Apple Soars, Microsoft Shinks

On Tuesday, Apple had their quarterly conference call with investors. Today, Microsoft announced some financial news of their own. Let's compare and contrast.

Apple has a record breaking quarter. Profits rose 15%, gross margin increased from 34.8% to 36.3%, and had its best ever June quarter. And 1.5 Billion (with a B) apps were downloaded from the App store in its 1st year. While not all the news was that good – iPod sales declined, but this was expected because iPhones are also iPods.

Microsoft on the other hand told investors that its spring quarter sales shrank 17%. Revenue for its Client devision (which produces Windows) fell 28.7% and the Entertainment group (Xbox and Zune) fell 25%.

Apple is building a $1 Billion data center in North Carolina. Microsoft cut 5,000 jobs.
NPD Market Research announced its finding that Mac sales made up 88% of all computers that sold for $1000 or more in spite of less than 10% overall market share.

Microsoft Windows runs on virtually all cheap computers, but on very few high end machines.

What happens if Google's Chrome OS is good for low end machines?
 
Clearly Microsoft is winning the race to the bottom.

Microsoft, a once great company with great products, has lost its way. Balmer must go.

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