Apple Now Worth More Than Google - InformationWeek
IoT
IoT
Mobile // Mobile Applications
Commentary
8/13/2008
07:44 PM
Thomas Claburn
Thomas Claburn
Commentary
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%
RELATED EVENTS
Ransomware: Latest Developments & How to Defend Against Them
Nov 01, 2017
Ransomware is one of the fastest growing types of malware, and new breeds that escalate quickly ar ...Read More>>

Apple Now Worth More Than Google

At the close of the stock market on Wednesday, Apple's value as a company surpassed Google's. Apple's market capitalization reached $158.84 billion; Google's settled at $157.23 billion.

At the close of the stock market on Wednesday, Apple's value as a company surpassed Google's. Apple's market capitalization reached $158.84 billion; Google's settled at $157.23 billion.Silicon Valley tech gossip blog Valleywag predicted as much back in November 2007 based on the strong performance of Apple's iPhone and the fact a Google phone was nowhere to be seen.

Nine months later, there's still no Google Android phone on the market and Apple's iPhone 3G remains in short supply. Not only that, but Google has nothing yet that can challenge Apple's iTunes tollbooth.

Google has demonstrated its might as online advertising's middleman; it has yet to show that it can win the loyalty of phone buyers. And it needs to do just that, soon, before Apple's iPhone achieves the kind of dominance that its iPod has in the music player market.

Google doesn't yet have a diversified revenue stream like Apple does. And it still depends on the forbearance of Microsoft and Apple for distribution. It has user loyalty, but not much leverage, particularly where Internet browsers aren't involved. If users of computers and phones start leaning toward Internet-enabled apps like iTunes rather than browsers, Google will find it much harder to keep its foot in the door.

And that's the way Google's competitors will erode Google's position. They won't beat Google as a search engine. That ship has sailed. But what they can do is change the nature of the playing field. That's what Apple is doing.

Google's brand-advantages on computers -- ease of use and speed -- aren't as important on phones. Touch-driven apps work better on phones than apps like search that require text input, and speed is a carrier issue rather than a function of Google's massive infrastructure. What's more, ads on phones remain unproven.

So if Google wants to remain relevant in the post-PC era, it needs to get serious about hardware. Google needs a phone, and possibly a PC. It needs to discover its inner gatekeeper and to rethink its role as a middleman. That path leads to hardware. Sure, Google has partners that make phones, but when you want something done in the tech industry, you don't leave it to partners.

If Google could make phone use free through advertising, then it would be a different story. But the mobile carriers aren't about to give up their monthly fees for a share of the pitiful mobile ad pie.

Wall Street is wise to what's happening, Google. Think different. Think hardware.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll