“Apple’s business model focuses on making a profit on hardware. Surprise – they have more in cash than the entire net worth of Amazon, which makes the rival Kindle tablet line,” Brian S. Hall writes for Unwired View.
“Apple is also worth more than double Google, which makes nothing on hardware. In fact, Google may lose money on Nexus hardware. Their goal, of course, is to make that money back (and much more) in software and ‘soft’ services. To date, this strategy has failed – Android has cost more than it’s generated,” Hall writes. “Similarly, Apple is worth more than double Microsoft as well. Microsoft licenses its Windows Phone 8 platform and has long made nearly all its money off software. Apple is not just worth more than Microsoft, Apple’s profits are greater as well… Almost 90% of new smartphones sold in China use Android. These millions of devices, however, generate almost nothing for Google, Google Play, Google Maps, et al., due to China’s restrictions on Google and its services. I have to ask Larry Page: if Apple sells just 5 iPhones in China, say, or maybe 10, have they generated more profits in China than Google’s Android?”
Hall writes, “Both Google and Amazon continue to offer more and more free services to evermore demanding customers but the bottom line has not improved. Exactly how much do Amazon and Google need to give away before Apple can no longer make a profit on hardware? Or is this a completely backwards notion of the reality of the market? Show me the money! If software is eating the world, than the world is an empty, zero calorie meal.”
Much more in the full article – recommended – here.