Wall Street doesn’t see Google announcements causing worry for Apple

“Google this week announced a number of new products and services for phones, tablets, cars, TVs and more, all of which will compete with Apple. But after seeing Google’s latest, Apple-watchers on Wall Street aren’t concerned,” Neil Hughes reports for AppleInsider.

“During its keynote presentation this week, Google revealed that it has paid $5 billion to Android application developers over the last 12 months. Analyst Timothy Acuri of Cowen and Company issued a note to investors on Thursday, a copy of which was provided to AppleInsider, saying the amount Google paid to developers in the last year shows that Apple’s ecosystem continues to generate more money for developers,” Hughes reports. “Acuri noted that Apple paid out around $8 billion to developers in calendar year 2013, and that was about 100 percent year over year growth from 2012. With iPhone sales continuing to grow and the installed base of users larger than ever, he believes developer revenue growth has continued into the first half of 2014.”

“If App Store purchases have grown at the same rate thus far in 2014 as they did in 2013, that would imply that Apple is still generating twice the aggregate trailing 12 months revenue as the Google Play Store. This despite what Acuri estimates is an installed base about half the size of Android’s current monthly active users,” Hughes reports. “Acuri remains bullish on AAPL stock with a price target of $102. ‘We expect Apple’s ecosystem to remain the dominant platform for developers for the foreseeable future,’ he wrote.”

Read more in the full article here.

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18 Comments

  1. “Wall Street doesn’t see Google announcements causing worry for Apple…”

    ..as for users of software and services based on these announcements, they have A LOT to be worried about.

  2. To be honest, if stuff plays out as correctly as in Google’s playbook, Apple should worry. Almost every aspect of the Android has seen a significant improvement. On top of that Google seems to have created a seamless ecosystem. Apple does the same but Google does it cheaper and with a degree of cross-platfformism.

    At the I/O Google showed that they were clearly committed in creating an immersive user experience with android taking front and center across a bunch of different smart devices.

    The downside? One acronym, OEM’S. I don’t get why they have to extensively customize Android. Why don’t they just make intuitive and innovative hardware features and software features based on Google’s design.

    Apple may choose to stick to the lucrative premium market but will happen when users start to realize that you can get that premium experience at a cheaper cost.

    1. Your logic is flawed. The only folks selling Android hardware that are turning a profit are the ones that sell premium lucrative devices. So were is the cheaper not fragmented secure alternative to the iPhone?

    2. but [what] will happen when users start to realize that you can get that premium experience at a cheaper cost.

      And what ‘premium’ experience would that be? It’s not Android. Sorry kiddo, but you get what you pay for. That’s the point of paying a premium above the cost of wannabe cheap knockoffs like Android gear. 👿

      1. Thanks for the correction.
        You seem to be against devices gating cheaper not everybody is as privileged as to be able to afford an iPhone or the expensive Android flagships.
        I’ve had the Android L developers preview on my phone since morning and I dare say that it might be the best UI experience on a mobile device out there iOS 7 included.

        1. I’m sorry. Around here it’s Fight The Plagiarists mode 24/7. If cheap does what you require, go cheap! Setting aside all the tech warz rhetoric: Get the device that does what you need that you can afford.

          I always research to the max whatever I need to buy, digging around in reviews, comparing specs, checking out value to cost ratio etc. I’ve used personal insight to help me dig into the data to understand what’s actually going on. One of my choice finds was a refurbished Panasonic VHS/DVR that was an incredible price. The reviews sucked to a large extent because the programming was so complex that it flummoxed average users. I saw through that and realized it was brilliant tech. I love the thing. Unkillable.

          I have not yet watched the Google IO presentation. One developer in Aus I follow had mixed comments about UI elements, specifically the icons. My POV is that if its ACTUAL competition with Apple, then bravo! Apple requires competition. What I resent is Google’s and Samsung’s blatant and consistent ripoff of Apple. Where they actually invent and innovate I gladly cheer them on. Pile on the competition! Always a good thing in business markets. I can’t abide monopolistic behavior, thus my long term battles and string of articles about nasty Time Warner Cable, my abominable local cable provider/ISP.

        2. You feel its the best because your are a geeks and tinkerer, just like me. I have had it too on my phone, I gave it to my wife and she does not feel the same way you feel about it. She just put the phone away under a minute.

          What we geeks have to realize and get in our head is that the “Critical Mass” does not care about the things we care about when it comes to phones and OS’s, they just want a simple and intuitive device that just works and works well as advertised, and in that sense, and currently, the iPhone is the only device that meets those needs.

          Lets face the facts.

    3. Google’s Announcements as usual are mostly P.R B.S:

      remember
      Eric “The Mole” Schmidt:

      “By the summer of 2012, the majority of the televisions you see in stores will have Google TV embedded in it,”

      compare their announcements vs what they usually do (like Google + will defeat Facebook, Google Glass will be next big thing, Motorola will be their triumphant entry into hardware ) ETC and it’s easily seen as P.R crap and pipe dreams.

    4. “if stuff plays out as correctly as in Google’s playbook”

      Honestly, really? If anything played out according to any company’s playbook every other company would have to worry. How did RIM’s playbook work out? How about Palm’s? Dell’s? Microsoft’s? etc…

      You seem to have overlooked a huge obstacle … who is going to have and use any of these new-fangled things? And since when has anything Google said ever panned out? Remember the promise of Honeycomb and how it was going to make iPads irrelevant? That never got above 3% share of the Android installed base.

      “Google seems to have created a seamless ecosystem”

      Where? In the demos on stage? All new hardware, running all new software!? While that looks great up on stage, it doesn’t speak anything of the real world, where OS updates are few and far in between for Android users, who will never see this “seamless” ecosystem. And hardware is all over the place in terms of capabilities.

      Android fans always go gaga over the latest and greatest release, but the fact is, very few users will get a chance to use it, at least not until a couple of years down the road when they decide they can afford a more expensive Android device.

      Throwing Android on every device imaginable doesn’t make an “ecosystem” more seamless – that comes from the ability for those devices to work with each other.

      “I don’t get why they have to extensively customize Android”

      Because they want their devices to stand out from their competitor’s devices. iOS IS NOT THEIR ONLY competitor. To an OEM – a maker of hardware, it’s not about iOS versus Android versus Windows, it’s about my device versus theirs. All OEMs compete with one another for customers. HTC, LG, Motorola (Lenovo)… they do not make money from Android’s majority marketshare numbers, they make money from selling their hardware. Their biggest competitor is not Apple, it’s Samsung. Why? Because most people who want an Android device, choose Samsung.

      Analysts and bloggers (and Google) would like you to think it’s only about iOS vs. Android, but it absolutely IS NOT. I’m willing to bet that OEMs are furious that they can’t do enough to make their devices stand out from any other on the market unless they spend billions and billions on marketing every year. That was the ENTIRE point of them moving to Android in the first place; the promise of being able to “skin” the operating system and make it their own. To differentiate their devices from their competitors’.

  3. No way did Google pay out that much to developers. Do Android user actually pay for anything, ever? Then again they may have because they might count those apps that do absolutely nothing but charge you and steal your money. Ah, I see the story, $5B counting all the stolen money they didn’t bother getting back for the consumers. Basically the credit card companies take it in the shorts and that is passed to the consumers so, we are paying for Google.

  4. I haven’t gotten iOS 8 because I am yet to buy a new iPhone. I have used it though and it is good. The iOS 7 design with great features implemented from Android with some re-imagination. I am excited about Android L because Google’s new material design is very refreshingly new.

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