From my perspective as an Apple customer and a Google user, I see Apple in the driver’s seat, and Google struggling to diversify its product line. How so? Google was and remains an advertising company. The search engine giant pays Apple a few billion dollars a year simply to keep Google as the default Safari search engine.
That means Apple is worth more to Google than critics let on. Of course, Apple loves the pure profit that comes from that arrangement, but after many years of working on hardware, Google’s revenue and profits still come from the old fashioned source. Advertising. Reports say Google sold about 4-million Pixel phones last year.
Apple sold more than that in a week.
Google’s Home talking speakers are all the rage, but Apple’s single product HomePod takes the revenue share of the industry. No, I don’t think marketshare is an important metric. Apple has never been a company to chase marketshare. Revenue and profits are a more valuable metric.
Of course, Google isn’t really Google anymore. The corporate name is Alphabet Inc. Yet, after spending many tens of billions to diversify the product line, the company remains much of what it was not long after it started taking on advertising revenue.
An advertising company.
Alphabet’s portfolio encompasses several industries, including technology, life sciences, investment capital, and research. Some of its subsidiaries include Google, Calico, Chronicle, GV, CapitalG, Verily, Waymo, X, Loon and Google Fiber.
Any monetary successes on that list? No.
Compare that situation with all those Alphabet (Google) companies that don’t add much to the bottom line to Apple Inc. where iPhone, Mac, iPad, Watch, AirPods, Beats, Apple Music, et al are market leaders in profits.
The establishment of Alphabet was prompted by a desire to make the core Google Internet services business “cleaner and more accountable” while allowing greater autonomy to group companies that operate in businesses other than Internet services.
Translation: We can’t stay Google forever so let’s spend some money to diversify.
In essence, Google (Alphabet) wants to be more like Apple; diversified. In reality, Google pays big bucks to Apple just to stick around. How is that not a big fail to the search engine giant? Google (Alphabet) shoots for big pie in the sky technology ideas, while Apple’s disciplined approach actually brings products to market, and they work well in the company’s highly valued and well polished ecosystem.
No matter how you look at it, Apple is Google’s big fail of epic proportions. You don’t read much about that in the pro-Google anti-Apple technology rags, though.