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Mobile Devices Are the Future

A look at Google and Apple’s most recent numbers

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The recent quarterly financials from both Google and Apple are stunning. Google has revenues of $14.42B in this quarter, while Apple had revenues of $54.5B. Google returned earnings per share of $8.62 and $13.81 for Apple. Apple’s numbers did fall short of Wall Street’s expectations; however, they exceeded their own. Google’s showing 36 percent in revenue growth year over year, with 17 percent growth for Apple.

What these numbers show is the consistent growth of mobile devices and their import in our economy. Clearly these revenues are indicative of growth in the mobile industry, across segments (ads, apps, carriers and devices). Most of Google’s revenue is derived from ads, in one form or another. Google’s big numbers show an increase in use of the operating system, but also their applications on operating systems (such as iOS). Over 100M Android smartphones were sold in the past quarter, which gives Google a lot of ad revenue to draw from.

Apple sold over 80M iDevices in the past quarter, which includes iPhones, iPads and iPod. Apple makes the most of their money from high margins on devices and proceeds from app and content sales in the iTunes shop. While they continue to out sell themselves with iDevices, former mainstays such as iMacs and MacBooks are selling in lower numbers. It does appear though that they are selling 2/3 iDevices for every iMac or Macbook they don’t sell.

In terms of Apple, we need to learn to ignore analyst expectations. Apple’s numbers set their stock in a tailspin, because they did not meet analyst expectations. Google keeps moving forward, exploring new revenue streams, and finding creative ways to make money. Larry Page, the Google CEO, says that Google needs focus, to identify the top performing capabilities and focus on them.

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More Stories By Bob Gourley

Bob Gourley, former CTO of the Defense Intelligence Agency (DIA), is Founder and CTO of Crucial Point LLC, a technology research and advisory firm providing fact based technology reviews in support of venture capital, private equity and emerging technology firms. He has extensive industry experience in intelligence and security and was awarded an intelligence community meritorious achievement award by AFCEA in 2008, and has also been recognized as an Infoworld Top 25 CTO and as one of the most fascinating communicators in Government IT by GovFresh.

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