Microsoft, Apple, and Google: How three tech giants have evolved in the 21st Century | ... - 0 views
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In 2002, the Desktop Platforms division accounted for 33 percent of Microsoft's total revenue. That percentage has been steadily dropping, and in fiscal 2013, the corresponding division (which now includes Microsoft's Surface hardware) was responsible for only 25 percent of the company's steadily rising total revenue. Server products, Office and other desktop applications, and cloud services increased steadily during that time. Looking at operating income (what's left of revenue after you subtract expenses) tells a more interesting story. From 2002 through 2004, Windows was the dominant contributor to Microsoft's profits, accounting for as much as 89 percent of total operating income. But that began changing in 2005 as those investments in enterprise software and cloud services began to pay off.
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"Over the past week, I've been blowing the virtual dust off more than a decade's worth of annual reports from Microsoft, Apple, and Google. My goal was to follow the money and figure out how each company's business has changed over the past decade. Consider this a follow-up to my February post, "Apple, Google, Microsoft: Where does the money come from?" My tally starts with financial results for 2002, the year after Microsoft signed a historic consent decree that settled the U.S. v. Microsoft antitrust lawsuit. It was also the first full year after the introduction of the iPod, which was the first step on Apple's transformation from a PC company to one that revolutionized mobile computing and communication. The earliest annual report I could find for Google was from 2003, the year before its big IPO. In Microsoft's case, the question I was most interested in was "How dependent is the company on Windows?" The Windows monopoly began crumbling as soon as the settlement was signed (although it's debatable how much influence that lawsuit had on the market). Over the past 10 years, Microsoft has shifted its reporting structures a few times, making it hard to draw perfect comparisons over time. But the chart below, which shows revenue from the desktop versions of Windows and related products, is close enough."