For much of the past few years we certified Apple Watchers™, and the public in general, have been treated to scathing criticism of Apple’s business model, to the point where some expected the company to fail by now.
Former partner and current nemesis Google was heralded as the tech industry’s new model for successful innovation, thanks to Android OS’s 80-percent marketshare. How could Apple survive let alone prosper? Amazingly, Apple does much that’s right, while Google’s been doing much that’s wrong, and Wall Street seems to have taken notice.
Touch, Feel, Read, Weep
A simple, brief synopsis of the differences between Apple and Google won’t take many words. Apple is about feel and emotion while Google has become sterile, devoid of personality.
Think of it this way. Apple has a face. Google does not. Apple has stores filled with customers and helpful staff. Google does not.
Apple has a Genius Bar with someone to help out when a problem arises, classes to teach customers how to use an already easy to use product. Google does not. Apple has a rich and full product line of hardware and software– from desktop to notebook to smartphone to tablet, including a diverse distribution system. Google does not.
What Google has is a playful logo, an easy way to search the web (if you’re using a Mac or PC; on mobile devices, not so much), and a lot of your personal information.
Apple has a reputation for security and customer privacy. Google does not. In fact, it’s more common knowledge today that to Google you’re a user, not a customer; you’re part of the product whereby Google gets paid for how much it knows about you.
Apple has customers who stand in line to buy the latest products (go to any Apple Store for proof). Google does not. Apple is happy to get rid of hot selling products and replace them with products that sell even more. Google has decided to stop selling its best Nexus phone, replacing it for a larger version that apparently few people want.
Here’s the kicker, and the one that has Wall Street putting the skids on GOOG while pumping up AAPL.
Apple is a vastly diversified company where every product line makes loads of profit (iPod alone probably makes more than any other smartphone and tablet maker, sans Samsung) on each one. Google is a search engine advertising company where 90-percent of revenue and profits come the old fashioned way.
What Apple does right these days is mostly what Google is doing wrong.
AdamC says
I think it was Morgan Stanley that talked up google when WS was dumping it so it did recovered.
Yes still loved by WS.
ben says
Except that GOOG is down for 2014. So much for being talked up by Wall Street. It should be obvious from performance in 2014 that both GOOG and AMZN are not longer the favorites they once were, the former a one-trick pony advertising company, the latter unable to make a profit in an industry where many online entities make money hand over fist. AAPL is being rewarded because it has outlasted competitors, carved a highly profitable niche, and every business segment is highly profitable.