Tuesday, 24 January 2012

Will Google do an Apple?

Despite posting a lower than expected earning result last week Google still managed to earn$37,900,000,000 in 2011 of which 96% came from advertising . Now Google do a lot more than just offer a search engine, but the question is “why bother?”.

If you make such a huge amount from your core business isn’t it good business sense to jetison the less profitable sides that might be dragging you down. Apple had revenue of $24.67 billion in Q2 last year - yes just one quarter - with Macs and iPhones selling in huge numbers.

But desktops, peripherals and in particular software make up such a small part of the revenue that Apple will generally stop or reduce development in non-core products.

The most obvious example of this is their editing software Final Cut. When it was launched it ripped open the professional editing market and everyone from the BBC down jumped on the bandwagon. Now that wagon is going around picking up the Macs no-one wants because FCP is now FC Pro X (or FuCXed as some call it). It doesn’t sell millions of packages because there aren’t a million editors out here.

So Apple will call it “a revolution in creative editing” but I think it is rotten to the core and will gradually become a way of editing whatever you are watching on your iPad. It makes sense to ditch it - to me and the much smarter people at Cupertino.

So what will Google do when they see that they don’t really need to supply all these great aps that people love but not quite enough to pay greenbacks for? Hopefully they will say “we’re making enough, let’s give something back”, because if I lose Google Calendar my future looks as bleak as that of Final Cut Pro X.

No comments:

Post a Comment