Nearly two decades, a technology war was brewing that would not be defined for many years and completely reshaped the landscape of the computing world. Apple and Microsoft started on equal footing but Microsoft focused on making inexpensive hardware along with their DOS system that the everyday person could afford whereas Apple went with the superior hardware that simply cost too much.
As computers became more and more cost effective across the board and Windows became the target of viruses and the “blue screen of death” that Macs began to gain a foothold. When mobile devices came on the scene, Apple knew they had the operating system, capability, and brand to lead the market.
A Bit of History
It would seem that all is lost and Apple is going to take over the entire tech world, but a new contender and rivalry is brewing that could eclipse anything that Microsoft ever had. Before we get into that, lets look at what is going on now. At one point, Apple had over $100 billion in cash reserves, owned the smart phone market, and is selling millions of applications in their store. They seemed unstoppable.
Google on the other hand has had a different kind of birth. They came from the world of the Internet, obtaining vast funding nearly solely through advertisements, and expanding into the world of social networks, YouTube, and blogging, they have decided to get into the mobile operating system. At the heart of their business approach, they still want to stay at the heart of their business, gathering information, and mobile devices are but another device to get more information to optimize their searches.
The Cool Factor
For the last several years, Apple has had the cool factor in their favor as customers want to buy an iPad as much for the device as they do for the technology and so Apple has relished in significant market-ups. But all of that is changing as many people have been going less for Apple and more for Android devices. Currently Google’s Android has a 3:1 Android to iPhone sales ratio but Apple is making more than $5 million a day from their App Store.
Even worse, I made the comment that Apple seriously tripped up with their Apple iPad Mini. They wanted to give you the greatest in tablet technology, but honestly their hardware is no better than an iPad 2. Even worse, they offer a non-Retina display in its smaller size and yet costs as much as the iPad 2. Even worse is that many loyal Apple fanboys have begun to try out the Nexus series and have loved the experience as well as the $150 cheaper cost compared to the Apple tablets.
History Repeat Itself?
Apple made the mistake of charging a huge margin for their products against Microsoft and had to wait nearly 15 years before they could take control of the market and Google hopes to do the same thing again, but this time with a business model wrapped around search engines and advertising. Google’s money is in mobile web usage that crosses over any platform as they develop better and better mobile platforms and hardware (yes, they are beginning to look into making hardware!) whereas Apple requires people to not only buy the devices but the applications specifically on their devices.
It is obvious which one I see as the better long term investment, but what do you think? Are you currently thinking that Apple or Google will win the tech rivalry?
Eric J says
I think apple will continue to dominate in profits, and google will continue to win in market share. Also remember that the majority of android activation’s are outside the united states in developing nations where people are buying cheap phones and pirating apps.
Curtis says
The ipad mini is still very early in its product cycle. I wouldn’t judge Apples future on that one, recent product. Apple has long had a pricing model that vastly over-prices new products out of the gate, because they know they will sell gobs of them at huge profits to the massive Apple fan base. Then, after the product is out for a year or so, they drop prices down to compete with non-Apple products that enter the market. The same will be true with the iPad mini.
Who will win the tech rivalry? Hopefully consumers do, by having both Apple and Google strong and healthy for years to come. Microsoft only lost its mojo after they “won” and become the vastly dominant provider of PC software. If either Apple or Google wins the current consumer war, we will have another lost decade of stagnant innovation, like Microsoft gave us from about 1988 to 1998.