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Apple’s growth rate bears fruit

Tuesday, 6 February 2007 — by Wayne Smallman

If I were to become a millionaire while trying to make Octane more of a success, that would be purely incidental. I sort of get the feeling a similar sentiment could surround a recent set of figures surrounding Apple’s projected growth rate, which is expected to top those of industry behemoth Microsoft by as soon as 2010.

“The growth projection showed that, if current trends continue, with Microsoft growing linearly and Apple growing exponentially, that Apple could surpass Microsoft’s projected US$65 billion earnings as early as 2010.

The growth chart showed that in the 2002 to 2004 time frame, Microsoft’s quarterly revenues were typically five to six times Apple’s.”

We’ve all heard of Steve Jobs make his comparison between Apple and the likes of Porsche and Mercedes, and that Apple enjoy sweet success in their own niche.

Some of that is Jobs and his penchant for playing with words, but some of it would seem truthful, too.

However, I can imagine nothing more satisfying for Apple and specifically Steve Jobs than to coast past Microsoft by 2010 in the earnings stakes and play down the whole affair as a huge non-event with some spectacularly low-key quarterly financial filing issued in dry, numerical accountancy speak.

It’s pretty amazing to consider how Apple would achieve such a huge growth range, especially when you consider that Microsoft’s vast portfolio of software and hardware totally eclipses that of Apple.

Which does ask some very serious questions of Microsoft. For example, if Microsoft do have such a hugely diverse portfolio of software and hardware, some of those offerings are clearly performing poorly.

Assuming this growth prediction were to come to pass, I’d imagine that at or around the time of the event itself, Microsoft would be quick to downplay the whole affair much more strenuously than Apple.

After all, this kind of thing is the sort of incident that shakes down shareholders and makes money move. And in the case of Microsoft, money would be moving in the wrong direction…

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