Microsoft Dissapoints Wall Street While Apple Shines… How Times Have Changed

Steve Jobs reality distortion field must really be having an effect on the universe. Within 24 hours of each other, Microsoft and Apple came out with their quarterly statements, and I think the results will speak for themselves.

Microsoft for its part beat the street. That’s where the good news ends. The bad news is that their third quarter profit fell 11% from a year ago. Not only that, but sales in the division responsible for Windows fell 24%. Perhaps there was a “Vista Effect” at work here? In any case, as I hinted earlier their net profit fell to $4.39 Billion USD down from $4.93 Billion USD. Investors who didn’t like what they read sent shares down $1.43, or 4.5 per cent, to $30.37 in after-hours trading.

Meanwhile down in Cupetino, Apple reported 43% revenue growth and 51% growth in Mac sales. They also noticed that Apple Store sales were up 74% and that Mac sales up 3.5 times the rate of PC industry as a whole. The only bad news is that iPod sales were only up 1% (likely because everybody and their dog has one), but it didn’t seem to matter as they managed to record a net quarterly profit of $1.05 billion USD, up from $770 million USD a year ago.

So…. What does this mean? I think it means that people who were users of Windows are abandoning a sinking ship migrating to Mac as Vista sucks has clearly not resonated with consumers. I wonder how long before businesses do the same?

2 Responses to “Microsoft Dissapoints Wall Street While Apple Shines… How Times Have Changed”

  1. Blad_Rnr Says:

    If corporate IT shops would try to understand that Mac OS X is nothing like the Classic Mac OS (7.x, 8.x and 9.x), it’s UNIX, and you don’t pay licenses for server seats on an Xserve, that Office 2008 is 90% compatible with Office 2007, and it plays nicely even in a Windows Server environment, then you will see a mass migration.

    Salesforce.com already decided. They’re going Mac.

  2. With the level of success that Apple has achieved over the last decade, it would seem that the phrase reality distortion field has lost its impact..I mean the reality is….Apple is delivering exactly what Steve is presenting. There is no distortion to the real measurable successes that Apple is experiencing.
    I point this out because, as an Apple fan the term “Reality Distortion Field” has a negative connotation. Continued use of the term only perpectuates that negative.
    Otherwise, the times have definately changed… A decade ago, it felt necessary to defend Apple and the Mac. Especially in heated discussions with the anti-Apple crowd. Now that average consumers are seeing the realities of the difference in experiences on both platforms, they are rapidly and increasingly seeing what we Mac users have known all the time. It has gotten to the point that defending Apple is no longer necessary.
    I’m glad the time has come. Worse thing can happen is that MS may actually start producing better quality now that the competition has become a true threat.
    Reality Distorted? I think not!!!!

Leave a Reply

%d bloggers like this: