The smartphone and tablet markets are being defined by Apple and the iOS, Google and Android, Microsoft and Windows.

      The Internet Suite for your HDTV , video game console or set top box may run under an embedded Linux OS.

      But the content - music, video, and games - will be purchased from your Vizio or Samsung app store, distributed and protected using the latest and greatest in licensed codecs.

      The geek will have "won" the victory for "openess" in the browser and lost the war.

    5. Re:Yep... by tehcyder · · Score: 2

      This statistic doesn't include what I do: buy a server that happens to come with Windows installed, wipe it, and put Linux on it. Does anybody else do that?

      No, I think you're pretty much unique. Most people on slashdot have barely heard of Linux, never mind actually installed it on a server. We're pretty big on Windows 95 for production environments, although some of the hardcore gamers use Mac OS9.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  5. Agreed. by mosb1000 · · Score: 4, Interesting

    I'm going to have to agree. I don't know anyone who is planning to get (or is excited about the possibility of getting) a windows phone. Add the fact that many (most) companies are now supporting iOS and Android on their corporate networks, and what you come up with is a market already filled with devices superior to anything Microsoft could offer. No one is going to willingly downgrade to a windows phone.

    1. Re:Agreed. by UnknowingFool · · Score: 2

      That's the problem I see with WP7 getting more marketshare. MS is trying to appeal only to consumers who are their current customers. It's not trying to get more general consumers. Is Xbox Live integration a good feature? Yes, if you already have it. If you're talking about my grandmother who has doesn't care for a "YBox" or "PlaySituation" or a "Whey", it's no good for her.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    2. Re:Agreed. by terjeber · · Score: 4, Interesting

      No one is going to willingly downgrade to a windows phone.

      Just for the record, I upgraded from iPhone to WP7 this year. A little by accident. Developing for mobile I have to keep tabs on what goes on, so I have an iPhone 3GS, a Galaxy Tab and I got a WP7 phone just before Christmas. I was not expecting it to be my main phone, which at the time was the iPhone, so I just got the cheapest they had, the LG.

      I was immediately impressed with the development environment which is at least a generation ahead of Android and even more ahead of Apple (gawd I hate Objective-C). I doodled some apps. Worked on it for a while. I found my self grabbing the WP7 phone more and more and suddenly I found I preferred it over the other two.

      Does the phone have shortcomings? Fewer now that the first update is out, but sure, it does. It is still a significantly improved user experience over iOS though. Given what we saw at Mix, the Microsoft lead over Apple in phone usability will take another significant leap forward. Honestly, nobody innovates on the phone like Microsoft at the moment. It took a while to get started, but as some of the other Microsoft teams, the WP7 team is world class with a great product.

      Sadly I think a number of developers, particularly of the ilk that reads /. are making judgements mostly on their own superstition. Microsoft of 2011 is not Microsoft of 1999. There is a significant improvement, and many Microsoft products, like C# - which has jumped far, far ahead of Java now, .NET MVC and others, are really quite good. In my current job I integrate JBoss and Microsoft solutions. Working in Eclipse on Linux is a huge step backwards compared to VS2010 on Windows.

      Before concluding I am a MS fanboi, I have been working almost exclusively in Java since early 1997 and was part of one of the very early companies to make serious money on a commercial Java product. In the beginning we had to carefully wrap our Java stuff in C front-ends to make sure our customers didn't notice it was Java. If they had, at the time they would have rejected it, since everybody "knew" at the time that Java was too slow to use for anything real.

  6. People won't be buying Windows Mobile... by joocemann · · Score: 4, Insightful

    ... because they *like* or *prefer* it.

    They will (mostly) be buying it because they don't know any better, or that it is "The OS" that is present on the phone they were sold.

    Windows Mobile has been and always will be a trash OS. Glitchy, crashy, unreliable, clunky, odd..... I have multiple years of experience and wished for something akin to iOS or Android the whole time.

    ---I fear the only way they can predict WM will outrun iOS is because of some form of anti-trust action in business producing exclusivity and limitation of OS choices. This is par for the course for microsoft and its business model; when the consumer doesn't like it, buy up, control, and limit their choices. In the end, they know the consumer pays for MS crap rather than not have technology.

  7. numbers don't lie/exaggerate, but... by CannonballHead · · Score: 4, Insightful

    the interpretation can.

    For example: $1k invested in 2000, AAPL vs. MSFT. What about 1985? 1990? 1995? Hindsight is 20/20, as the saying goes. Apple has had success with some of it's more recent Jobs products. But nobody KNEW that would happen before-hand. Apple has gone up and down; has Microsoft done the same? Was MSFT less of a gamble with a smaller potential benefit, whereas Apple was a gamble with large potential benefit? (I don't know, I'm only asking questions that could color the interpretation of these "infallible numbers" ....)

    Or, how about this one: revenue vs. profits. MSFT is still beating Apple in profit. So ... which is more important? Total stock price? Profit? Total revenue? ...

    Or how about diversity of revenue? If suddenly iPhones and iPads went out of style, where would Apple be? If Windows phones went out of style, where would Windows be?

    Interpretation of numbers is a big deal in comparing two companies... and there's a lot more to a company vs. company debate than revenue, profit, stock price/market cap, and phone sales... especially when products come and go as trends, and when one company has already shown that it falls apart without a certain CEO.

    1. Re:numbers don't lie/exaggerate, but... by Rockoon · · Score: 2

      Microsoft makes most of their money from two closely linked software products - Office and Windows. Both of which are losing market share.

      You are making one of the mistakes the poster was talking about.

      iOS is losing market share to Android, yet Apple is still printing money hand-over-fist at an ever-increasing rate in those very markets its "losing share" in.

      The same is true for Microsoft. Even though Office and Windows are "losing share", they are still setting profit and revenue records nearly every year.

      Apples problem is that the revenue streams are too tightly integrated with each other. If Apple doesnt sell any iPhones or iPads, then the App Store also loses all of its value. The same just isnt true for Microsoft which is at its core a software company that enters and leaves markets as they grow and shrink. If the desktop market collapses, Microsoft will be putting out Office for Tablets (in a sense, they already are with Office 365.)

      When Microsoft dies, it will be after a very long slow death with slowly shrinking profits. When Apple dies again, it will begin with a very rapid collapse of the tower.

      --
      "His name was James Damore."
  8. AAPL overpriced? Are you on crack? by jamrock · · Score: 3, Insightful

    Apple's P/E is only about 18.5, and the case has been repeatedly made that the stock is ridiculously underpriced. Case in point. I can't believe your neck fart was modded insightful.

  9. Re:The Old New Thing by SilverJets · · Score: 4, Insightful

    He's as out of touch and greedy as he ever was only this time instead of storming out in a blaze of publicity he's signed up to getting an authorised biography done.

    Lol, wut? Out of touch? Really? Did you happen to notice the iPod? Apple cornered the marked on portable, digital music players and everyone else had to play catch up. Which none of them ever managed to do.

    Have you seen the iPad? Again, Apple has cornered the market and yet again the competitors are racing to catch up with Apple having already launched its 2nd gen iPad.

    From the other side he'll be madly laughing to himself as the seeds of his own arrogance caused Apple to miss the boat on getting an affordable OS X out to the masses and someone carries the blame again.

    Affordable OS X? Go to any computer store that sells Apple products. The disk for OS X costs about $30. 30 DOLLARS. How farking much does cheapest hobbled version of Windows 7 cost?

  10. Kinect. by w0mprat · · Score: 3, Insightful

    Everyone forgets about Kinect. Which outsold iPhones, iPads, iPod touchs, combined. It went on to break the Guiness World Record for the fastest selling consumer gadget of all time. Mod me down as a troll or whatever but: Thats Pretty Fucking Impressive. Frankly Apple's wonderously profitable, despite having nothing like the market share of other players, that is all.

    We're all still so besotted with shiny iThings and Microsoft bashing groupthink that we've kind of ignored this revolutionary human computer interface. Things being done with Kinect by hackers are seriously cool and ultimately this is the technology that is going to be the technology that the forthcoming consumer robot revolution will see the world with.

    Microsoft is hardly old news, it just isn't a news media and Wall Street darling like Apple. Microsofts been sinking billions into user interface R&D over the last little while, too much criticism, yet they now have something pretty revolutionary and record breaking to show for it.

    As soon as they stick Kinect in a smartphone they'll have a hit on their hands.

    ""It's a matter of opinion which company makes the better operating system or is likely to grow its smartphone market share. But numbers don't lie â" or exaggerate."

    Yeah numbers don't lie - Apple still has a niche desktop install base, and a smaller market share of mobiles than Android, and growth has plateaued in each area. Tablets are where Apple will inevitably dethroned, but I'd bet they hold out longer since their lead in this area is bigger. Historically Apple having any kind of lead has been a temporary thing.

    --
    After logging in slashdot still does not take you back to the page you were on. It's been that way for 20 years.
    1. Re:Kinect. by geek · · Score: 2

      This is perhaps anecdotal but truthfully, the mp3 market is changing rapidly thanks to smart phones. I gave my iPod away a long time ago and haven't looked back as my Android phone(s) have been capable of doing a lot more. With the rise of smartphones the decline of mp3 devices will increase until it goes the way of the sony walkman. That I think leads into the "temporary" part of the Apple dominance thing.

      The iPod was and remains a great device but it's usefulness is going to be short lived if current market trends continue.

    2. Re:Kinect. by rhook · · Score: 2

      The XBox has been making a profit since before the start of 2008. They even had $165 million in profit for Q3 of last year.

      http://www.pcworld.com/article/148982/xbox_delivers_a_profit.html

      http://www.pcworld.com/article/148982/xbox_delivers_a_profit.html

      And lets not forget that while Microsofts profits are falling that the XBox and Kinect profits are growing.

      http://www.guardian.co.uk/technology/2011/jan/28/microsoft-profits-xbox-kinect

      You were saying?

    3. Re:Kinect. by SplashMyBandit · · Score: 2

      Kinect has competitors. One done with (Open Source) software and an IPhone also produces impressive results:
      http://www.i-programmer.info/news/105-artificial-intelligence/2310-predator-better-than-kinect.html

      Neither the Kinect nor XBox will cause investors to love Microsoft. Just as well there are still loyal fanbois who have blinkers on to what is going on outside of Redmond. The rest of us see Microsoft in a similar way to IBM; big, bloated, and not going away anytime soon, but not exciting either - it's just not in their corporate DNA to make a radical change (the 'addiction' to the Windows/Office cash-cow ensures this).

    4. Re:Kinect. by ceoyoyo · · Score: 2

      Um, do you have any references to back any of that up?

      The Kinect is the best selling consumer gadget of all time, but it's closely followed by the original iPad, the previous record holder. And after it's initial burst the Kinect slowed off. It looks like the Microsoft shipped 10 million Kinects to retailers in it's first four months, selling at $150 apiece. Note that those are shipped to retailers, not necessary sold.

      In the last three months of 2010 Apple sold 7.33 million iPads, 16.24 million iPhones and 19.45 million iPods. So no, the Kinect didn't outsell iPads, iPhones and iPods combined, unless you were looking at a very short period of time right around launch. Besides which, the Kinect is a $150 device while the iPad averages about $600 and iPhones are around $800.

      The Kinect is a neat gadget, and a decent innovation, but it's not particularly revolutionary and a $150 peripheral isn't going to turn Microsoft around.

  11. why does anyone take Wall Str numbers seriously ? by cinnamon+colbert · · Score: 4, Insightful

    I mean, these are the guys selling toxic mortgage backed securities as "AAA" while simultaneously shorting the securities as junk
    Wall Str is where one number can come out, and suddenly a company is worth 10, or even 20% less then yesterday
    I could go on, but this blind faith in the "market" - which is really a relatively small # of conservative white guys who all live suburbs that are the same across the country - this faith is silly.

  12. Re:The Old New Thing by BlackSnake112 · · Score: 3, Interesting

    But according to Apple, you also have to own/buy apple hardware to install that $30 OS on.

    Considering Apple went out of their way to stop people from installing OSX on netbooks, the AC has a point. If Apple had to support OSX on every type of Intel and AMD platform I am not so sure their "smooth OS experience" would be there across the board.

  13. Re:Bought my first Mac by the-matt-mobile · · Score: 2

    0.1% of the Slashdot crowd, maybe. But you delude yourself if you believe that plenty of folks aren't happy with Windows. Now, yes - the specs I wanted for my laptop aren't super-typical for someone in the market for a Dell, but so what? My point still stands - I highly doubt that Apple is killing Microsoft in any way right now in the markets where they actually compete. People aren't choosing Apple over some Microsoft alternative - that was the battle from 2 decades ago. The more interesting comparison is how Apple is doing against Dell, HP, Samsung, and Sony as Apple is a maker of devices... the software part of their business is ancillary.

  14. Comment removed by account_deleted · · Score: 2

    Comment removed based on user account deletion