As technology companies go these days, they all have commonalities, and they all have their differences. Here’s a quick look at similarities and differences between Apple and Google, but first, a throwback to other competitors.
Samsung is a conglomerate with many business units, but most of the revenue and profits come from making components for competitors; chips, CPUs, screens, etc. Microsoft is a two-trick pony made of Windows and Office. The company has wasted billions to diversify itself beyond both, without success. What of Apple and Google?
The Same. But Different.
Since the turn of the century Apple has engaged in revolutionary conduct, launching hit product after product; all profitable. Apple and the Mac were once synonymous. No more. Most of Apple’s revenue and profits come from the iPhone.
That makes Apple somewhat like Google, where most revenue and profits come from one source– traditional search advertising. That’s about where the similarities end. Apple’s product line, though combined don’t make iPhone-like revenue and profits, are the envy of the tech industry.
Apple Stores, iTunes Store, App Stores, Apple TV, iPad– all highly profitable. Despite the iPhone garnering the majority of the company’s revenue and profits each quarter, Apple is a multi-trick pony operation where every component makes money.
Google has issues with the core business. Search engine advertising just isn’t what it used to be, but like Microsoft’s Windows and Office, still reigns supreme despite the company’s tens of billions in investment to diversify.
Google touts itself as a technology innovator, and that’s true as far as it goes; the company innovates how it extracts personal data from users (Google has few customers, relative to Apple or Microsoft). Google’s attempts to make money from Android have yet to provide a return on the investment. Self driving cars, internet balloons, Google Glass, and other public displays of R&D are a mere smokescreen to cover up the mismanagement of the company’s many diversification efforts.
Reports say about 75-percent of Google’s mobile device revenue comes from Apple’s iPhone and iPad, which means the search engine giant is highly dependent upon the good graces of Apple to make mobile work.
So, Apple has become a bit like Google– but only in that the iPhone has captured the majority of the company’s revenue and profits. Every other product line of significance says Apple is well-rounded with a profitable product line that integrates features and functions far beyond Android and Windows phone.