On Thursday, Microsoft became the 3rd company to hit the $1 trillion club, after Apple and Amazon. What’s interesting is that all three companies are tech companies. It continues the strong performance seen under CEO Satya Nadella, who has spent the past five years trying to lessen the firm’s reliance on its once-dominant Windows operating system.

Apple and Amazon

Apple was the first to hit this historic mark in Ausgust,followed by Amazon in September. However, both fell back towards the end of the year, but will probably rise again once they announce their quaterly results very soon. Microsoft fell back down to $991 billion.

How Microsoft reached this mark

Image Source: swarajyamag

While Apple makes more than 50% of its money from the iPhone and Amazon from its online store, Microsoft has been making money from many different sources. In 2018, Windows brought in about 18% of Microsoft’s revenue, while Office accounted for 25%. 

Its smaller gaming and Xbox division brought in about 9% while its own-brand hardware such as the Surface tablets accounted for about 5%. The much-ridiculed Bing search engine is also surprisingly profitable: its data powers some of the latest smart speakers including Amazon’s Alexa. 

Microsoft’s involvement in so many growing markets clearly has investors hopeful for its future.

Credits:

Cover Image Source: blockchain

Source: swarajyamag

 

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