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Wednesday, November 5, 2008

Apple And Microsoft Earnings Are Near Equal

A friend sent me this link comparing revenue, profit, and cash positions for Microsoft and Apple. I almost fell off my chair when reading this data from Microsoft’s and Apple’s most recent quarterly filing:

Category Microsoft Apple AAPL / MSFT
Revenue $15.06B $11.68B 78%
Net Profit $4.37B $2.44B 56%
Cash & Equivalents Balance $20.7B $24.5B 118%

Seriously, when did this happen??? I mean, I knew Apple was doing well, but I’d taken the time to compare their financials versus Microsoft. Wow. Nice work Team Apple!

Next, via Matt Asay, Gizmodo is reporting that the new MacBooks will prevent Jailbroken iPhone and iPod devices. It seems that the culprit is a new build of iTunes for the new MacBooks. Things work fine on a Windows machine. A gizmodo commenter writes:

“While I don’t like it, I can see why Apple tries to prevent Jailbreaking and Unlocking. Unlocking hurts them in the pocket and they are in the business of making money, after all. Jailbreaking opens up the possibility of piracy of App Store apps, this is just their way of trying to prevent piracy. It’s no different from firmware updates for game consoles that break previous hacking techniques.”

It always surprises me how Apple and Microsoft can make the exact same move and Microsoft will attract criticism, while Apple will attract praise. Part of this is because Apple’s products really are sexy and fun to use. Sure. But the response is also driven by folks pulling for “the little guy”.  However, in the Apple vs. Microsoft fight, two things have changed. First, Apple isn’t in the same fight that Microsoft thinks it is in. Apple is more like Sony than it is like Microsoft. Yet, Microsoft competes with Apple like Apple is, well, your dad’s Apple. Second, while many of us were looking elsewhere, Apple isn’t “the little guy” anymore.

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About the author:
Savio Rodrigues is a product manager with IBM's WebSphere Software division. He envisions a day when open source and traditional software live in harmony. This site contains Savio's personal views. IBM does not necessarily agree with the views expressed here.
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