Apple and Microsoft have not had a lot of good press lately, but in spite of the issues both companies have faced, their quarterly reports released this week showed two companies that are still extremely profitable.
[B]Microsoft Comes Through
In spite of [URL="http://www.daniweb.com/news/story295211.html"]giving up on the Kin[/URL] and a mobile strategy that seemed in shambles, Microsoft rode the wave of its old chestnuts, Windows and Office, to a very profitable quarter. They reported a "record fourth-quarter revenue of $16.04 billion for the quarter ended June 30, 2010, a 22% increase from the same period of the prior year." Not too shabby all things considered, but there is an underlying issue there.
You have to wonder how long they can continue to depend on Windows and Office. Sure, XBox did OK and Bing helped, but it was really their old standards that won the day. As more free and low-cost services including Google, crowd out these expensive options, Windows and Office can't sustain the company forever. While [URL="http://www.microsoft.com/msft/earnings/fy10/earn_rel_q4_10.mspx"]the press release[/URL] made noise about their cloud strategy and the hype machine is in full gear for the upcoming release of Windows 7 Mobile in the Fall, Microsoft still leans heavily on its standard bearers.
[B]Apple Does Even Better[/B]
As good as Microsoft's numbers were, Apple's were even better. When you consider the [URL="http://www.daniweb.com/news/story294002.html"]issues it had with the iPhone 4 antenna[/URL], you would think perhaps they were faltering a bit, but you would be wrong. [URL="http://www.apple.com/pr/library/2010/07/20results.html"]According to numbers released by Apple[/URL] this ...