This isn't the most earth shattering news but it is an interesting little comparison I think. It tells us something about the relative importance of Apple and Microsoft in the mobile phone markets. Microsoft's revenue from Windows Phone seems to be smaller than Apple's interest income from its cash pile.
The calculation of the Microsoft revenue is here. It's a nice piece of sleuthing by Adam Ballantyne, backing out some of the Microsoft numbers to leave us with a decent estimate of revenues applicable to Phone.
That estimate being $736 million for the financial year 2012.
If we go over and look at Apple's results we see this:
Other Income and Expense
period in 2011, and increased $239 million or 72% to $573 million during the first nine months of 2012 compared to the same period
Total other income and expense increased $116 million or 67% to $288 million during third quarter of 2012 compared to the same
in 2011. The overall increase in other income and expense during the third quarter of 2012 and the first nine months of 2012
compared to the same period in 2011 was primarily attributable to higher interest and dividend income on the Company’s larger cash,
cash equivalents and marketable securities balances, partially offset by higher premium expenses on foreign exchange contracts. The
weighted-average interest rate earned by the Company on its cash, cash equivalents and marketable securities was 1.06% and 0.76%
in the third quarters of 2012 and 2011, respectively, and 1.03% and 0.76% in the first nine months of both 2012 and 2011,
respectively.
Apple's cash pile is growing swiftly which is why their interest earned is doing so (for as well all know, interest rates themselves are still low). It wouldn't be unfair (indeed, it would be an underestimate) to assume that the fourth quarter will provide the same interest income as the third, giving us a total interest/dividend income for the year of some $860 million. This is, as we can see, larger than Microsoft's revenue from Windows Phone.
This isn't a definitive guide to anything at all of course. For a start we're not comparing like with like. But it is just a small insight into the relative positions of the two companies in the phone market.
Another little comparison. If we say that the fourth quarter will, for Apple, just be a repeat of the third (it won't be, not with the new iPhone coming out) then iPhone revenues will be around $80 billion. Or, if you prefer, Apple earns from smartphones every four days what it takes Microsoft the entire year to collect from the same market segment.
