Poor old Apple. How does the company even stay in business, what with each of its business units raking in more revenue and profits than most Fortune 500 companies? Surely the end is near because Android. Or, because Microsoft. Or, because insert-your-daily-doomsday-prediction-here.
A funny thing happened on the way to the 21st century. Apple got rich. Apple has more than a billion customers. Yet, the doom that many predicted upon Apple since way back in the early 1980s has yet to come to pass. And almost doesn’t count (circa 1996).
If you look closely, you can see that Apple competitor Google actually has a longer list of problems that could darken, dampen, and stink up the company’s future. Smartly, and recognizing that the name Google is becoming a stain, executives changed the company name to Alphabet, of which Google is just the ‘g’ or something. Google is still there as the search engine and that’s a good thing because more than 90-percent of the company’s revenue and profits come the old fashioned way. They steal user data and sell it to the highest bidder.
Let’s keep Google synonymous with Alphabet for this comparison, but look closely at the stack of problems the company really has, not to mention the one-trick pony revenue stream of search engine advertising.
By some accounts, Android’s marketshare is four times that of Apple’s iPhone and iPad. Yet, it’s Apple’s App Store which has double the revenue and even more profits than Google’s Play Store. Double. On less than 25-percent of the marketshare.
Why isn’t that a problem for Google.
It gets worse.
Google is something of a monopolist with search and Android and monopolies tend to monopolize to the point of abuse and that’s what someone in The European Union figured out. Google is an abuser. Sure, Google denies it. Microsoft denied being an abuser back in the day but was convicted anyway, but mostly on the facts.
In the end Google will have to change some practices to allow for more competition, and probably pay someone a very stiff fine. But only in Europe.
Wait. There is yet more going on.
All those billions of Android smartphones in the wild? Most of them have security issues but will never get updated the way Apple updates iPhones and iPads to the latest versions because Android. Even Google says about 30-percent of Android devices will not be able to get the latest security patches. But that’s just those the company admits are eligible. The vast majority of Android devices are not even eligible for such security updates.
How many is that?
Let’s see, there are more than 60,000 unique Android models on the market, and 87-percent of Android devices are exposed to at least one critical security issue and will not get upgraded, so how about an even billion devices. Two billion? OK.
Now, a quick comparison. Apple’s revenue comes from a variety of hugely profitable business units. Mac, iPhone, iPad, Watch, Apple Stores, App Stores, iTunes, interest, accessories, and I’m tired of typing now.
Google’s revenue and profits are mostly– in the 90-percent-plus range– from search engine advertising, and a big chunk of that comes from mobile devices, but most of that comes from… insert drum roll here, please… Apple’s iPhone and iPad. Otherwise, Google doesn’t have much of anything else that generates substantial revenue, and almost nothing else that contribute anything substantial to the bottom line.
And you thought Apple had problems.