isn't it obvious that it is not google's intention to make money from android or the handsets but instead from their core search and ad supported services which integrate so seamlessly in the android experience. that is the whole point. and it is brilliant in my opinion. think about it, use google as the search provider on your android phone, sync your contacts, mail and calendar just by signing into your google account. maps w/navigation (free turn by turn). everything just works seamlessly and that is by design. a new android adopter will find themselves using many of the core google services and in turn be show advertisements which is their core competency.
It's not the price of the stock that's important. It's the price of the stock in relation to earnings. Google is trading at 20 times earnings. But in any case, I see your point. Google has always commanded a higher earnings multiple than Apple, something I can't understand at all. Amazon is trading at 104 times earnings. Out of the three, Apple has shown phenomenal growth. Yet, Amazon and Google command a much higher earnings multiple.
Google has carved out a niche for themselves. They own search, which will generate tons of cash flow for years to come. As an investor myself, I have my own concerns about Google. They have search and nothing else.
Google has 'search and nothing else'?? Please tell me you're shitting me.
Google has more products than almost any company I can think of. Yes, they're dominant in search, but have diversified into so many new things in the past few years. I thought about how many Google services I use the other day- and it was scary.
Google has more products than almost any company I can think of. Yes, they're dominant in search, but have diversified into so many new things in the past few years. I thought about how many Google services I use the other day- and it was scary.
He might have been referring to how Google makes money.
Search? Absolutely...
Google Earth, Picasa and Buzz? Not so much...
You're right... Google has a ton of products.
But how does Google make all of its money? Search and advertising.
Google uses Android the same way Apple uses iOS, to sell more of its real product, but that's where similarities between the two companies end. Their core businesses that bring the revenue are drastically different, ads vs. hardware, respectively. I don't see Google drinking up Apple's milkshake any time soon. The attempts to paint them as rivals are rather forced, imo.
"130 million Android devices Google had sold then, and the 190 million devices that Google just announced having sold through September"
So Google finally have stopped talking about activations, and about sold units?
How does Google know how many Android system are sold, since the Android OEMs does not tell Google that. Google can only track activations.
How do you know? There could easily be a clause in the OEM license agreement requiring the OEM to tell Google how many units were sold. In fact, the various license agreements may require that.
Quote:
Originally Posted by Apple v. Samsung
A website that is virtually funded by Google criticizing Google's Advertising stream. WTF. Get rid of the google adds.
I agree. If people would stop using Google, they'd lose a lot of power overnight. There are plenty of alternatives. I wonder about this, too. Back when I was using a lot of Google advertising, I very rarely had customers coming to me from that source. As web advertising has been growing at double digit rates for years, I wonder if it will eventually become saturated - and the value start to decline.
iOS generates money for Apple through the hardware.
Android generates money for Google through advertising revenue.
Google's advertising revenue is clearly stated in Google's report.
It's not rocket surgery, is it?
Google doesn't really break out its revenue from mobile advertising now and when it did the amount was minuscule compared to desktop revenue. If Android was making them oh-so-much cash in the mobile advertising space and was growing exponentially, I would think its executives would point that out since it would cause its stock price to surge and eliminate any fears over its proposed Motorola acquisition.
How this stock is priced at 550+ has always mystified me. They just must imagine this company can monetize money theoretically due to it's search business, but it's clear the jumps between both quarters is not impressive.
The share price is high because of that Google grows fast and makes a lot of money.
They have a P/E of about 17 witch is quite reasonable. (Amazon has about 100 witch is unreasonable)
The question is why Apple is valued so much lover then Google. (P/E 12). Apple have grown much faster (63% average last 5 years) and have 80 billion in cash.
Apple should have a P/E in the high 20is. (just 2 years Apple had a P/E of 22 = Apple was valued almost 100% more then today)
The problem for Apple is that it is to big. A fair value of Apple would put Apples value in the GNP of Canada.
Apples 80 billion could buy many countries in the world.
Maybe they should do that? Start an utopian society with only macs, no crime, all have Jobs, all are happy?
The share price is high because of that Google grows fast and makes a lot of money.
They have a P/E of about 17 witch is quite reasonable. (Amazon has about 100 witch is unreasonable)
The question is why Apple is valued so much lover then Google. (P/E 12). Apple have grown much faster (63% average last 5 years) and have 80 billion in cash.
Apple should have a P/E in the high 20is. (just 2 years Apple had a P/E of 22 = Apple was valued almost 100% more then today)
The problem for Apple is that it is to big. A fair value of Apple would put Apples value in the GNP of Canada.
Apples 80 billion could buy many countries in the world.
Maybe they should do that? Start an utopian society with only macs, no crime, all have Jobs, all are happy?
Google doesn't really break out its revenue from mobile advertising now and when it did the amount was minuscule compared to desktop revenue.
They don't? Yikes, I guess Larry Page spoke out of turn today and he said revenues in the last 12 months from mobile totaled $2.5B. Rookie CEO didn't get your memo.
More seriously, I recall Eric Schmidt recently mentioning the Google was generating from advertising revenue from iPhones/iPads than from Android devices. I think the ratio was 60/40 but can't remember precisely. Does anyone remember?
How this stock is priced at 550+ has always mystified me. They just must imagine this company can monetize money theoretically due to it's search business, but it's clear the jumps between both quarters is not impressive.
Yea 33% versus prior year really sucks ... very mystifying ....
If you do the numbers, their growth is accelerating versus '09 ... '09 to '10 was in the low 20% ... '10 to '11 is in the low 30%
lulz @ the typical google hate. Google's business model is genius because even if you are not directly using their product, they are still able to integrate and exploit off outside ideas. In the end, the consumer gets more choice and so does the developer. How tough is it to throw an ad in an app or on a web page? Pretty simple and not nearly as restrictive as the environment you'll find working in iOS.
On another note, apparently there were multiple reference to Android and upcoming Ice Cream Sandwich release. Perhaps Apple folks choose not acknowledge these key statements.
Quote:
Originally Posted by stelligent
No, it's not rocket surgery.
But ... I got to thinking - what the hell is rocket surgery? Then I looked it up and the answer from Urban Dictionary is
"A word dumbasses use ..."
Hmm ...
You use urban dictionary as a serious reference guide? "Rocket Surgery" is a play on 'rocket science' and 'brain surgery'... I thought even dumbasses got that joke.
Comments
It's not the price of the stock that's important. It's the price of the stock in relation to earnings. Google is trading at 20 times earnings. But in any case, I see your point. Google has always commanded a higher earnings multiple than Apple, something I can't understand at all. Amazon is trading at 104 times earnings. Out of the three, Apple has shown phenomenal growth. Yet, Amazon and Google command a much higher earnings multiple.
Google has carved out a niche for themselves. They own search, which will generate tons of cash flow for years to come. As an investor myself, I have my own concerns about Google. They have search and nothing else.
Google has 'search and nothing else'?? Please tell me you're shitting me.
http://en.wikipedia.org/wiki/List_of_Google_products
Google has more products than almost any company I can think of. Yes, they're dominant in search, but have diversified into so many new things in the past few years. I thought about how many Google services I use the other day- and it was scary.
Google has 'search and nothing else'?? Please tell me you're shitting me.
http://en.wikipedia.org/wiki/List_of_Google_products
Google has more products than almost any company I can think of. Yes, they're dominant in search, but have diversified into so many new things in the past few years. I thought about how many Google services I use the other day- and it was scary.
He might have been referring to how Google makes money.
Search? Absolutely...
Google Earth, Picasa and Buzz? Not so much...
You're right... Google has a ton of products.
But how does Google make all of its money? Search and advertising.
Android generates money for Google through advertising revenue.
Google's advertising revenue is clearly stated in Google's report.
It's not rocket surgery, is it?
"130 million Android devices Google had sold then, and the 190 million devices that Google just announced having sold through September"
So Google finally have stopped talking about activations, and about sold units?
How does Google know how many Android system are sold, since the Android OEMs does not tell Google that. Google can only track activations.
How do you know? There could easily be a clause in the OEM license agreement requiring the OEM to tell Google how many units were sold. In fact, the various license agreements may require that.
A website that is virtually funded by Google criticizing Google's Advertising stream. WTF. Get rid of the google adds.
I agree. If people would stop using Google, they'd lose a lot of power overnight. There are plenty of alternatives. I wonder about this, too. Back when I was using a lot of Google advertising, I very rarely had customers coming to me from that source. As web advertising has been growing at double digit rates for years, I wonder if it will eventually become saturated - and the value start to decline.
Anyways, Google makes money VIA ADS on Android....not the OS itself. Apple makes money selling hardware...
iOS generates money for Apple through the hardware.
Android generates money for Google through advertising revenue.
Google's advertising revenue is clearly stated in Google's report.
It's not rocket surgery, is it?
Google doesn't really break out its revenue from mobile advertising now and when it did the amount was minuscule compared to desktop revenue. If Android was making them oh-so-much cash in the mobile advertising space and was growing exponentially, I would think its executives would point that out since it would cause its stock price to surge and eliminate any fears over its proposed Motorola acquisition.
How this stock is priced at 550+ has always mystified me. They just must imagine this company can monetize money theoretically due to it's search business, but it's clear the jumps between both quarters is not impressive.
The share price is high because of that Google grows fast and makes a lot of money.
They have a P/E of about 17 witch is quite reasonable. (Amazon has about 100 witch is unreasonable)
The question is why Apple is valued so much lover then Google. (P/E 12). Apple have grown much faster (63% average last 5 years) and have 80 billion in cash.
Apple should have a P/E in the high 20is. (just 2 years Apple had a P/E of 22 = Apple was valued almost 100% more then today)
The problem for Apple is that it is to big. A fair value of Apple would put Apples value in the GNP of Canada.
Apples 80 billion could buy many countries in the world.
Maybe they should do that? Start an utopian society with only macs, no crime, all have Jobs, all are happy?
Thanks for reposting the whole article.
LOL! Indeed!
The share price is high because of that Google grows fast and makes a lot of money.
They have a P/E of about 17 witch is quite reasonable. (Amazon has about 100 witch is unreasonable)
The question is why Apple is valued so much lover then Google. (P/E 12). Apple have grown much faster (63% average last 5 years) and have 80 billion in cash.
Apple should have a P/E in the high 20is. (just 2 years Apple had a P/E of 22 = Apple was valued almost 100% more then today)
The problem for Apple is that it is to big. A fair value of Apple would put Apples value in the GNP of Canada.
Apples 80 billion could buy many countries in the world.
Maybe they should do that? Start an utopian society with only macs, no crime, all have Jobs, all are happy?
Dude, you need spell-check!
iOS generates money for Apple through the hardware.
Android generates money for Google through advertising revenue.
Google's advertising revenue is clearly stated in Google's report.
It's not rocket surgery, is it?
No, it's not rocket surgery.
But ... I got to thinking - what the hell is rocket surgery? Then I looked it up and the answer from Urban Dictionary is
"A word dumbasses use ..."
Hmm ...
Google doesn't really break out its revenue from mobile advertising now and when it did the amount was minuscule compared to desktop revenue.
They don't? Yikes, I guess Larry Page spoke out of turn today and he said revenues in the last 12 months from mobile totaled $2.5B. Rookie CEO didn't get your memo.
More seriously, I recall Eric Schmidt recently mentioning the Google was generating from advertising revenue from iPhones/iPads than from Android devices. I think the ratio was 60/40 but can't remember precisely. Does anyone remember?
How this stock is priced at 550+ has always mystified me. They just must imagine this company can monetize money theoretically due to it's search business, but it's clear the jumps between both quarters is not impressive.
Yea 33% versus prior year really sucks ... very mystifying ....
If you do the numbers, their growth is accelerating versus '09 ... '09 to '10 was in the low 20% ... '10 to '11 is in the low 30%
A website that is virtually funded by Google criticizing Google's Advertising stream. WTF. Get rid of the google adds.
We have "Reader" to fix that.
J.
On another note, apparently there were multiple reference to Android and upcoming Ice Cream Sandwich release. Perhaps Apple folks choose not acknowledge these key statements.
No, it's not rocket surgery.
But ... I got to thinking - what the hell is rocket surgery? Then I looked it up and the answer from Urban Dictionary is
"A word dumbasses use ..."
Hmm ...
You use urban dictionary as a serious reference guide? "Rocket Surgery" is a play on 'rocket science' and 'brain surgery'... I thought even dumbasses got that joke.
Dude, you need spell-check!
Dude, you need a tic-tac.