At the close of trading yesterday, Apple, Inc. had a larger market cap than Google. Apple has been on a tear this year, launching new products like the iPhone and selling record numbers of Macs. Google, on the other hand, is starting to get hit by the slowing economy and has failed to launch a significant revenue generator. And don't even try to compare the iPhone to Android. The latter is hasn't even been released to the public, and it's not clear how it will make money for Google.
Apple today dropped just slightly under Google's market cap of roughly $159 billion, but yesterday's close was enough for my former editor at Valleywag to toot my horn. Nine months ago I laid out a case that Apple would soon be worth more than Google.
My general hypothesis was that Apple has created not just gadgets, but several significant businesses around the Mac, iPod and iPhone, all with separate but related revenue streams. Apple makes money from selling hardware, selling software and selling media like music and applications for the iPhone. And Google? It's just a one-trick pony -- advertising.
More news, commentary, and predictions from The Industry Standard:
- Prediction: Apple's iTunes to displace Wal-Mart as largest music retailer in U.S.
- Analysis: How MySpace Music could beat iTunes
- Analysis: The big merger of 2008: The mobile phone and Web
- Analysis: Why podcasting is failing
Hosted by Tom Sullivan, stay abreast of the latest IDG content covering IT news, product reviews, best practices, and white papers.
Comments
There difference from make money and revolutions.
ok, you can have both as google. But if you want to make the big cash forget about revolutions: you need to make like apple, take old (cheap) stuff already inventend...then redesign it to convince people with money that's the innovation.
you need few seconds over google earth 3d software, google books etc...to see who's making innovations. Another look to who buy overlock iPhone, instead, and you see who's making money.
Jordan, great call! Hope you bought some apple stock a couple years ago.
Good on ya!
Always nice to be right. And I see your argument.
My question is -- who is going to be worth more in 6 months? 2 years?
As an investor, my concern with Apple is that they are totally a cult of personality. When Jobs goes, Apple collapses. My sense is that Google will survive even if both founders left. And who knows what the real truth is about Jobs' health? I don't. But it's likely that the Google guys are around longer.
Post new comment