That’s according to Horace Dediu for market research firm Asymco, who tonight outs a rather interesting report in which the analytics body compares the fiscal earnings results of both Apple and Microsoft between Q3, 2007 and Q2, 2011.
The goal, Dediu explains, was to determine which company is currently performing better financially.
The report found that Apple’s iOS devices business – (iPhone, iPod touch and iPad) – alone generated more profit for Apple than Microsoft’s enter product line did in the same period. Microsoft’s product line includes its Windows and Windows Live division, set of Server Tools, Online Services Division, Business Division and Entertainment and Devices division.
Moreover, Apple’s Mac (OSX) business was found to generate more revenue than Windows.
Other highlights include:
- “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).”
Summing up, Dediu places the blame regarding Microsoft’s slow growth not on innovation and design, but concentration on growing its existing business(es) rather than creating new categories and growing those alongside.
But most importantly, whereas Apple’s growth has come from new businesses (iPhone and iPad), Microsoft has organically grown existing businesses. The condemnation of leadership at Microsoft should hinge on the absence of significant top line growth. Note that neither the Online Services nor the Entertainment and Devices divisions had appreciable net growth.