1. Microsoft vs. Apple Cassie Van Bebber Computer Applications S-3

2. Microsoft Operates World Wide Operates World Wide Operates in 33 US States Operates in 33 US States 54 US offices 48 th in the Fortune 500 Companies

3. Microsoft’s Financial Overview Consolidated Statement of Earnings Year Ending June 2006 (Numbers in Millions) Net Sales $ 44,282.00 Investment Income $ 1,790.00 Cost of Goods Sold $ 7,650.00 Total Expenses $ 20,160.00 Income Tax Provision $ 5,663.00 Net Earnings $ 12,599.00

4. Apple Operates US and Internationally Operates US and Internationally 36 US states 36 US states 181 US locations 181 US locations 159 th in the Fortune 500 Companies 159 th in the Fortune 500 Companies

5. Apple Financial Overview Consolidated Statement of Earnings Year Ending September 2006 (Numbers in Millions) Net Sales $ 19,315 $ 19,315 Other Income $ 365 $ 365 Cost of Goods Sold $ 13,717 $ 13,717 Total Expenses $ 3,145 $ 3,145 Income Tax Provision $ 829 $ 829 Net Earnings $ 1,989 $ 1,989

6. Thriving Company? Microsoft exceeds Apple’s Companies Microsoft exceeds Apple’s Companies Microsoft has less stores and made $24,967(in millions) more in net sales. Microsoft has less stores and made $24,967(in millions) more in net sales. Microsoft ranks 111 companies higher than Apple on the Fortune 500 list. Microsoft ranks 111 companies higher than Apple on the Fortune 500 list. Apple may be higher quality company Apple may be higher quality company Their goods cost more than Microsoft’s Their goods cost more than Microsoft’s Does that mean their products are of better quality? Does that mean their products are of better quality? Microsoft has an unfair advantage because more people own PCs so new computer owners are reluctant to buy Apple products Microsoft has an unfair advantage because more people own PCs so new computer owners are reluctant to buy Apple products Apple excels in spite of its handicap Apple excels in spite of its handicap

7. References Microsoft Annual Report Online- http://www.microsoft.com/msft/reports/ar06/staticversio n/10k_fr_bus_07.html Microsoft Annual Report Online- http://www.microsoft.com/msft/reports/ar06/staticversio n/10k_fr_bus_07.html Microsoft About- http://www.microsoft.com/en/us/default.aspx Microsoft About- http://www.microsoft.com/en/us/default.aspx Apple Annual Report Online-http://passthrough.fw- notify.net/download/522464/http://media.corporate- ir.net/media_files/irol/10/107357/reports/10K_FY2006.p df Apple Annual Report Online-http://passthrough.fw- notify.net/download/522464/http://media.corporate- ir.net/media_files/irol/10/107357/reports/10K_FY2006.p df Apple Contact Information- http://www.apple.com/contact/ Apple Contact Information- http://www.apple.com/contact/ Fortune 500 Listing- http://money.cnn.com/magazines/fortune/global500/200 7/companies/index.html Fortune 500 Listing- http://money.cnn.com/magazines/fortune/global500/200 7/companies/index.html