Analyzing Cost of Revenue: Microsoft Corporation and Applied Materials, Inc.

Analyzing Cost of Revenue: Microsoft vs. Applied Materials

In the ever-evolving landscape of technology, understanding the cost of revenue is crucial for evaluating a company's financial health. This analysis delves into the cost of revenue trends for Microsoft Corporation and Applied Materials, Inc. from 2014 to 2024. Over this decade, Microsoft has consistently outpaced Applied Materials, with its cost of revenue growing by approximately 174%, from $27 billion in 2014 to an estimated $74 billion in 2024. In contrast, Applied Materials saw a 173% increase, from $5 billion to $14 billion in the same period.

Key Insights

• Microsoft's Dominance: Microsoft's cost of revenue surged, reflecting its expansive growth and market dominance.
• Steady Growth for Applied Materials: Despite being smaller, Applied Materials maintained a steady upward trajectory, highlighting its resilience in the semiconductor industry.

These insights underscore the dynamic nature of the tech industry and the strategic maneuvers companies must undertake to thrive.