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

Sizing up the NZ security spectrum - Where's the channel sweet spot?

Sizing up the NZ security spectrum - Where's the channel sweet spot?

From new extortion schemes, outside threats and rising cyber attacks, the art of securing the enterprise has seldom been so complex or challenging. With distance no longer a viable defence, Kiwi businesses are fighting to stay ahead of the security curve. In total, 28 per cent of local businesses faced a cyber attack last year, with the number in New Zealand set to rise in 2017. Yet amidst the sensationalism, media headlines and ongoing high profile breaches, confusion floods the channel, as partners seek strategic methods to combat rising sophistication from attackers. In sizing up the security spectrum, this Reseller News roundtable - in association with F5 Networks, Kaspersky Lab, Tech Data, Sophos and SonicWall - assessed where the channel sweet spot is within the New Zealand channel. Photos by Maria Stefina.

Sizing up the NZ security spectrum - Where's the channel sweet spot?
Kiwi channel comes together for another round of After Hours

Kiwi channel comes together for another round of After Hours

The channel came together for another round of After Hours, with a bumper crowd of distributors, vendors and partners descending on The Jefferson in Auckland. Photos by Maria Stefina.​

Kiwi channel comes together for another round of After Hours
Show Comments