Google makes all their money from search. All of their others projects have been huge failures! The big money outside of hardware is in services. This is an area that has been quietly growing in a big way for Apple and far outstrips Google here.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Google Again Surpasses Apple as Most Valuable Company in the World
- Thread starter MacRumors
- Start date
- Sort by reaction score
Thing is, you have a choice to use google, Bing, yahoo, whatever you want. You did not have to download a FREE U2 album either (not sure why you think giving away an album to advertise that album was their goal). Apple does not have a business that sells customer information.
Also, Apple sells a lot of hardware to google. Swing by and check out all the MacBooks!
We could argue F, CPX. Many users of the older program were not happy about the hybridization to prosumer. Seemed to have gotten castrated in that change over. What I got from readings back in 2011 before I bought FCP.
We could also argue an app left unattended tends to put off users who can go elsewhere. Especially if the vendor is silent. Where is your proof of the uber FCP to be? I know of several leaks and patents of stuff that could be on an ipad, computer or phone. Nothing about FCP do I see.
I'd see your point but at 2-3 years running now (last time a saw a patch that impressed me) your faith in apple is bordering on too hopeful. We aperture users said the same thing about the lack of movement with that application. Man, apple is going to wow us one year.
And wow us they did...killed the application and with a straight face right after said but we beefed up the pic app in Mac OS. Insult to injury there.
If apple goes services based...they'd have to change this aspect to them. When several vendors can tell me where they are now, where they will be 6 months from now and there is apple saying wait till WWDC every year....not the best foundation to sell this stuff. If a high dollar support contract in place....when I call to ask about something I prefer to be told something besides wait for a 1 year conference. See it makes my life easy. As my CIO doesn't like answers like wait till July Sir. Makes him unhappy. And he being one of the most fair bosses I have worked for, I like keeping him happy.
Out of curiosity, can you explain how the stock value affects a company and it's assets because honestly, the way I look at it is that if you have over $200 billion in cash or cash equivalents, who cares what stockholders think, you have money to do whatever you want. Even before they were super rich, Jobs never cared much about the stockholders and just simply did what he thought was best for Apple. Let's say that Apple shares fall to $10, how does that affect the $200 billion+ they have to invest in themselves and in R&D, or even truly affect their future...
Wow, people really don't get it. The only reason Google is more valuable than Apple right now is that people believe Google will grow three times faster than Apple.
Apple's P/E Ratio is currently around 10, while Google's P/E is around 29. If Google was selling at the same P/E as Apple, it would be selling for around $245/share (instead of $713.31) and it's "value" (market capitalization) would be around $168.2 billion - about the amount of cash and marketable securities Apple has on hand right now (after subtracting debt). If Apple was selling at Google's P/E, it'd be trading at around $261/share (instead of $90.34).
It's all investor sentiment - optimism/pessimism about a future that has yet to happen. It has nothing to do with the current financial position of either company.
Google's 2015 Net Profit Margin 21.8% Apple's 22.85% (both quite healthy)
Google's 2015 Net Profit $16.348 billion Apple's $53,394 billion (no contest - Apple's a much bigger company)
So, the market assumes Apple's falling off a cliff tomorrow, and Google's on a rocket to Mars. Big deal. Call me when either scenario comes true.
Apple's P/E Ratio is currently around 10, while Google's P/E is around 29. If Google was selling at the same P/E as Apple, it would be selling for around $245/share (instead of $713.31) and it's "value" (market capitalization) would be around $168.2 billion - about the amount of cash and marketable securities Apple has on hand right now (after subtracting debt). If Apple was selling at Google's P/E, it'd be trading at around $261/share (instead of $90.34).
It's all investor sentiment - optimism/pessimism about a future that has yet to happen. It has nothing to do with the current financial position of either company.
Google's 2015 Net Profit Margin 21.8% Apple's 22.85% (both quite healthy)
Google's 2015 Net Profit $16.348 billion Apple's $53,394 billion (no contest - Apple's a much bigger company)
So, the market assumes Apple's falling off a cliff tomorrow, and Google's on a rocket to Mars. Big deal. Call me when either scenario comes true.
Apple make more on each Android phone sold than Google makes on each Android sold.
Attachments
While I agree with you 100%...
The problem with your post is it's:
True
Factual
And it contains a dangerous level of common sense.
The $200B you talk of belongs to the "stockholders"" and I promise you if the stock reduced to $10 it would have indicated that the stosckmarket had had no faith in the future prospects of the company and much of that $200B would have been returned to the stockholders on the journey down to $10 to continue driving dividends or in continued efforts to prop up the share price.
If people really knew how much data mining it (Google) does on users…that's where they make their revenue from.
All I saw was a whole lotta cherry picking things to fit a certain anti Apple narrative.
Yeah, that's all true. Wall Street values companies based on what they expect them to do in the future, not what they're doing today so what you're saying makes sense for the most part. What you're leaving out, however, are the oddball situations where Wall Street values companies inordinately high compared to their profit. The best example to cite is Amazon, but there are others.
And just because Apple missed their projections and their sales fell for one quarter does not make the responses on Wall Street suddenly look logical. There has always been a bit of a disconnect there. For example, Apple's stock value often tumbles even after Apple reports good sales. I wouldn't defend the thinking there too vigorously. It often doesn't make much sense.
I think your response missed the point. The stock market value of Apple has no direct connection to the company's wealth (aside from whatever Apple stock that Apple owns). Stock price is largely set by speculation. Whether the stock price went to 0 or 1000, Apple's bankroll would remain the same (aside from whatever Apple stock that Apple owns).
It should be obvious that speculators don't see explosive growth in the near future. This seems likely as the markets Apple serves have largely matured and settled. There is only so much you can do with current technological limitations (i.e. display tech, battery capacity).
I don't think it missed the point at all. A are lot commenting on here about how having $200B in the bank was some sort of comfort blanket that same market value is irrelevant to on going performance. As the original poster tried to claim that even if the stock was at $10 everything would be just fine and they could could continue to burn their $200B. My point was, it was not a) theirs to burn and b) if the stock was at $10 clearly current performance and future prospects would have become very dire indeed.
You're right, it is all about speculation, but the current stock price is not driven by speculation, because their is no need, since the company itself has just recorded a drop in performance and also forecasted another quarter of lower performance. (versus the corresponding quarter last year).
Although it's used for intelligent correlation for Google Now predictive notification it can never be as bad as Apple's insecurity by leaking private pictures of people's orifices for everyone to see on the internet.
Ironically, in UK is only iPhones/Apple watches that do offer NFC payments.
And seriously, you call large screens innovation?
I second that. Apple could have made NFC such a useful tool - similar to the Bump app used to do back in the day, I think, but instead enable the whole AirDrop process just by bumping two NFC capable iPhones and sending photos, etc. just by doing that, not the whole cumbersome Control Center discovery mess and that's just one scenario I can think of.
People don't want new iPhones, Watches, streaming music service, etc. they want new portable computers with more storage (& less bugs & refined built in programs ...) - they would easily sell for billions and billions new models of MacBook Air if they just bothered to get something produced ... of course they are a bit dependent upon other producers to deliver new faster processors, faster thunderbolt, etc ... but people do not want to wait until they die ...