A tale of two other business models
Apple today announced financial results for its fiscal 2007 second quarter ended March 31, 2007. The Company posted revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share. These results compare to revenue of $4.36 billion and net quarterly profit of $410 million, or $.47 per diluted share, in the year-ago quarter. Gross margin was 35.1 percent, up from 29.8 percent in the year-ago quarter. International sales accounted for 43 percent of the quarter's revenue.
Apple shipped 1,517,000 Macintosh computers and 10,549,000 iPods during the quarter, representing 36 percent growth in Macs and 24 percent growth in iPods over the year-ago quarter.
Microsoft's revenue for the quarter rose 32 percent to $14.4 billion, and net earnings rose to $4.93 billion, or 50 cents a share, from $2.98 billion, or 29 cents a share, in the same period last year. Both figures benefited from the deferral of $1.67 billion of revenue from the previous quarter to account for the Windows and Office upgrade coupons distributed late last year. Even better, from the analysts' point of view, was that there were no unpleasant surprises in the company's outlook, with earnings forecast between $1.68 and $1.72 a share for fiscal 2008, and revenue between $56.5 billion and $57.5 billion.