Go figure: Google’s ‘more valuable’ than Apple, but Apple’s iPhone takes 94% of smartphone industry’s profits

“Alphabet Inc. might win the market cap battle against Apple Inc., but will it win the war?” Sayantani Ghosh and Supantha Mukherjee report for Reuters. “Maybe not.”

“The median share price forecast of 30 analysts who raised price targets after Alphabet reported strong results on Monday was $920, suggesting that the company formerly known as Google could be valued at $625 billion in the next 12 months,” Ghosh and Mukherjee report. “Apple, tracked by 49 analysts, would be valued at $748.5 billion, at the current median price target of $135.”

“That’s not all,” Ghosh and Mukherjee report. “A look at the most bullish price targets on the companies’ shares shows that Alphabet is expected to be valued at $734 billion in the next 12 months, while Apple could hit $1.10 trillion – the first publicly listed company ever to be worth more than $1 trillion.”

“Apple – whose shares have fallen about 18 percent in the past year – has an upcoming catalyst in the form of the iPhone 7 launch in September. That could spur sudden growth,” Ghosh and Mukherjee report. “Apple shares trade at 10.59 times forward 12-month earnings versus Alphabet’s 22.47, among the most expensive in the tech sector.”

Read more in the full article here.

MacDailyNews Take: Not only will Apple’s iPhone soon likely reap 100 percent of world’s smartphone profits, but Apple’s revenue is over 3 times Alphabet Inc.’s revenue.

Apple vs. Alphabet revenue (2008-2015) (in billion U.S. dollars)
Revenue comparison of Apple and Google from 2008 to 2015 (in billion U.S. dollars)

Apple vs. Alphabet net income (2008-2015)

Apple vs. Alphabet net income (2008-2015)
Source: Wolfram Alpha

SEE ALSO:
Apple’s iPhone can soon reap 100 percent of world’s smartphone profits – November 17, 2015
Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015

50 Comments

    1. Well, kind of sort of. The Nexus phones are considered to be Google’s own. This is why the Nexus is the ‘king’ of the Android phones in that they immediately receive Android updates, as opposed to the rest of the fragmandroid clunk-iverse.

        1. Damned interesting idea. But now you’ve foolishly loosed it up on the world! What shall be our pain if this should come to pass?! Interesting times would be our fate. – – I enjoy it when you break the box and challenge our minds.

    2. Manufacturer’s won’t be able to continue making Android phones if they continually lose money. Once they start to abandon the market, Android sales will have nowhere to go but down.

      1. Whatever ill fortune comes to those companies who play the razor thin margin game, there always seems another company willing to sell even cheaper in order to sell the most and become the market leader. I don’t know what they do it, but it always seems to happen.

    3. Remember the “other bets” Google talks about, that everyone thinks have so much “potential?

      …operating losses were very significant in the Other Bets segment. The segment lost $1.2 billion in Q4 2015 alone, and three times that much in 2015 as a whole. For context, sometime in 2005 or 2006, that was about as much operating income as the whole of Google was throwing off over a comparable period. It’s about 15% the scale of the core Google segment’s operating profit today, but negative. And it appears to be growing fairly rapidly, since this loss almost doubled year on year while revenues only grew by 37%.

      http://www.beyonddevic.es

    4. Google gets kudos for Android.

      Ps. Apple could get 100% of world smartphone profits and Wall Street would clamor for Apple to drop prices to sell more phones. Cause……… Well just cause!!! Lol

  1. Time to go Thermonuclear on Google.
    No more default search engine on Apple product.
    Apple buys DDG and commit to web once and for all (for a while).
    File more lawsuits on Android stolen platform…

    Other then that, useless news…

      1. Apple should totally shut out Google from all iOS devices. Apple doesn’t need to worry about the income from google, but google has to worry about revenue from Apple devices. Google cannot claim Apple iPhones are in a monopoly position.

          1. Point is Apple doesn’t need Google. That is the point.

            What you say only shows you don’t know about the revenus streams Apple has acquired over time…

            Didn’t mention anything about Google being evil…
            My guess is you like to demonised entities…

            1. Well, you started this… With a weak reply.

              It does confirm that your first comment was way off.

              I think it is time for your medication Mr unstable computer user.

  2. It has been extremely gratifying, over the past four years, to see AAPL the most valuable company in the world, no doubt. Losing the crown to GOOG certainly doesn’t feel great.

    However, on the other hand, for those who have followed Apple, as users and fans, the position of the top dog was never really that comfortable. For the most of its existence, Apple has operated as an underdog, a maverick, a visionary company, driving innovation, pushing others out of the way. It was difficult to reconcile such spirit with the position above the likes of Exxon-Mobil, Berkshire-Hathaway, Petro China, Johnson & Johnson, Novartis, GE… These are all old-fashioned business monoliths, the personification of old, rigid, unimaginative. To have Apple significantly larger than all of them felt quite odd, and it still does. I’m sure it does for Wall Street as well. To see Google in such company doesn’t feel that odd; after all, they fit quit well with that group (unimaginative, rigid).

    Perhaps losing the crown may bring Apple some of the old spirit of the underdog…

    1. Here’s how Gaagle does with their ancillary businesses. From the AP: “Meanwhile, Alphabet’s other companies together produced an operating loss of $1.2 billion on revenue of just $151 million. Alphabet labels that category “other bets.” For the full year, Alphabet’s other companies lost $3.6 billion on revenue of $448 million.”

  3. I’m finding this ‘Google will be MORE valuable than Apple’ stuff highly amusing. It’s bizarre how this conclusion is being invented. But have fun with it GOOG fans, while it lasts. I warn, as usual, that GOOG is a bubble stock. Bubbles eventually break. You have been warned.

      1. Have you heard of the term ‘Fandroid’? Do you remember the small but vocal group of Mac fans from the 90s? The most devoted of them were extremely defensive and passionate. That was nothing compared to the zeal with which Fandroids defend their platform, and vitriol with which they soak their defensive arguments, in general exclusively against Apple and the iOS.

        1. I’ve only heard it on Apple sites. Just because people use Google, does not imply loyalty. Nowhere Apple fan levels anyway.
          I do think Apple fans do overstate the significance of every-little-thing, and many even think Apple invented everything (FaceTime?)

          I can’t speak for everyone, just myself. I ‘m not a Google fan, I use Android because they’re not Apple, though recently I did buy an iPad Pro.

          1. You haven’t seen discussion on Android sites. Even worse, the neutral news sites reporting tech news (Wired, Verge, ZDNet, etc) always attract plenty of comments on articles (much like this one here). When an article touches on Android or iOS, or in any way compares one against the other, the comments from the rabid Android fan base get absurdly heated and vitriolic. Apple fan base looks positively bland and tame compared to them. The original Windows vs. Mac wars are nothing compared to this, and Android legions far exceed anything seen before in their zeal.

      2. I’ve heard some Google fans speak and I can’t exactly fault them for at least some of the things they champion. Google has great positive potential and has done some fun things. We’ll be hearing more about the Google Cardboard project this coming year, as they sort out their software bugs.

  4. Apple is essentially withdrawing from ads and has enabled iOS users to withdraw from ads in general, including Google’s. What’s fun is that this can be considered both a withdrawal from competing with Google in terms of ads as well as severe competition regarding smartphone derived revenue.

    1. “Wall street would love a good moonshot acquisition!

      Nothing drives up share price faster than a big bloated money losing moonshot!”.
      Yes, absolutely but only works for Google though. Doesn’t matter what Google do, even Google lost $20B. WS would forgive Google and GOOG/GOOGL shoot upward.

    1. That’s a classic saying… but you have to consider that ad revenue is a much more stable, sticky, source of income than needing to sell physical products. Your customers are businesses. Those businesses are all kinds of diversity. People who say “Google” is not diversified because they only sell ads might as well say “Heinz is not diversified because all they sell is food”

        1. But any disruption would happen slowly. Search is diversified over mobile, desktop, and tablet, over multiple browsers on multiple platforms. With Apple, they have to be super careful with their golden goose. One bad product, one risky product update, or a disruptive product from another company would completely tank their profits. Wall street rightly sees AAPL as a risky stock, so they price it low. Until AAPL can diversify more ( Cars, services ) and have at least two pillars from which profits come from, they will always have a crazy P/E.

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