Both Google and Apple companies are well-known and, for sure, are desperately desired to be owned. Both of the companies are representing the technology products and are considered as main drivers of their field. However, if to choose one company to invest into, my preference would fall for Google.
For sure, Apple shows an impressive financial performance: as per a slow start in 2014 by the end of 2015 the company’s stock has gained 40%. Its cell phones and personal computer sales are constantly growing at a rapid paste. Moreover, it is seen as the World’s Most Admired Company by Fortune 500. However, despite the fact that everybody wants Apple, the IPad sales perform low. Another reason for worries is highly-overvalued expectations from both customers and investors. One small mistake, which could have been forgiven and forgotten in theory, can lead to a complete destruction of company’s image, thus, a dramatic drop in a stock price. While competitors keep producing much cheaper and diversified, more compatible with other devices products, Apple keeps being too expensive to be named as an affordable brand. Moreover, nobody can estimate how far the company can go without Steve Jobs pushing its progress, perhaps, the times of Apples’ outstanding innovations has passed.
My choice is Google, because I find it more flexible. Unlike Apple, Google is more perceived as being a program, an intangible driving asset, which, due to its characteristics, is much easier to introduce, cheaper to update and it has more diversified options to be spread due to its compatibility with a wide range of devises. Google has a variety of directions for the development; it can be presented in numerous ways and be successful: “The new Apple watch was unveiled with much fanfare, but did you know Google is collaborating with TAG Heuer on a high-tech timepiece of its own? Or that Google Fiber provides high-speed Internet access in 18 cities in an effort to build out a reliable telecom arm that could, by some estimates, generate “tens of billions a year in revenue”? Or that downloads from the Google Play app store outpaced Apple App Store downloads by roughly 60% last year thanks to the dominant Android OS?” (Reeves, 2015). While Apple has stuck at crossroads, Google is pushing higher (Sanders, 2015). However, Google does have to be careful in the nearest future: when the predicted 72% of population will be using mobile applications for the internet search, Google may start losing income from advertisement (Sun, 2015). Another negative for Google fact is that the search program is in not being used for each and every search: customers diversify the programs due to their needs; they turn to Amazon for products search, for example. Thus, the company needs to keep an eye on its competitors and to be ready to adjust fast enough.
As I have already stated, my investments would go to Google, because I find it more flexible in terms of the business model. Unlike Apple, Google is an open technology platform that can work with any device; so unless Apple somehow manages to take over the world and leave no other option for the customers, I have found Google as a right place for my money.
References
Reeves, J. (25th of March, 2015). 7 Reasons to Buy Google Stocks. Market Watch.
Retrieved from: http://www.marketwatch.com/story/7-reasons-to-buy-google-stock-2015-03-25
Sanders, P. (22nd of July, 2015). Google Stock or Apple Stock? Why Investors Should Choose Both. US News: Money.
Retrieved from: http://money.usnews.com/money/personal-finance/mutual-funds/articles/2015/07/22/google-stock-or-apple-stock-why-investors-should-choose-both
Last Year’s Rank 5: Apple. Fortune 500.
Retrieved from: http://fortune.com/fortune500/apple-5/
Sun, L. (29th of April, 2015). Google Inc. Investors Can’t Ignore These 3 Weaknesses. The Motley Fool.
Retrieved from: http://www.fool.com/investing/general/2015/04/29/google-inc-investors-cant-ignore-these-3-weaknesse.aspx
