Alphabet the parent company of Google was all set to become the most valuable company worldwide, knocking Apple off of the top spot. The indications on Monday were that Alphabet would total about $570 billion, with Apple pulling in just $535 billion.
In February 2010, Google was more valuable than Apple and at this time both were worth under $200 billion. At this time, Apple headed up by Steve Jobs had not released the new iPad and the newest iPhone available was the 3GS with the Mac accounting for a third of their revenue and being the biggest product line. Google at this time was under the guidance of Eric Schmidt, who handed the reins back to Larry Page in the next year and the company was about half of the size it is today.
During 2008 – early 2010 Google and Apple vied for the top spot until September 2012 when Apple saw a huge leap in revenue pushing the value from $180 billion to $650 billion, at this time the two companies were separated by an excess of $400 billion and it was in 2011 that Apple toppled Exxon to be the most valuable company in the world. It is surprising to think that Google was actually the more valuable; this was until of course the beginning of the iPhone madness.
Results show that Google’s rise against Apple began in July and by the end of last year Google’s shares had gained by over 40% whereas Apple saw a decline of over 15%.
The main problem that Apple has is its reliance on the iPhone which currently is two thirds of the company’s revenue and whilst it is an enormous business sales in the first quarter showed an increase of just 1% from the same time a year earlier and there were also revenue drops for both the Mac and the iPad. Investors are also concerned that if Apple doesn’t change their current direction and starts to compete against the lower cost Android manufacturers prices, the iPhones day really has past.
Google on the other hand is persuading their investors it can still maintain dominance even through its evolution from Web to mobile. Google is expected to secure 32% of the mobile advert market which will keep them well ahead of Facebook which is currently about 20%. Google generates huge profits from the digital advert business that it is able to invest in all manner of potential areas for growth.