Menu
INSIGHT: Apple vs. Microsoft… A tale of two quarters

INSIGHT: Apple vs. Microsoft… A tale of two quarters

As the quarterly financial results from technology companies roll in, the industry is presented with two similar but contrasting visions of the devices market.

As the quarterly financial results from technology companies roll in, the industry is presented with two similar but contrasting visions of the devices market.

“One is of an expanding market, of an underdog recovering its strength,” claims James Moar, analyst, Juniper Research.

“The other is of record-breaking sales and exceeded expectations in some places, while trying to ignore its decline in others.”

In Cupertino, Apple reported a record 74.5 million iPhones shipped, driven by strong sales in China and other Asian markets.

Over in Redmond, Washington, Microsoft sold a mere 10.5 million Lumias last quarter, while the costs of the Nokia acquisition still make a financial dent in the company’s fortunes.

iPad and Surface

“Other revenue streams tell a different story, and betray how different the two companies are, even if Macs and PCs are now based on very similar hardware,” Moar says.

Apple’s quarterly service revenues sit at $4.8 billion, up just 9% on last quarter, despite the partnership with IBM starting to bear fruit. Meanwhile, Microsoft has increased its commercial cloud revenue by 114% in the same period.

“While the absolute revenue from these services has some way to go to catch up with Apple, Microsoft is becoming a resurgent force in the enterprise,” Moar adds.

According to Moar, productivity is becoming a key focus for tablets, and is driving an increase in hybrid computer use.

“The Surface Pro 3 has revived the Surface line,” Moar claims. “Microsoft notes $1.1 billion in revenue, an increase of almost 25%, after its release.

“This is a very different story for Apple, which didn’t see fit to mention iPads at all in its press release. The reality is a 22% quarter-on-quarter revenue decline for the line, alongside another fall in unit sales.”

Going forward, Moar believes Microsoft has a lot of space to expand the Surface Pro range to the enterprise, while the currently dominant iPad must break into new markets or decline.

“Microsoft’s Surface devices may ultimately suffer a similar fate after several years as longer refresh rates take their toll,” Moar adds, “but by that time they are likely to have a stronger enterprise cloud position, which can then provide strong Cloud-based revenues until device sales pick up again.”

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags AppleMicrosoftJuniper ResearchSurface Pro 3iPad

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments