Apple And Microsoft: The Fight For Competition

For the Income statement I will be using Apple as my primary source for this part of the written assignment. The operating performance of Apple is doing good overall, they have a net income worth of 59,531 in terms of millions according to Apple annual 10k. This is a huge improvement over their last net income which was 48,351. Aside from that, the total net sales of iPhone in 2018 is 166,699 out of the total net of all the product which is 265,595. The nets sales of iPhone in 2018 is a massive increase over the net sales of 2017 which was 141,139. The increase in net sales and net income is largely due because of the iPhone X, XR, and XS max. The cost of the products ranges from a thousand to half of two thousand which helps increase profit. The manufacturing of the iPhone X cost Apple roughly about 443 and the rest of the cost is a huge profit gains according to the New York Times. Although the cost of Apple phone isn’t comparable to some of the cost for Microsoft computer, they managed to have a larger net sale. Microsoft doesn’t record the net sales of their company but, the overall net income of Microsoft is about 16,571 and the revenue that they generated is about 110,360. The revenue of Microsoft seems great but, the net income isn’t even closed to Apple. Sadly, Apple didn’t record the revenue but, Beckerhospitalreview, an online news company estimated Apple revenue around 260 billion. 

If this is true, it means that Apple revenue is monstrous compared to Microsoft tiny portion. Another portion of the income Statement is the operating expense of the company. Apple total operating expense for the year of 2018 is about 30,941 compared to Microsoft overall operating expense which is 2.9 billion. The main reason why Microsoft has a high overall operating expense than Apple because they drive to increase technology. Microsoft increased operating expense so that they can increase Artificial Intelligence, Gaming, engineering and another activity. Although, Microsoft has a high operating expense, it is nowhere close to Apple’s advertising expense which is estimated around 53.4 according to Medium. The last main account for the income statement is the cost of goods, sadly, Apple didn’t record their cost of goods. Luckily, Macrotrends, an online trend finder, estimated Apple cost of goods sold which was 163.756 billion. This cost of goods sold is significantly larger than Microsoft which was 42.91 billion according to Macrotrends. The cost of goods show that the company can sell their products and Apple seems to be the one who can outsell Microsoft. Overall, Apple is having a profitable year in 2018, they are able to have a large net sales and higher cost of goods sold than Microsoft.