Why Apple will be bigger than Google

“Time has named Apple’s iPhone its invention of the year. The iPhone is a big deal, but not for any of the reasons Time cites. The nonrelease of the Googlephone just highlights what Apple gets about consumers, and what Google doesn’t. Apple knows how to design not just gadgets, but the businesses that go around them. And as a result, I wouldn’t be surprised if Apple is worth more than Google within two years,” Jordan Golson writes for Valleywag.

“What’s really innovative about the iPhone? Well, the multitouch screen, perhaps. But other than that, its commodity parts expertly engineered together. If Apple sells 50 million iPhones in 2009, those phones will generate more than $30 billion in gross profit over the next two years. And when I say gross profit, I mean really gross,” Golson writes.

Golson writes, “Apple’s iPhone is more than just an invention. It has all the makings of a killer business. As for Google — weren’t they going to make a phone once?”

Full article here.

28 Comments

  1. There is a partnership between these two companies, they share members on the board. I can’t imagine that even if Google were to produce a phone, that it’d compete in the same space as Apple’s.

    And a thought occurred to me that maybe – with VOIP – the gPhone is infact the iPod Touch, that’d have this feature built in. This wouldn’t affect the ATandT contract and could nip MS in the bud from producing anything in that area either. What I’m not sure about, is how that’d affect the iPhone [ie. whether it’d cannibalise sales of iPhone]. I think not, IF the phone feature is restricted to VOIP.

  2. If they partner, I hope it’s to get this 700mhz spectrum that’s being auctioned in 08. Future content delivery is going to be based on fat wireless pipes because laying fiber is too damn expensive and will take too long to implement.

    If Apple gets this spectrum, or access to it, look for lots of great ways to use your iphone in the coming years.

    It’s all about content delivery now.

  3. Everyone brags about google Gmail, but when I last looked, it’d been beta for 2 years, and what’s to say it won’t be free, or exclusive when it does come out. This style of management may elude the less savvy, but I personally have to question their goals.
    When you really compare them to Apple, there is no comparison.

  4. In the long run, I see a partnership between the two companies being the key for both to succeed.

    Apple may in fact need Google more in terms of on-line applications and cloud services. Together they shall conquer, separate they may fall to MS and the gang.

    About dollars and cents…
    if that is all you care about… then you don’t understand Apple.

    Get some sense.

  5. It’s obvious Google and Apple are working together to offset Microsoft. Microsoft competes in the low end and the high end. Apple only competes in the high end, and Google only competes in the low end. Having a Gphone gives Apple space to focus on the iPhone, and vice versa.

  6. Ahhhhhhh, we all have been “Dutched Ovened” by
    p shanks comment !!!

    Yeah… lets just make Google totally EXCLUSIVE
    to Apple and Safari users.

    Great idea. Doh! Once Apple is worth more and buys out Google.

    NOT… I think Apple has better plans.

  7. What Google is doing is taking advantage of the fractured OS status in the mobile phone market. There are so many OSes in mobile phones, and none of them work very well. Throw in the fact that Microsoft doesn’t have a stranglehold on the mobile OS market, and it’s ripe for someone to come along and produce an OS which makes using mobile phones easier.

    I find it amusing that these experts think Google is just going to “make a phone,” like it’s an easy thing to do and like Google can do it just because Apple did.

    What these experts forget is that Apple is a hardware company first. A hardware company which realized early on that the success of its hardware is the ease and pleasure with which the consumer can use it. Hence, Apple makes great software to use on its hardware. Apple lives off of its Mac, iPod and iPhone lines. OS X, iLife, iWork, etc. support the hardware lines.

    Google is a software company. Google has no experience – nada, zilch, zip – in hardware design, let along hardware design which could even approach Apple’s abilities. Google could invest billions in hardware designers, engineers, facilities, materials, and come out with just another phone. It makes much more sense for Google to capture the mobile phone market (that which Apple doesn’t grab) via software, not hardware.

    There won’t be a Gphone, not unless Google partners with some handset maker to produce one. And if that’s the case, it won’t be anything special.

  8. I really don’t think that she gets it. Yes the first part is right, but “you have to skate to where the puck will be”. Apple sells on the high end (oK middle to high end). There really is little profit in selling loss leaders. 🙁

    And Google sells information and services paid for by ad revenue. That is their business model. Google might support a goggle phone but I just do not see them making one. Not in their business model. And in 2-3 years when Google gets the phone makers — sort of — playing nice and using common software, where will Apple be then???

    Its a complex game and only Apple knows where its going but I will guess its in the “integration and simplification” arena. Places like that bring toys and fun to the average person and take the ball away from Microsoft (who just wants to make it fancer and harder to do — aka their “home media server” LOL ) PS, why would any average person (who can barely use their computer now) want to add another level of computing skill required (aka adding a server) to their life. Apple already automatically acts as a group server for both Apple and PCs and Appletv etc. If you have iTunes you already have a server system in your house. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    Later,
    en

  9. Google is doing what Google should be: focusing on their core business, which is offering “free” products supported by ad revenue. The only way to expand this revenue is to expand to new markets, and in the cell phone market with the fractured OS’s this would be difficult so they designed their own.

    Don’t fool yourself, the purpose of any google endeavor right now is to generate ad revenue. They are just a glorified advertising agency that uses technology as their means. Gmail is a great example. Sure, it’s free email, it’s all wonderful, but you have to agree to let them scan your email for keywords and show you targeted advertising. I’m sure it will be much the same for the services on the phone. It’s just how google rolls. I’m sure it’s only a matter of time before Youtube has some form of text-ads or something… it’s already being used by companies for advertising TV shows and such, not to mention viral advertising.

  10. “Interesting to see if Google is really interested in making hardware.”

    Have you all been living in cave for the last week? They have already published that they have no interest in making the hardware, only working with other phone vendors.

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