Sunday, May 1, 2011

Apple?s beats Microsoft profits for first time in 20 years

Section: Apple Business

Steve Ballmer

Two great news reports concerning Apple Computer’s profitability and popularity.

The Guardian has reported that for the first time in 20 years, Apple’s quarterly profits and revenues ($6 billion and $24.7 billion respectively) were greater than Microsoft’s ($5.2 billion and $16.4 billion, respectively). The reason for this is the decline in popularity of laptop and desktop computers, since Microsoft gets half of its profits from Windows licenses, as well as Bing recording a loss of $726 million. However, Windows 8 will be coming in September. That should have support for tablets, so time will tell if Apple can maintain its lead.

Research firm Canalys considers Apple Computer the fourth-largest largest PC maker in the first quarter, if you count tablets as PCs. Canalys does this, unlike analyst firms Gartner and IDC, because “that current [tablet] usage resembles that of a PC, rather than a media player or e-book reader.” Apple sold 8.45 million PCs for a 9.5% market share, an increase of 187.9% in the first quarter. Hewlett-Packard is the largest PC maker with 14.7 million shipped PCs (declining by 5.8% from last year) for a 16.6% market share, Acer is second with 11.4 million PCs shipped (declining by 6.5% from last year) and a 12.8% market share, and Dell is third with 10 million PCs sold (increasing by 2.8% from last year).

IDC and Gartner agreed that the iPad was partly responsible for the slowdown in PC shipments. “With the launch of the iPad 2 in February, more consumers either switched to buying an alternative device, or simply held back from buying PCs. We’re investigating whether this trend is likely to have a long-term effect on the PC market,” said Mikako Kitagawa, principal analyst at Gartner, in a statement earlier this month.

Read [Guardian] and [Yahoo! News]

Full Story » | Written by Erica Marceau for Appletell. | Comment on this Article »


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