Apple is a successful technology company but Google is not. There. I said it. It’s fact.
It should be obvious, too. Apple is a successful technology company (defined as a company whose primary business, as measured by revenue streams and profit, is based upon the design, manufacture, distribution, and sales of technological gadgets or equipment) while Google, which uses technology to obtain revenue and profits, is nothing more than an advertising company, albeit highly profitable.
Let me put this another way.
Primarily, Apple designs, manufactures, distributes, and sells technology gadgets to make money. Primarily, Google uses technology to gather user information to sell to advertisers.
Wait. I know what you’re thinking. “Kate, Apple also sells advertising, and Google also makes smartphones and tablets.”
Both are true, but do not detract from the main thesis. Apple’s advertising business is there to assist app developers to publish apps for the iOS platform, while Google’s Nexus line of smartphones and tablets are merely hardware references to set the standard for Android device developers. Google doesn’t make money with Nexus.
Apple’s advertising business is less than nominal (though profitable), perhaps a rounding point on the quarterly financials, while Google’s hardware business is less than nominal (probably not profitable), and the company never discloses how many devices were sold.
That’s a telling sign of success. Every quarter Apple releases financial numbers which include revenue streams, profits, and product unit sales. Every quarter Google releases financial numbers which include revenue and profits. Unit sales are never mentioned.
Apple designs the entire product package– Mac and OS X, iPhone, iPad and iOS– top to bottom. Google merely uses technology to advance revenue and profits– from advertising.
What about Google’s research and development? Google R&D contains self-driving cars, Google Glass, internet balloons, contact lenses for diabetics, same-day drone delivery service, the artificial neural network device, and many others.
Those research projects make for great public relations and Google is touted as a leading technology company, but where are the actual products?
Over 90-percent of Google’s revenue and profits come to the company the old fashioned way. Advertising. The R&D technology is nothing more than a smoke screen to help prop up the stock price, which would drop to Yahoo! levels if investors knew that Google was merely an advertising company hiding behind a curtain of technology promise without fulfillment.