The Motley Fool·2025-08-24 09:34Group 1: Company Overview - Apple and Microsoft, founded in 1976 and 1975 respectively, have remained relevant and profitable in a competitive environment, with share price appreciation of 688.4% and 992.5% over the last 10 years through August 15, compared to the S&P 500's 206.5% [1] - Apple's iPhone generated $44.6 billion in sales during the fiscal third quarter, accounting for over 47% of the company's total revenue, with a year-over-year increase of 13.5% [4] - Microsoft's fiscal fourth-quarter revenue grew 17% year-over-year, with adjusted operating income increasing by 22%, indicating strong performance across all business segments [10] Group 2: Product Performance - Apple's services business, which includes advertising, product support, the App Store, and payment services, generated $27.4 billion in sales, up 13% year-over-year, with a gross margin of 75.6% [6] - Microsoft’s Azure cloud services saw a 39% increase in sales during the fourth quarter, contributing to over $75 billion in annual revenue, with a market share of 20% [12] Group 3: Market Position and Valuation - Apple's iPhone global market share was 19% in the first calendar quarter, slightly behind Samsung's 20%, indicating competitive pressure [5] - Microsoft's stock gained 19.7% year-to-date through August 20, while Apple's shares declined by 10.3%, with Microsoft's P/E ratio at 37 and Apple's at 34, both higher than the S&P 500's P/E ratio of 30 [13]