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Microsoft Gives Apple a Noogie

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Whoa, what was that? Like an older brother weary of all the attention lavished on his younger sibling, Microsoft (Nasdaq: MSFT  ) has uncharacteristically snapped back with a "Don't forget about me!" statement.

The post, from vice president of communications Frank Shaw, is called Microsoft by the numbers and appeared on the official Microsoft blog last Friday during Apple's (Nasdaq: AAPL  ) astronomically successful launch of iPhone 4. While consumers were waiting for hours, salivating at the mere thought of fondling another shiny new Apple device, a Microsoft spokesman attempted to remind investors and consumers of all its past accomplishments, giving Apple the equivalent of a noogie.

For example, did you know 150 million copies of Windows 7 have been sold, making it "by far the fastest growing operating system in history"? Or that, while Apple iPad sales are projected at 7.1 million in 2010, there will be 58 million netbook sales and 355 million PC sales?

Or how about this shot at Apple, which has nothing to do with Microsoft: There were 8.8 million iPhone sales in Q1 this year, nowhere near Nokia's (NYSE: NOK  ) 21.5 million sold.

Finally, this one aimed squarely at investors who've driven Apple's market cap to $234.1 billion and Google's (Nasdaq: GOOG  ) to $146.1 billion, while Mr. Softy is stuck around $205.3 billion:

  • Apple net income for fiscal year ended September 2009: $8.2 Billion
  • Google net income for fiscal year ended December 2009: $6.5 Billion
  • Microsoft net income for fiscal year ended June 2009: $14.5 Billion

By the way, the three companies' P/E ratios are 21.8, 20.8, and 12.1, respectively.

If you read through the blog post, you'll see many more comparisons (as well as a great shot at salesforce.com), although some are misleading. For example, in the iPhone vs. Nokia sales figures there's no mention of the average selling price (much higher for Apple), or the fact iPhone has zoomed from nothing to a very decent market share since its 2007 launch (16%, according to Microsoft's own numbers).

I'm a Microsoft shareholder, and I'm holding for now because I like its valuation. But let me say this, Mr. Softy: Your little brother is taller than you now, and a better athlete. He just flat-out creates more excitement than you, and I doubt if that will ever change -- so get used to it.

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Fool analyst Rex Moore is both a PC and a Mac. Of the companies mentioned here, he owns shares of Microsoft. Microsoft and Nokia are Motley Fool Inside Value selections. Google is a Motley Fool Rule Breakers recommendation. Apple is a Motley Fool Stock Advisor pick. Motley Fool Options has recommended a diagonal call position on Microsoft. The Motley Fool has a disclosure policy.


Read/Post Comments (5) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 29, 2010, at 3:34 PM, disposableident wrote:

    It's all in the trends.

    Apple is inventing or re-inventing whole market sectors every year. Microsoft's product lines are mature and going nowhere fast.

  • Report this Comment On June 29, 2010, at 5:10 PM, hary536 wrote:

    Rex, then let me remind you that you cheekily removed the word "smartphone" from 21.5 million units sold. The number 21.5 million was for just smartphones, so you know that the total number of phones sold by Nokia is quite larger than 21.5 million.

    So, you are also not being fair. ;)

  • Report this Comment On June 29, 2010, at 8:15 PM, rajmago wrote:

    "But let me say this, Mr. Softy: Your little brother is taller than you now, and a better athlete. He just flat-out creates more excitement than you, and I doubt if that will ever change -- so get used to it"

    [SARCASM] Eloquently put Rex. [END SARCASM].

    The truth is that Microsoft stock has been unfairly beat up.

  • Report this Comment On June 29, 2010, at 10:08 PM, uc22 wrote:

    The fool once again doesn't get it. This wasn't a stab at Apple but a stab at the media. While I think everyone can agree that Apple is enjoying some well deserved growth, the media thinks that must mean Microsoft is failing left and right. They simply don't understand technology. They know Apple makes shiny cool stuff so the can identify. Instead of doing their research they pound Microsoft into the ground over and over. Then Microsoft releases strong quarter after strong quarter (even in 2009 when they had declines they had strong numbers compared to most companies) and everyone just scratches their head and says "well I guess they will fall apart next quarter". The fact is Microsoft is making a killing on Windows and Office as we know. They also make a ton on Sharepointe, SQL Server, Win Server, CRM and others. Heck, even XBOX is finally making a profit. However, all the media wants to talk about it search and mobile with an occasional mention of Zune. How does the media justify their lovefest of Google who makes money on one product but dismiss Microsoft who make so much more on several products? Don't get me wrong, I understand they are a mature company and growth prospects are not as good as some other companies but that doesn't mean they are getting ready to close shop either. I have never seen the media try to blind its readers about a company more than they do Microsoft ... and it has been going on for years. They don't see that people really are tired of the Death of Microsoft stories.

  • Report this Comment On June 29, 2010, at 11:55 PM, treat2day wrote:

    uc22 makes a strong arguement which states the media loves to belittle the "giant".

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