Asymco has released a report that compares Apple’s and Microsoft’s financial earnings. Asymco’s Horace Dediu compares product revenue from both companies to determine who has better financial performance.

Microsoft has its mind-boggling array of Windows products, along with multiple enterprise solutions. And there’s of course Windows Phone 7. Apple has all of its ‘i’ hardware, software, percentage cuts from the iTunes store, Mac sales, and peripherals.

So, who is the victor in the battle for revenue? You guessed it…

The results don’t make particularly good reading for the Redmond team, with Apple soundly beating the company when it comes to revenue results.

Dediu notes Apple’s considerable growth recently, with both the iPad and iPhone serving as key drivers for Apple’s increased earnings and stock valuation.

  • “The Mac business generates more Revenue than Windows
  • iOS powered devices generate more revenue than all of Microsoft’s products put together
  • Apple’s revenues grew 413% since Q2 2007 while Microsoft’s grew 26%
  • The release of Windows 7 had a marked effect on revenues in the launch quarter but the sales did not seem to grow above the previous version’s run rate ($4.2b/quarter vs. $4.7b/q on average).”

The most striking factoid to come out of the analysis is one that will put a smile on the faces of Tim Cook and his band of merry men. Apple’s iDevices make more revenue than Microsoft’s entire product line put together. Just read that over a couple more times.

With that in mind, it’s no great surprise that Mac OS X-based machines make more money than Windows, though that’s perhaps a case of comparing apples to oranges, if you’ll excuse the pun!

With Apple’s iOS business doing so well, and Microsoft struggling under the leadership of Steve Ballmer, what’s next for two of the most iconic tech companies on the planet?

The answer: profit. And lots of it. If you’re in the Apple camp, that is.

  • I assume the Mac business makes more revenue than Windows because you have to buy the hardware AND the software from Apple. Microsoft supplies only the hardware. So even though the PC-Mac percent ratio is 90-10, PC’s only make around $150 a computer (for a new copy of Windows XP/Vista/7, when they came out). Mac’s are at least $1000 a computer (and goes up to $2000, all starting prices by the way) which makes a ton more revenue. Revenue, not profit. As in, you can get billions of dollars from your products but if you’re paying X to make and sell at X+$1, you’re only making 1 dollar each, no matter how big X is.

    Either way, Apple is growing rapidly while Windows isn’t. There’s not much to debate, other than the few nitpickings I made above (which just shift perspective; the article is still true. Except for that last line :P).

    • Kevin

      Don’t you mean MicroSOFT makes the SOFTware?

      • Josh

        And the Zune, the not-so “iPod killer”! 😉

    • Dustin

      @AbuJaffer Microsoft only supplies the Software not the Hardware. The Vendors that make the Hardware (Dell, HP, Acer, etc;) will get the Software from Microsoft, which is Windows.

    • Anonymous

      Well, Microsoft makes both software and hardware. Hardware includes Xbox, Kinect, mouse, keyboard and other peripherals.

  • Josh

    I’d love to believe this, but no. It’s simply not possible. Too much fanboy-ism going around here.

  • Eljobso

    You are comparing apples to melons……lol

  • Yeah good news

  • fdxgncgfn

    Nothing special. Not only are Apple’s products completely overpriced, it also attracts millions of brainwashed fanboys around the globe

  • anon

    So you are celebrating the fact that Apple products are heavily overpriced? Really now…