Move over Apple- Google is here – GOOG, AAPL, 005930, XOM & YHOO
Northern, WI 03/07/2013 (gdpinsider) – Before Apple Inc (NASDAQ:AAPL) introduced the iPhone, Google Inc (NASDAQ:GOOG) was king and then the iOS tidal wave rushed in and Google had to constantly struggle to keep its head above the mobile waters. Yesterday Google Inc (NASDAQ:GOOG) traded at 25 times profit in comparison with the Apple’s less than 10 price-to-earnings ratio and was a record. This has been the widest gap between these two companies since June 2005 which was when competition between the two started heating up in the mobile device market.
Online advertising king
The expectation is that Google Inc (NASDAQ:GOOG), which currently has a hold over more than 40 percent of the online-advertising market in the U.S will eventually gain more clout and grab a bigger share of the $37.3 billion that is spent each year by businesses to reach online customers. Investors are more than willing to pay more of each dollar of what Google earns. In addition to this, Google is also in a mobile software partnership with Samsung Electronics Co., Ltd (KRX:005930). This is definitely raising the pressure on Apple even as its investors wait eagerly for the Apple Inc (NASDAQ:AAPL)’s next big product launch.
Apple not yet over and out
The unabated growth of the internet, be it mobile, video, social, local or display advertising has benefited only one company said a market watcher. Apple has not had any thing to show except its devices. There has been an increase of 35 percent in Google shares over the last 12 months while Apple dropped 20 percent. However, its market capitalization is still close to $100 billion higher than what Google Inc (NASDAQ:GOOG),’s, is. Today, Apple continues to be the most valuable company in the world. Exxon Mobil Corporation (NYSE:XOM) follows next and then is Google. CEO Larry Page has helped Google boost its web search share to 67 percent and it now commands 70 percent of the smartphone market.
The shift has to happen
As people move away from traditional computers and gravitate toward smartphones and tablets, Google only stands to gain by concentrating on mobile advertising. Though ad prices will keep on varying in the market the demand for it is a steady one in comparison to the consumer electronics market which keeps on facing shake-ups every time a new product is launched and Apple Inc (NASDAQ:AAPL) is under constant pressure to innovate and add new products to the market. Apple has been trying to do its bit and had replaced a Google maps application that was pre-installed in its devices with its own version. Frustrated users put up poor reviews resulting in Apple firing the manager who had been responsible for launching the software.
From mobiles to TV’s
Google however has been going strong in the mobile advertising and operating system space. More than two thirds of the world mobiles run on Android software and mobile advertising is gaining momentum. Though TV advertising still stands taller at 40 percent, Google is planning on edging into that area via YouTube which is the leading online video-sharing service. Apple is now hoping that the iWatch that is in the pipeline will bring about a change in its fortunes. Tim Cook, the Apple Inc (NASDAQ:AAPL) CEO said that the company is also considering launching new TV products.
Shares of Google Inc (NASDAQ:GOOG) went down by 0.86% to close at $831.38
Shares of Apple Inc (NASDAQ:AAPL) went down by 1.27% to close at $425.66
Shares of Samsung Electronics Co., Ltd (KRX:005930) went down by 1.67% to close at $1,534,000.00
Shares of Exxon Mobil Corporation (NYSE:XOM) went down by 0.06% to close at $89.56
Shares of Yahoo! Inc (NASDAQ:YHOO) went down by 0.65% to close at $22.80