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For the first time ever, Apple beats Microsoft in quarterly profit

by Michael Grothaus Apr 28th 2011 at 11:00PM

Today Microsoft announced its net profit for the first calendar quarter of 2011. That net profit was $5.23 billion, or $760 million dollars less than Apple's $5.99 billion net profit over the same period. For those keeping track, first Apple surpassed Microsoft in market capitalization, next they surpassed Microsoft in quarterly revenue, and now Apple has surpassed Microsoft in quarterly profits. Surpassing Microsoft's net profit is quite an accomplishment given the typical high-margin sales of Microsoft's software and the lower-margin sales of Apple's hardware.

Matter of fact, by every standard financial measure, Apple has now surpassed Microsoft to be the most profitable and valuable tech company on the planet. No wonder some people think Apple is headed to be the first trillion dollar company.

[via MacRumors]



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Today Microsoft announced its net profit for the first calendar quarter of 2011. That net profit was $5.23 billion, or $760 million...
 

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dwightk

um, Apple has had higher profit than Microsoft before this quarter. This is just the first time in 20 years.

April 30 2011 at 4:15 PM Report abuse rate up rate down Reply
watsmcm

I want a rebate.

April 29 2011 at 12:39 PM Report abuse rate up rate down Reply
MLE

Yy

April 29 2011 at 3:18 AM Report abuse rate up rate down Reply
Steve

"Surpassing Microsoft's net profit is quite an accomplishment given the typical high-margin sales of Microsoft's software and the lower-margin sales of Apple's hardware."

I'm seriously wondering if you accidentally reversed this statement. Apple's computers are very high-margin. They make a lot of profit. Microsoft software is fairly low margin, as they practically give it away on newly-installed PCs and there is a lot of R&D.

Apple's high profit margins are part of the reason they make so much more profit than Microsoft, despite the fact that MS has a MUCH larger market share.

April 29 2011 at 1:41 AM Report abuse rate up rate down Reply
1 reply to Steve's comment
redcard

I think the results are telling us that Apple products are not as high margin as some people would like to think.

April 29 2011 at 4:27 AM Report abuse rate up rate down Reply
Pusta

"Surpassing Microsoft's net profit is quite an accomplishment given the typical high-margin sales of Microsoft's software and the lower-margin sales of Apple's hardware."

Seriously? Most Windows licenses in the home Market are sold with a new PC, people do not run out and buy a retail box copy. Also, in the enterprise space Microsoft negotiates ELA deals that are heavily discounted. And if you think there's low margin on a Macbook....

April 29 2011 at 12:43 AM Report abuse rate up rate down Reply
4 replies to Pusta's comment
MRCUR

Times are a changin'.

April 28 2011 at 11:10 PM Report abuse rate up rate down Reply
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