iPhone division is bigger than Microsoft

Founder and CEO of Silicon Alley Insider hengli·buluojite wrote a few days ago, Apple's iPhone business alone, has current revenues exceeded the Microsoft. Needs to be emphasized is that iPhone more than not Windows or Office, the entire Microsoft.

IPhone does not exist five years ago, but now that revenues from that business has more than 15 years ago, have no doubt, difficult to imagine monopoly, while in the company of court must be broken up by threat.

For the fiscal first quarter ended December 31 last year, Apple's iPhone business revenues of us $ 24.4 billion. Microsoft's total revenues of us $ 20.9 billion in the same period. Assuming Apple iPhone business operating margins in line with overall business, 38%, iPhone in first quarter operating profit will reach about US $ 9.3 billion. Meanwhile, Microsoft when a quarter of total operating profit of just US $ 8.2 billion.

Not so long ago, when Apple's market capitalisation close to Microsoft, Microsoft CEO Steve Ballmer have excuse that, regardless of the market or not, Microsoft's larger business and profits high. But today, the situation has undergone a change. Today, more than twice of Apple's revenue is Microsoft, and 1 time times more profit than Microsoft. Apple revenues of US $ 46 billion in the previous quarter, up from Microsoft's $ 21 billion; Apple net profit of 17 billion dollars, far more than the $ 8 billion in Microsoft.

Needless to say, Apple's market capitalization now far lagged behind Microsoft. But what's interesting is, Apple's market value has not reached twice times for Microsoft, because markets worry about Apple "closed system" vulnerable to more open operating system, Android and other attacks, just as the last century 90 's Apple's Divx Converter for Mac business encounters problems.

Ballmer and take ten years before Microsoft shuaiyin, because Apple has revolutionized the two product lines, and a business than Microsoft's entire business is strong, so he will never be able to rest for a while. About 18 months ago, Microsoft's market value more than Apple. But now, these have become the old memories. Microsoft just missed out on the market (iPhone and iPad), and Apple has created them. But now, the market is worth more than Microsoft's monopoly of the market, and make more money.

Another error committed by Microsoft over the years to have been addicted to the wrong competitor. In the past ten years, Microsoft sees Google as the number one enemy, has invested more than US $ 10 billion to compete with the Google search engine. Although Microsoft has made some progress, but today, the year of losses in the business has reached $ 2 billion. Is ignored by Microsoft Apple, now is more a threat to Microsoft's core business.