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“Apple and Microsoft are on opposite trajectories in terms of their cash reserves” say recent reports, and we don’t really need those reports to tell us that either.  These differences have recently become more evident then ever, both from the fail of Vista and Apple’s rather large jump in market share.  Now, with recent three-year earning figures released, Apple’s increase compared to Window’s fall has been set in stone.  Three years ago, Apple had a pretty measly monetary reserve of only $5.5 Billion.  In comparison, Microsoft had a monetary reserve of $64 Billion.  Recent earnings reports show that Apple’s earnings have almost quadrupled, to $19.4 Billion.  In great contrast, Microsoft’s reserves to have plummeted to only $26.3 Billion.  Microsoft should be happy that their deal with Yahoo went through the floor, as they would have had to borrow a considerable amount of money.  Speculations show that Microsoft saved over $40 Billion in the short term. 

“The company’s overall decline is attributed to deliberate investment decisions, namely continual stock buybacks and special dividend payments, such as a $32 billion plan announced in 2004. In the most recent quarter, Microsoft bought back more than $1 billion of its own stock, a strategy which is likely meant to enhance the company’s EPS rating.”

Apple’s sharp increase in profits, fueled by Mac and iPod sales, has been enough to surpass even those of Google ($12.1 Billion), IBM ($12 Billion), and Intel ($10.9 Billion).  With Apple’s huge recent sales increases, both from the Mac and iPod, it seems like those numbers can only go up.

Read [MacNN]