There are two factors that apply to both Android and Apple that should give their investors pause.
1. Most of the world is already on Android.
2. 75% of Google’s search revenue comes from iOS.
Knowing these two facts you’d think that the tech press would be spilling barrels of ink on how Google had better think of the next big thing fast. Google’s two avenues to increase ad revenue are approaching the end of the runway and none of their moon shots seem to show imminent promise. One of these two companies has diminished growth prospects and it’s not Apple.
Even if Apple did decide to simply double-down on the iPhone business and ignore getting into any complementary markets, they would have plenty of room to expand. They could still wage a two front war of both stealing device market share from Android and stealing the search business on the iOS installed base. Device sales could still double over the next five years and iOS search could explode. Both of these endeavors would come at Androids expense.
So even though the public hand-wringing over Apple’s first speed bump in Q2 has been grossly over done I think it’s a testament to what a juggernaut the iPhone has been. Kind of like a New England Patriots team getting their first loss after winning the first 12 games of the season is notable whereas the Detroit Lions losing another one isn’t.
1. Most of the world is already on Android.
2. 75% of Google’s search revenue comes from iOS.
Knowing these two facts you’d think that the tech press would be spilling barrels of ink on how Google had better think of the next big thing fast. Google’s two avenues to increase ad revenue are approaching the end of the runway and none of their moon shots seem to show imminent promise. One of these two companies has diminished growth prospects and it’s not Apple.
Even if Apple did decide to simply double-down on the iPhone business and ignore getting into any complementary markets, they would have plenty of room to expand. They could still wage a two front war of both stealing device market share from Android and stealing the search business on the iOS installed base. Device sales could still double over the next five years and iOS search could explode. Both of these endeavors would come at Androids expense.
So even though the public hand-wringing over Apple’s first speed bump in Q2 has been grossly over done I think it’s a testament to what a juggernaut the iPhone has been. Kind of like a New England Patriots team getting their first loss after winning the first 12 games of the season is notable whereas the Detroit Lions losing another one isn’t.
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