For the first time in 20 years, Microsoft’s quarterly profits have dipped below Apple’s. Microsoft reported $5.23 billion in net income this quarter, compared to their rivals $5.99 billion. Most of the credit goes to the iPad, which has made the once-promising netbook market nearly obsolete.
“You have to live underneath a rock not to know that the iPad has taken share from the netbook. It’s a problem on the consumer side, and that’s a market where Microsoft continues to give up territory to Apple.” – Pat Becker Jr., Becker Capital Management Inc.
PC shipments have dropped by eight percent overall, and netbook shipments have fallen 40 percent. The revenue for Microsoft’s Entertainment & Devices Division, which is responsible for the Xbox, has grown 60 percent. Apple may finally be catching up, but Microsoft still has a long way to fall.