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Microsoft's quarterly profit drops below Apple's for the first time in 20 years

mashable.com

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Re: Microsoft's quarterly profit drops below Apple's for the first time in 20 years

#71
post #4

For me, it's more interesting that Apple did this without a lot of the shady business & licensing practices that Microsoft engages in. Edit: Before downvoting me, take a look at my comment history. I'm not your typical Apple fan/Microsoft basher.

"a lot of the shady business & licensing practices that Microsoft engages in"

Um... you are wrong. These companies are all suing each other, and Apple is known for creating patents for every little thing they do in iOS.

Re: Microsoft's quarterly profit drops below Apple's for the first time in 20 years

#72

Microsoft spends a significant amount on basic research, like Bell labs used to and Microsoft research publishes a lot of publications. 15% of the research budget goes to universities for research, that could keep the profits lower than Apple.

The basic research budget (MSR) is a pretty small part (2%?) of the overall MSFT R&D budget. Though probably still one of the biggest industrial research budgets.

Re: Microsoft's quarterly profit drops below Apple's for the first time in 20 years

#73
What we need to focus here is this...despite the decrease in PC sales, Microsoft managed to grow. They did not just grow a little, but they grew tremendously. 30%? that's a huge number for a company like Microsoft. Nonetheless, Apple has reached another huge milestone in their history.

Re: Microsoft's quarterly profit drops below Apple's for the first time in 20 years

#74
post #73

What we need to focus here is this...despite the decrease in PC sales, Microsoft managed to grow. They did not just grow a little, but they grew tremendously. 30%? that's a huge number for a company like Microsoft. Nonetheless, Apple has reached another huge milestone in their history.

Right, I think the point is this says more good things about Apple and doesn't really say that MS faces impending doom. Both companies are quite impressive, just more so for Apple. To grow a megacap company in double digits is quite a feat.

Re: Microsoft's quarterly profit drops below Apple's for the first time in 20 years

#75
post #67
post #42

Earlier quoted context omitted.

In fact, Microsoft spends around $2-2.5b on R&D per quarter [1] while Apple spends $500-600m [2]. That certainly more than makes up for the difference. [1] http://finance.yahoo.com/q/is?s=MSFT [2] http://www.google.com/finance?q=NASDAQ:AAPL&fstype=ii

I was on a team once at Apple with ~15 people on it. At one point, we found out the equivalent group at Microsoft had ~500 people. Most people I've talked to who worked elsewhere are shocked at how small the teams at Apple are.

What group is that? From what I hear most groups at MS aren't huge either -- unless you aggregate them (for example Visual Studio, counting all of the languages, shells, debuggers, etc...).

Unless you're going to say there are only 15 people on iOS. In which case I will be seriously impressed!

Re: Microsoft's quarterly profit drops below Apple's for the first time in 20 years

#76
post #67

Earlier quoted context omitted.

I was on a team once at Apple with ~15 people on it. At one point, we found out the equivalent group at Microsoft had ~500 people. Most people I've talked to who worked elsewhere are shocked at how small the teams at Apple are.

What group is that? From what I hear most groups at MS aren't huge either -- unless you aggregate them (for example Visual Studio, counting all of the languages, shells, debuggers, etc...). Unless you're going to say there are only 15 people on iOS. In which case I will be seriously impressed!

When I was at Apple, I was on a team of 6 within the server group. When I told a friend in CoreOS that we had 6 people, he wanted to know what justified our team being so large!

Oh, and if you want an Apples to Apples comparison...I was there when the Server group merged with the Dev Tools group...and the merged group is maybe 300 engineers total (all of server was about 70 engineers...all told OS X and iOS combined only comes to something like 3000 engineers).

A fun little link: http://www.wolframalpha.com/input/?i=revenue+per+employee+at...

Re: Microsoft's quarterly profit drops below Apple's for the first time in 20 years

#77
post #67

Earlier quoted context omitted.

I was on a team once at Apple with ~15 people on it. At one point, we found out the equivalent group at Microsoft had ~500 people. Most people I've talked to who worked elsewhere are shocked at how small the teams at Apple are.

Did you find the small team size a pleasant experience? Is it a case of many small teams adding up to a lot of people, or genuinely few small teams?

My experience was that it was genuinely small teams...and it was fun! It's one of the ways that Apple maintains a startup-like atmosphere despite being such a large company. Oh, and Apple remains a very flat company. I was 5 degrees removed from Steve Jobs, and I don't know anyone that was more than 8...including retail staff!

Re: Microsoft's quarterly profit drops below Apple's for the first time in 20 years

#78

Earlier quoted context omitted.

What group is that? From what I hear most groups at MS aren't huge either -- unless you aggregate them (for example Visual Studio, counting all of the languages, shells, debuggers, etc...). Unless you're going to say there are only 15 people on iOS. In which case I will be seriously impressed!

When I was at Apple, I was on a team of 6 within the server group. When I told a friend in CoreOS that we had 6 people, he wanted to know what justified our team being so large! Oh, and if you want an Apples to Apples comparison...I was there when the Server group merged with the Dev Tools group...and the merged group is maybe 300 engineers total (all of server was about 70 engineers...all told OS X and iOS combined…

all told OS X and iOS combined only comes to something like 3000 engineers

That sounds about right. For Win7 about 2500 engineers (1000 devs, 1000 testers, 500 PMs). I suspect WP7 is probably 500 engineers. So Windows + WP7 is probably right around the same number.

Interesting to think that in terms of products where Apple and MS compete directly, they probably have very similar headcounts. There's a mythology that MS is this huge beast that will crush you (at least in the past). But in reality MS ships 100+ different products. The company is spread a lot thinner than lay people might imagine.

http://www.pc-wholesale.com/networking-news-a-small-army-of-...

Re: Microsoft's quarterly profit drops below Apple's for the first time in 20 years

#79
post #42

Microsoft spends a significant amount on basic research, like Bell labs used to and Microsoft research publishes a lot of publications. 15% of the research budget goes to universities for research, that could keep the profits lower than Apple.

In fact, Microsoft spends around $2-2.5b on R&D per quarter [1] while Apple spends $500-600m [2]. That certainly more than makes up for the difference. [1] http://finance.yahoo.com/q/is?s=MSFT [2] http://www.google.com/finance?q=NASDAQ:AAPL&fstype=ii

So I don't understand. Are you saying that research money is essentially a donation so that's why it doesn't "count"? Isn't the point of a company's research team to develop profit centers that not only cover their own costs but then some? Because the way I'm reading this Apple's R&D is doing it better and more efficiently.

Re: Microsoft's quarterly profit drops below Apple's for the first time in 20 years

#80
post #79
post #42

Earlier quoted context omitted.

In fact, Microsoft spends around $2-2.5b on R&D per quarter [1] while Apple spends $500-600m [2]. That certainly more than makes up for the difference. [1] http://finance.yahoo.com/q/is?s=MSFT [2] http://www.google.com/finance?q=NASDAQ:AAPL&fstype=ii

So I don't understand. Are you saying that research money is essentially a donation so that's why it doesn't "count"? Isn't the point of a company's research team to develop profit centers that not only cover their own costs but then some? Because the way I'm reading this Apple's R&D is doing it better and more efficiently.

If you're comparing short-term profits it might be significant, in that it could indicate whether the profits indicate sustainable growth or just "eating the seed corn" via R&D cost cutting which sacrifices future profits. Though over a long period (but how long? years? decades?) it shouldn't matter, since as you point out if past R&D expenses were effective from a business POV they should be reflected in future profits.
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