... Google is now getting into selling hardware at cost because they know they will make money on advertising. That is why the Nexus phones and tablets, and Chromebooks are cheap. ...
Google's Chromebook Pixel is hardly cheap, especially for a laptop that only runs a web browser.
Didn't Google have a year over year loss recently? This comes despite huge Android growth, because the PC is in huge decline and ad revenues are much larger in that market.
"There's only one company, benefitting from all the growth areas of the Internet ? be it video, mobile, local, social, display advertising," one analyst said. "Apple has just done well in devices, nothing else."
There's only one thing Google makes money on: ads. 96% of Google's revenue comes from ads.
Tim Kook (the new Stuart Smally and interim CEO od AAPL) claims that whenever he is feeling down or having a bad day that he just goes to an AAPL store to view all the consumption and/or purchases of AAPL product(s). His analogy compares this activity to the experience of a manic depressive's reliance on prozac for happiness and clarity.
Well, I am in an AAPL store right now to get my $2k MacBook Pro fixed and there are plenty of other people at the genius bar as well. However, out in the floor where the "new" products are, there isn't a sole.
Facts are facts...AAPL is now getting their lunch eaten by Samsung & GOOG, as well as Wall St. Perhaps Mr. KooooK grabbed the wring pill bottle from his medicine chest and took too much ambien instead of his beloved prozac.
Thatz what the stock price is saying, as if AAPL's customers are enjoying their Ambien right now as well.
$150 billion projected by the end of March. They need to eventually DO something with that money. How much cash hoard is enough? A quarter trillion? A half trillion?
"There's only one company, benefitting from all the growth areas of the Internet ? be it video, mobile, local, social, display advertising," one analyst said. "Apple has just done well in devices, nothing else."
Yes! That's right, Apple has done well in just ONE (group of) THING(s), which is:
Portable music player market
Online music market
Mobile market
Mobile app market
Tablet market
PC market
Retail
Clearly, Apple is a one trick pony. On the other hand Google has excelled at many, many things, too many to list here but most notably:
...once Apple sells a device, Apple makes its profit and nothing more...
I agreed with some of what you wrote, but that part isn't quite right...
When Apple sells a device they make a HIGH margin on the hardware, and then... they continue to reap considerable profits from additional software and content sales over time. Over $12 billion net profit from iTunes alone?
Saying that Apple exclusively sells hardware and that's where the buck stops, is simply not correct. They earn a substantial portion of their net revenue from software, iTunes and App stores, content sales, etc...
In fact, all of those sales are driven by the hardware sales, as a kind of 'halo effect'… the primary difference from Google and others being, Apple makes great margins on the hardware front end, as well as great gross margins (30%) on the third-party software/content sales...
AAPL is now getting their lunch eaten by Samsung & GOOG, as well as Wall St. Perhaps Mr. KooooK grabbed the wring pill bottle from his medicine chest and took too much ambien instead of his beloved prozac.
... why bring it up as you haven't provided examples of any?
Furthermore, once Apple sells a device, Apple makes its profit and nothing more. But Google keeps getting money from that device as long as it keeps getting used, via search (advertising) and Apps like Google Maps, Youtube, and so on. As the installed base of mobile and desktop devices keeps growing, Google's revenues will keep growing. This is the business model Wall Street loves.
What are you smokin!! Apple works night and day to suck you into their "private ecosystem" monopoly, that they have conveniently "taxed", so that they can make money on every app, song, video you purchase. Device profits are just the initial fleece.
This is sad that Wall Street is driving the true hw makers out of this country. Ad model wins. As a hardware engineer, it is said to see this trend....
I think you have a point, but the real problem is a different one ... globalization of the supply chain and manufacturing. Nokia was a good example of how NOT to survive. They set up a factory in Germany, collected all kinds of subsidies for creating jobs, closed the factory and built a new on with roughly the same number of jobs in Rumania .... collected the subsidies, closed the factory and moved on.
So while "Wall Street" is indeed driving HW manufacturers out of "your" country, its part of a global issue. ... and the US is the cause of it because of their obsession with quarterly result reporting to the SEC. Been that way for a long while now.
So learn chinese :-). There is probably no future in the US for HW manufacturers. For engineers it may be better if the US keeps ahead of the curve, but I seriously doubt that that will happen given the politics and economics of the US. Just look at the number of engineering graduates that China is producing, or just about any metric you chose that is relevant to getting and holding technological leadership. The US is dead in the water.
Didn't Google have a year over year loss recently? This comes despite huge Android growth, because the PC is in huge decline and ad revenues are much larger in that market.
Apple should open a business which has so little profit but big market share and most importantly it is FREE . The profit is so little like 1 million but its growth is about 50% a year . ( earning 100 years = less than 1 billion ) The analysts will take care of the rest by dreaming its profit is unlimited , then AAPL will fly . Earning big is not what the market wants , DREAMING the profit is big is what the market wants .
Comments
Quote:
Originally Posted by AppleGreen
... Google is now getting into selling hardware at cost because they know they will make money on advertising. That is why the Nexus phones and tablets, and Chromebooks are cheap. ...
Google's Chromebook Pixel is hardly cheap, especially for a laptop that only runs a web browser.
Summary: the logic in the article is bullshit
Originally Posted by AppleInsider
"There's only one company, benefitting from all the growth areas of the Internet ? be it video, mobile, local, social, display advertising," one analyst said. "Apple has just done well in devices, nothing else."
There's only one thing Google makes money on: ads. 96% of Google's revenue comes from ads.
http://venturebeat.com/2012/01/29/google-advertising/
http://www.washingtonpost.com/business/economy/is-google-profiting-from-illegal-ads/2011/05/18/AFXsQD7G_story.html
Wall Street thinks they understand the ad business. Wall Street knows they don't understand tech. (Just ask Facebook.)
That's one reason why Amazon's valuation is so high. They're not a tech company. They're a retailer.
Quote:
Originally Posted by Crosslad
Applegreen. The answer is simple -change your browser. If all Apple users switched from Google their shares would soon fall
That's as unlikely as saying "It's simple- Don't buy an iPhone. If all smartphone users switched away then Apple would soon fail"
Well, I am in an AAPL store right now to get my $2k MacBook Pro fixed and there are plenty of other people at the genius bar as well. However, out in the floor where the "new" products are, there isn't a sole.
Facts are facts...AAPL is now getting their lunch eaten by Samsung & GOOG, as well as Wall St. Perhaps Mr. KooooK grabbed the wring pill bottle from his medicine chest and took too much ambien instead of his beloved prozac.
Thatz what the stock price is saying, as if AAPL's customers are enjoying their Ambien right now as well.
Quote:
Originally Posted by tundraboy
Then Google's creepy stalker spectacles (a.k.a. Google Glass) will bomb big time and investors will panic about Google too.
Or they will be a total hit and the stock, like Apple's during their current prime, will also tank…..
"...using some of its $137 billion cash pile."
$150 billion projected by the end of March. They need to eventually DO something with that money. How much cash hoard is enough? A quarter trillion? A half trillion?
Quote:
Originally Posted by AppleInsider
"There's only one company, benefitting from all the growth areas of the Internet ? be it video, mobile, local, social, display advertising," one analyst said. "Apple has just done well in devices, nothing else."
Yes! That's right, Apple has done well in just ONE (group of) THING(s), which is:
Portable music player market
Online music market
Mobile market
Mobile app market
Tablet market
PC market
Retail
Clearly, Apple is a one trick pony. On the other hand Google has excelled at many, many things, too many to list here but most notably:
Advertising
More advertising
Extra advertising
Advertising galore
Advertising some more
...and many, many others
Oh, and did I mention advertising?
Quote:
Originally Posted by AppleGreen
...once Apple sells a device, Apple makes its profit and nothing more...
I agreed with some of what you wrote, but that part isn't quite right...
When Apple sells a device they make a HIGH margin on the hardware, and then... they continue to reap considerable profits from additional software and content sales over time. Over $12 billion net profit from iTunes alone?
Saying that Apple exclusively sells hardware and that's where the buck stops, is simply not correct. They earn a substantial portion of their net revenue from software, iTunes and App stores, content sales, etc...
In fact, all of those sales are driven by the hardware sales, as a kind of 'halo effect'… the primary difference from Google and others being, Apple makes great margins on the hardware front end, as well as great gross margins (30%) on the third-party software/content sales...
Quote:
Originally Posted by TJRSV
Facts are facts...
That is most certainly true, but...
Quote:
AAPL is now getting their lunch eaten by Samsung & GOOG, as well as Wall St. Perhaps Mr. KooooK grabbed the wring pill bottle from his medicine chest and took too much ambien instead of his beloved prozac.
... why bring it up as you haven't provided examples of any?
Quote:
Originally Posted by AppleGreen
Furthermore, once Apple sells a device, Apple makes its profit and nothing more. But Google keeps getting money from that device as long as it keeps getting used, via search (advertising) and Apps like Google Maps, Youtube, and so on. As the installed base of mobile and desktop devices keeps growing, Google's revenues will keep growing. This is the business model Wall Street loves.
What are you smokin!! Apple works night and day to suck you into their "private ecosystem" monopoly, that they have conveniently "taxed", so that they can make money on every app, song, video you purchase. Device profits are just the initial fleece.
Quote:
Originally Posted by yuanshec
This is sad that Wall Street is driving the true hw makers out of this country. Ad model wins. As a hardware engineer, it is said to see this trend....
I think you have a point, but the real problem is a different one ... globalization of the supply chain and manufacturing. Nokia was a good example of how NOT to survive. They set up a factory in Germany, collected all kinds of subsidies for creating jobs, closed the factory and built a new on with roughly the same number of jobs in Rumania .... collected the subsidies, closed the factory and moved on.
So while "Wall Street" is indeed driving HW manufacturers out of "your" country, its part of a global issue. ... and the US is the cause of it because of their obsession with quarterly result reporting to the SEC. Been that way for a long while now.
So learn chinese :-). There is probably no future in the US for HW manufacturers. For engineers it may be better if the US keeps ahead of the curve, but I seriously doubt that that will happen given the politics and economics of the US. Just look at the number of engineering graduates that China is producing, or just about any metric you chose that is relevant to getting and holding technological leadership. The US is dead in the water.
Umm no, GOOG has never posted a loss.