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0dev

macrumors 68040
Original poster
Dec 22, 2009
3,947
24
127.0.0.1
Tech writer MG Siegler just noted a remarkable fact:

Apple's iPhone business alone is now bigger than Microsoft.

Not Windows. Not Office. Microsoft.

Think about that.

The iPhone did not exist five years ago. And now it's bigger than a company that, 15 years ago, was dragged into court and threatened with forcible break-up because it had amassed an unassailable and unthinkably profitable monopoly.

The iPhone also appears to be considerably more profitable than Microsoft.

In the December quarter, Apple's iPhone business generated $24.4 billion of revenue. Microsoft's whole company, meanwhile, from Windows to Office to servers to XBox, generated $20.9 billion.

If we assume that Apple generates the same operating profit margin on its iPhone business that it generates on its overall business--38%--the iPhone business generated about $9.3 billion of profit in the December quarter.

All of Microsoft, meanwhile, generated only $8.2 billion.

http://www.businessinsider.com/iphone-bigger-than-microsoft-2012-2
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
And another one is strengthening.

Better that than what was before, that's for sure. A real innovator who at least makes an effort (and who has redefined a number of markets for the better) is leading the industry now, and who has gotten to that position fairly.

Even if Apple eventually stagnates over time, I'd rather see a decade of Apple at their best than a decade of MS at their "best." The consumer will always do better, all else being equal, with a vertical business model.
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
And another one is strengthening.

Hopefully we see a nice parity across the tech board, but that's never the case.

And apple is by far worse than Microsoft ever was. Mind you apple possible poor enterprise support and real road maps will prevent the from the enterprise market. In many ways Apple is not going head to head with Microsoft bread and butter.
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
And apple is by far worse than Microsoft ever was.

How?

(Remembering that Apple is not a convicted monopoly-abuser.)

And consumers seem to actually be *choosing* Apple gear, rather than choosing among the same things in an MS-dominated universal-licensing racket, that is, among "choiceless choices."
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
How?

(Remembering that Apple is not a convicted monopoly-abuser.)

And consumers seem to actually be *choosing* Apple gear, rather than choosing among the same things in an MS-dominated universal-licensing racket, that is, among "choiceless choices."

examples of how?
How about many of Apple devices do not play nice with anything but Apple devices.

iTunes movies only play on Apple devices or on iTunes. Apple fairplay DRM same thing and the real reason Apple removed it was they could see the writing on the wall and that was they were risking losing in court in the future and it would of been a much larger blow.

You have the app store lock down and very strong rules. If you have in app billing at all you are REQUIRED to use apples system for a 30% cut which is nothing more than a credit card processor. No links to external sites or anything in the app.
No side loading of Apps.

Trying to sue for the name App store which thankfully the courts saw right threw it.
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
examples of how?
How about many of Apple devices do not play nice with anything but Apple devices.

iTunes movies only play on Apple devices or on iTunes. Apple fairplay DRM same thing and the real reason Apple removed it was they could see the writing on the wall and that was they were risking losing in court in the future and it would of been a much larger blow.

You have the app store lock down and very strong rules. If you have in app billing at all you are REQUIRED to use apples system for a 30% cut which is nothing more than a credit card processor. No links to external sites or anything in the app.
No side loading of Apps.

ALL of what you mentioned, is to Apple's credit, and is actually a positive for consumers.

Ergo:

http://mashable.com/2012/01/24/apple-quarter-by-the-numbers/

You have to *choose* to buy an Apple product. An unlicensed OS, locked to a limited number of devices, as part of a heavily-vetted ecosystem. And what do we want? More of it. Holy ****, our wallet's are opening already! See?
 

aristobrat

macrumors G5
Oct 14, 2005
12,292
1,403
Gesh, it doesn't seem like so long ago Paul Thurrot was commenting on how while Apple made more revenue than Microsoft, Microsoft made more profit. Not so much anymore. :eek:
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
ALL of what you mentioned, is to Apple's credit, and is actually a positive for consumers.

Ergo:

http://mashable.com/2012/01/24/apple-quarter-by-the-numbers/

You have to *choose* to buy an Apple product. An unlicensed OS, locked to a limited number of devices, as part of a heavily-vetted ecosystem. And what do we want? More of it. Holy ****, our wallet's are opening already! See?

I see you choose to pass over the fact. I already see you are doing your typical BS of posting profit from Apple. Not a valid argument here.

Lets see Apple system screws over anyone not Apple. The required to use Apple 30% cut for in App purchases was crap. It magically started being enforced right after Apple started prepping for their own streaming services and offering iBooks. WOO huge suprise there.

Also its lock in prevents other companies from entering the market or offering competing services. It puts a near to impossiblely high front loading cost to break in. This hurts consumers.
You have the insane Apple lock in that once you invest anything into the Apple eco system it pretty hard to break out as Apple only plays nice with Apple products.

But you LTD do not get the point. Instead you try your spin tricks to justify it. Heck your own so called arguments could be turned against you when you point to MS. MS did some dirty things in the past. Apple is doing plenty as well. Remember you had to CHOOSE to use MS windows, and you had to CHOOSE to use MS office. Apple is hurting competition not helping.

if you want other examples you have Apple string of law suits with it crapents.
 

eawmp1

macrumors 601
Feb 19, 2008
4,158
91
FL
"There's no chance that the iPhone is going to get any significant market share. No chance," said Ballmer. "It's a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I'd prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get."
-Steve Ballmer 4/2007

There is a lesson for Apple management here.
 

ixodes

macrumors 601
Jan 11, 2012
4,429
3
Pacific Coast, USA
There's nothing surprising here. It's just business. No one stays on top forever, and nothing is more uncertain than fickle consumers. Apple fans should bask in their moment now. You never know what tomorrow will bring.
 

Sirolway

macrumors 6502
Jun 13, 2009
421
23
London
Even now, in business, you pretty much have to use Windows & MS Office. I'm not saying they're bad, but there's not really a lot of choice there.

iPhones may be swallowing all the profit in mobile phones, but there's plenty of choice to buy from - Android has the bulk of the market & even RIM, MS & others have very viable alternatives to the iPhone.

iPad similarly ish (ok, on rockier ground here). Apple has the lion's share of the market, but there are very viable alternatives - most obviously the Kindle Fire, but also a fair few models from Android etc.

I don't think anyone has yet managed to pull off what MS did with Windows & Office. I'm pretty glad about that, although I do admire Bill Gates & MS for achieving that in the first place.

As a final rant, I never could understand why educational systems (e.g. here in the UK) insisted on shelling out for Windows & Office. What a waste of money - I wish they'd done the German / Brazillian sort of thing & gone open source with Linux, OpenOffice etc. In the UK the IT (ICT, they call it) syllabus has recently been heavily slated for teaching a few powerpoint skills & not much else. Crazy.

The Raspberry Pi (a credit-card sized PC for about $25) might change all that with a little luck but probably only / first in private schools.

Anyway - back to the original point. I think MS still have a lock on business with Windows & Office in a way that no one else has in technology.
 

0dev

macrumors 68040
Original poster
Dec 22, 2009
3,947
24
127.0.0.1
As a final rant, I never could understand why educational systems (e.g. here in the UK) insisted on shelling out for Windows & Office. What a waste of money - I wish they'd done the German / Brazillian sort of thing & gone open source with Linux, OpenOffice etc. In the UK the IT (ICT, they call it) syllabus has recently been heavily slated for teaching a few powerpoint skills & not much else. Crazy.

Couldn't agree more, IT education in the UK is a massive joke. I finished it a few years ago and the only thing it "taught" me was how to take screenshots of MS Office then write about what all the buttons do. Utter ********* waste of time. I spent most lessons playing games and posting on forums and I still got BBB. No wonder I get people asking me how to do things as simple as print documents when that's how the education system works, and it's equally as bad at teaching every other subject as well, I can tell you.
 

Dr McKay

macrumors 68040
Aug 11, 2010
3,430
57
Kirkland
I see you choose to pass over the fact. I already see you are doing your typical BS of posting profit from Apple. Not a valid argument here.

When will you learn that you cannot argue with LTD? His logic is either backwards or non-existent, he flips and changes his points and arguments at the drop of a hat and denies his previous ones, if you call him out on these he will just ignore you. And if you point out a colossal flaw in his argument or points, he'll just post an article about how Apple are making profits like it makes everything Sunshine Lollypops.

He will often just all-out lie, and when you ask his sources, will post something unrelated and insist that you "read between the lines". Just give up, you cannot win ;)
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada

Source?? It's obvious. LOL look around. The sources are everywhere. For years now.

8th time:

https://www.macrumors.com/2011/09/2...isfaction-survey-for-eighth-consecutive-time/

Been this way since it debuted:

http://www.bgr.com/2011/12/22/ipad-satisfaction-rate-at-84-according-to-new-survey/

6th time:

https://forums.macrumors.com/threads/1225989/

Is it any coincidence the best-selling smartphones all sport an Apple logo?

That's the strength of vertical integration done right. It creates an ecosystem that has no peer. This stuff doesn't happen by accident.
 
Last edited:

AppleScruff1

macrumors G4
Feb 10, 2011
10,026
2,949
Source?? It's obvious. LOL look around. The sources are everywhere. For years now.

8th time:

https://www.macrumors.com/2011/09/2...isfaction-survey-for-eighth-consecutive-time/

Been this way since it debuted:

http://www.bgr.com/2011/12/22/ipad-satisfaction-rate-at-84-according-to-new-survey/

6th time:

https://forums.macrumors.com/threads/1225989/

Is it any coincidence the best-selling smartphones all sport an Apple logo?

That's the strength of vertical integration done right. It creates an ecosystem that has no peer. This stuff doesn't happen by accident.

But that doesn't prove your statement. You stated it as a fact. It does not prove that vertical integration is always best for the consumer. Believe it or not, Apple isn't the only company on earth. I was giving a warning for trolling because I made a statement that I couldn't prove.
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
-Steve Ballmer 4/2007

There is a lesson for Apple management here.

Just going to point out Apple did go to subsidies prices. The iPhone would never of gotten as big as it did if it was forced to stay at full price.
 

*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
Just going to point out Apple did go to subsidies prices. The iPhone would never of gotten as big as it did if it was forced to stay at full price.

It wasn't just Ballmer. Nearly everyone in the industry - from Sanjay Jha to RIM's (former) half-CEOs thought June 2007 was all a big joke (for other reasons), and they wasted no time in their chest-thumping, declaring just that to the world. But those who understood Apple saw it for what it was. And the same thing happened in January 2010 with the iPad.

And here we are.

----------

But that doesn't prove your statement. You stated it as a fact. It does not prove that vertical integration is always best for the consumer. Believe it or not, Apple isn't the only company on earth. I was giving a warning for trolling because I made a statement that I couldn't prove.

No one says you have to accept my proof. Nor am I required to secure your unequivocal belief.
 
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