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Valleywag magazine, iphone Apple, Google Android

Why Google will be bigger than Apple



The tech industry has never been a wholly stable industry. One need look back no further than the buest of the .com bubble only a few years back for proof. So there are always fluctuations, and inconsistencies. Microsoft is huge, but hated. Yahoo have just been dubbed "moral pygmies" by the US House Foreign Affairs Committee chairman, Tom Lantos.

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But there are some consistencies in the tech industry that some people fail to view with much interest. So much of the world is focused on sheer monetary gain, and they miss other crucial aspects. And let's not be na�ve either. Money really is everything, especially in the tech industry. But the important thing to remember is that there are many ways to make money. Tech gossip-rag Valleywag has just run a story entitled "Why Apple will be bigger than Google." No surprises as to where this story got its title, because this author is entirely opposed to what Valleywag is selling. Without rehashing the entire article at Valleywag, let's just take a moment to look at a few of their points. They spend a lot of time focusing on the groundbreaking deal that Steve Jobs managed to make with AT&T. Focusing on the fact they get cash from hardware sales, from the subscription, and from their iTunes Store sales. Great, yes, but not everything. They describe Monday's Google announcement as a "nonrelease", and call the industry initiative backed by Google "laughable". Valleywag seem to have been bitten by the Steve Jobs bug, also known as the 'distortion field'. Apple can do no wrong, in their eyes. Let's not attack Valleywag though, let's just quietly reflect on the fact that, despite everything, the iPhone is not actually Christ reincarnate. As flashy and big of an introduction as it received, Christ's return will probably involve some cloud cover opening and heavenly angels (not the # Dolls mind you). Let us make the point straight off the bat; Google knows their customers. They know them better than Apple do in fact, and I believe that there is no chance that "Apple is worth more than Google within two years." Because Google's customer is everyone, and what they are selling is advertising. It has nothing to do with a flashy phone--though there is no doubt they'll manage that. And let's be realistic, the iPhone has been locked down to hell and back, is running on a less than adequate network, and has intermittent at best WiFi access. Sure, they've locked their customers in to having to use iTunes--and thus opening up a new stream of revenue. But they've also locked themselves in to a rumored 5 year contract to sell only with AT&T. Google, on the other hand, has begun strongly, with numerous backers, from networks, cell phone makers and chip makers. Valleywag's view of the Google release is, in itself, laughable. They believe that--because Nokia and Microsoft are not involved in this--it is doomed to failure. When, in reality, Nokia have today announced that they are indeed open to the possibility of a joint venture with the new Google platform, Android. As for Microsoft? I laugh at their theory that one must have Microsoft on board for a mobile device. Consider the bane of many executives and businesses; Microsoft Windows Mobile. It works as much as it fails, and has suffered as much bad press as the consecutive failed launches of Windows XP and Vista. Valleywag's authors all seem to have been bitten by the Apple bug. So much so, that they seem to view the rest of the world in such limited terms. I haven't played with an Apple iPhone, but I would like too. But even I--an Apple fanboy--can see the flaws in the iPhone. Let's not even discuss the locked down flawed network that Apple has latched itself on to. Consider the fact that the biggest iPhone news was not the launch, but the hacking of the iPhone. Then the launch might come in second, closely followed in third place by the ability to run third party apps; another hack! The rant is coming to a close. But let's just conclude with why Google will be bigger than Apple. First of all, from a strictly financial standpoint, Google will always have more money than Apple. They are not banking on the success of a single product, but can--as has already been seen--suffer the loss of a product and keep on going. They don't get bogged down by a failure. Their business is advertising. They sell advertising like Homer sold his Tomacco, and they do it well. It's everywhere too! They began with search related ads, then website related ads, and it just keeps growing. So when you've got a cell phone in your pocket that has area-specific advertising, are you trying to tell me that their cash flow won't increase? But, stepping away from a strictly financial point of view, Google aren't sufferers of fanboy-ism. They are known to the world over, for good products. Apple is known to the world over for one product. Google aren't the big multi-billion dollar industry giant (though they are) that is out there to squash the little guy. They take the little guy, and make him big, just like they've done with Android, which started out as a small start-up. That is why Google will always be bigger than Apple; not to mention Microsoft, Nokia, Palm, Yahoo, etc... Joshua Hill, a Geek’s-Geek from Melbourne, Australia, Josh is an aspiring author with dreams of publishing his epic fantasy, currently in the works, sometime in the next 5 years. A techie, nerd, sci-fi nut and bookworm.


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Guest Column Joshua Hill -- Bio and Archives

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