Consumer technology companies reporting financial results this week are looking like rowboats bobbing in the wake of Apple Inc.'s supertanker.
Close to oblivion in 1997, Apple is now the world's second-most valuable company, after Exxon Mobil Corp. On April 20, it reported net income of $5.99 billion for the January-to-March period, nearly double that of a year ago. It shipped a record 18.65 million iPhones during the quarter. Its iPad tablet computers are so popular, the company couldn't make enough.
Apple's ascendancy has produced many losers and a few winners, as underscored over the past two weeks:
- Microsoft Corp.: loser.
Apple dethroned Microsoft as the world's most valuable technology company a year ago. In its mid-fall report, it surpassed Microsoft in quarterly revenue. In the January-March period this year, it surpassed Microsoft in net income, too.
On Thursday, Microsoft reported that revenue from the Windows operating system declined for the second straight quarter because people are buying fewer Windows computers.
Some prospective buyers are going to Macs instead - Apple reported that it sold 28 percent more units. Others are going to iPads. Goldman Sachs now believes that more than 30 percent of iPads sold may be replacing PC sales. In the 90s, the trend was the opposite, as Windows PCs were crowding out Macs.