Apple reported 37.4 Billion USD revenue, around two billion more compared to the same quarter last year. Apple’s diluted earnings per share were 1.28 USD. The iPhone maker, which derives most of its business from the high-end smartphone, had its second straight decline in IPad sales, down nine percent year-on-year to 13.3 million units.

Some stormy weather for Microsoft and the latest earnings show the firm sheltering under a cloud. Microsoft Q2 profits were down seven percent with a quarterly profit of 0.55 USD per share. Their Q2 profit was 4.6 billion USD, compared to 4.97 billion USD in the same period last year.

Apple and Microsoft used to be seen as two very similar firms but, according to Stuart Miles, the companies are drifting apart. These earnings reports clearly show Microsoft is focusing more on cloud services while Apple is reinforcing its lifestyle brand appeal. Microsoft’s cloud division revenues doubled to 4.4 billion USD and the company’s server products revenue grew sixteen percent in the fiscal Q4.

Apple is seeing strong growth in BRIC countries, especially in China were iPhone sales rose by almost fifty percent. Despite the strong growth, Stuart Miles believes that Apple is facing a big threat from China. Chinese companies such as Xioami are selling high quality smartphones at around a quarter of the price of an iphone. Next year the Chinese tech company, which is only four years old, expects to ship 100 million smartphones as it expands its global sales operation.