Wait a minute. How can Apple be like Google? Both are already gargantuan tech companies with hundreds of millions or billions of users and/or customers each day. Both make money hand over fist. Both are among the world’s best known brand names. One sells gadgets and one sells advertising so how are they alike?
“I’m All About That Base”
Google’s revenue and profit base come from search engine advertising, and the vast majority of that comes from desktops and notebooks, despite Google’s Android OS owning about 80-percent of the mobile device marketshare.
Apple’s revenue and profit base come from a mixture of integrated products that play nice-nice with each other, live and work well together in a cohesive ecosystem, and, unlike Google, Apple makes profits on pretty much every product line it introduces.
Where is Apple more like Google every day?
It’s all about that base. Google’s base is advertising revenue and profits, somewhere on the order of north of 90-percent, despite the company’s spending spree of tens of billions of dollars to diversify like, you know, Apple.
Apple is diversified, right? It makes boatloads of money everywhere; Mac, iPod, iTunes Music Store, Apple Store, Apple Store Online, Apple TV, iPhone, iPad. You name it, Apple knows how to squeeze revenue and big profits out of itself.
Here’s the deal.
Recent best estimates put the iPhone’s revenue at about 70-percent of Apple’s total revenue and both revenue and profits are growing faster than all other Apple product sources, despite their collective profitability.
Apple is becoming a one-trick pony techno gadget company and the pony’s name is iPhone.
Yes, the Mac is massively profitable and commands more than half the entire PC industry’s profits. Even the slowdown in iPad sales hasn’t thwarted Apple’s ability to make a profit. iPad probably makes more revenue and profits than the Mac. and certainly more than all tablet makers combined.
That said, the vast majority of Apple’s enormous pile of cash, revenue, and profits comes from the iPhone. Apple, the iPhone company, is becoming much like Google, the search engine advertising company, or Microsoft, the Windows and Office company. Apple remains more diversified with more revenue and profits than both competitors combined, but it’s increasingly Apple, the iPhone company.