This is a striking example how an innovative company can reap profits in such a short time!
The iPhone did not exist five years ago. And now it’s bigger than a company that, 15 years ago, was dragged into court and threatened with forcible break-up because it had amassed an unassailable and unthinkably profitable monopoly.
The iPhone also appears to be considerably more profitable than Microsoft. In the December quarter, Apple’s iPhone business generated $24.4 billion of revenue. Microsoft’s whole company, meanwhile, from Windows to Office to servers to XBox, generated $20.9 billion.
If we assume that Apple generates the same operating profit margin on its iPhone business that it generates on its overall business–38%–the iPhone business generated about $9.3 billion of profit in the December quarter.