Apple tops Microsoft on revenues

It wasn't so long ago that Microsoft was the biggest name in the business world and Apple was a struggling company just trying to stay afloat. What a difference a decade or so makes.

Microsoft posted its quarterly financial report today, showing revenues of $16.43bn and profits of $5.23bn. Compare that to last week's Apple quarterly figures in which revenues were $24.67bn with profits of $5.99bn.

Yes, Apple has surpassed Microsoft in revenues and profits. What was the difference? Well, the first word that springs to mind is 'innovation'.

Microsoft has relied on its position in the PC, server and search markets, but Apple has taken a leading position in booming markets such as smartphones and tablets. And it has paid off for Apple, as the iPhone and iPad lines have logged up tens of millions of units in sales.

Microsoft, meanwhile, faces an uncertain future. The company is looking to take a dominant spot in the smartphone market with Windows Phone 7, but it will be an uphill battle with iOS and Android on the market. Windows won't even get into the tablet space until the end of 2012 at the very earliest.

For the time being, it seems, Apple has regained a dominant position in the decades-old battle.