Google Google

There are two notable reasons why betting long on Google is a good idea. The first is based what the company is doing today… right now; and that is the making of lots of amazing applications. One only needs to Google Google to see the variety of industry leading services that the company currently provides in addition to its ubiquitous web search. With Google Search, Google Images, Google Maps, Google Navigation, Google+, Google Translate, Google Calendar, Gmail, Google Drive, Blogger, Picasa, Chrome, Android and YouTube (to name a few) the company has successfully created an ecosystem that millions of people rely on, and as its services get smarter and become increasingly more integrated, this dependence will only get greater. Google has played the long game with the development of its services, as applications have gone through varying iterations, benefiting from improved user interfaces and functionalities. However, it was Google’s recent holistic overhaul in bringing a consistent user experience to all of its products that demonstrates the company’s intention to be a one stop shop for the majority of your needs. Couple the synergy that now exists across its applications and services with the ever maturing Chrome and Android operating systems and it is clear that Google has strategically positioned itself to be relevant well into the future. Yet despite the company’s success in delivering market leading applications to date, the most exciting aspect of the company’s evolution is what they are planning for tomorrow. 

The second reason is that Google is investing heavily in the development of products and services that will change the world, which when utilised in coordination with what the company has built up until today, makes for an incredibly exciting future. Google’s top secret X Lab is the type of thing that belongs in a Sci-Fi novel rather than in Mountain View California; it's a playground for the world’s brightest minds and most sophisticated engineers, who are encouraged and funded by Google to build the products of the future… today. Thus far the most notable developments from the X Lab are the self-driving car and Google Glass, two products that will fundamentally alter the way that we live our lives. When such advances are combined with the company’s other established and data rich applications, one can envisage a world in the near future where the way we carry out our daily tasks is entirely different. Google is not simply reacting to industry trends, it is looking 10, 15 years ahead and is playing a pivotal role in creating new realities. The recognition that is now afforded to Google for its Avant-gard thinking used to belong to a certain company from Cupertino. 

Whilst Google is grabbing headlines with regard to its innovation, Apple, known for is world leading design appears to have entered a period of stagnation. The world’s richest technology company has failed to excite the public, which as a result of the company’s previous successes, is beginning to cause disappointment.  Apple’s iOS operating system is failing to stack up against competing platforms, the recent release of iTunes 11 was met with mixed views and there is a general feeling of dismay with regard to company’s existing product line (save the for the iPad mini, which was a reactive development rather that proactive one). There is no doubt that the company presently makes cutting edge hardware with beautiful and easy to use software, but investors looking two or three years down the line are not convinced that the rate of innovation that has been previously seen can continue indefinitely. The iPod changed the way we listen and buy music. The iPhone revolutionised the way we use our phone. The iPad commercialised a new segment of the market. However questions are starting to be asked about the future of the company. Without any new revolutionary products, Apple has entered a phase of iteration instead of innovation. There is still no sign of Apple’s TV and the only thing capturing the media’s attention is the purported existence of an iWatch, a product which although will undoubtedly be the best implementation of a connected watch that we have seen, is further evidence of the company entering existing markets rather than creating their own. Something which Google has boldly been able to do.  

So what now? There is no doubt that Apple remains incredibly successful and profitable, in fact its market capitalisation is greater than Google, Microsoft, Amazon and Facebook combined, but the recent dip in the company’s share price confirms what many market commentators have been asking. Can Apple continue to innovate at its previous pace without the leadership Steve Jobs? Contrast the questions surrounding Apple with the the huge advances that Google is making with its software platforms, its entrance into the hardware market and its on-going development of futuristic products and it becomes easy to see why betting on Google is a good idea.

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