Quick. Answer this question about politics. “What does every first term president of the good old U.S. of A. want?”
World peace? Nope. Better trade agreements? Probably not because all the most recent multi-term presidents didn’t achieve that; according to the most recent president. High approval ratings? Love of the people?
Well, what is it? What does every first term president really want?
A second term.
Duh. It’s math.
Also math is what every successful technology company wants. A growing stock price. Growing revenue. Growing profits. How is that accomplished?
That’s exactly how one must separate Apple and Google. Both have riches. Both have valuable brands. But only one is diversified.
Wait. What? Isn’t Apple merely the iPhone company? And doesn’t Google have a long and growing string of new technology businesses exiting from X – The Moonshot Factory?
Uh, well, yes. And, um, well, no.
Yes, Apple sells iPhones and it is the company’s most valuable and prosperous product. And, no, Google does not have a string of successful new businesses from X.
Ipso facto and alakazam– Apple is diversified and Google is not.
Everything Apple touches makes money. Everything Google touches– beyond advertising– dies, rots, does not make money. Just the other day I was reading a book by Republican strategist Rick Wilson regarding the absurdity of American politics and the similarities– in absurdity– struck me regarding how technology companies are perceived.
Apple is perceived among many in the technorati elite politburo as a company intent upon self destruction, a living meme of gloom and doom, a one-trick pony whose pony will never become an adult horse. Money cannot be trusted. Only journalists can be trusted.
Yet, if you were to take the few minutes to read the financial statements from GOOG and AAPL and compare them, you would come away with a different view. Apple is rich and diversified, while Google is far less rich and not very well diversified.
I know, right? Truth hurts. Well, sometimes. Most of the time truth is just ignored, and that’s the way politics is these days, and that’s the way Google and Apple are compared. One is rich and progressive and the other is nearly ready to go under.
Google is an advertising company. That’s where the revenue and profits come from. Where it goes, so far, has been much of a waste. Acquisitions totaling tens of billions of dollars have been wasted. Google remains an advertising company. What about YouTube? Advertising. What about Android? Advertising. What about Chromebooks and Pixel smartphones?
Google does not release such sales numbers because the actual numbers would pale in comparison to everything Apple sells, so to save itself public shame and embarrassment, Google stays quiet.
Apple is a technology gadget maker. It makes and sells hardware. And various and sundry services that work on the aforementioned hardware. Mac, iPhone, iPad, Watch, Apple TV, Beats headphones, AirPods, a bunch of associated accessories. All hardware. All well connected by proprietary software.
And every damned inch of those products makes money hand over fist. Google can’t say that. Facebook can’t say that. Amazon can’t even say that about Amazon-branded technology.
Samsung can say it. Samsung is diversified, perhaps even more than Apple, so why is that the Korean refrigerator and TV maker wants to be so much like Apple? Apple is loved. Samsung? Not so much.
That might explain why Samsung does not want to be like Google.