Alphabet Inc., the parent company of Google, Calico and Nest Labs has officially taken the crown of most valuable company in the world. That position had been held by Apple for a very long time and Alphabet’s rise is significant as the two companies are direct competitors. The official numbers at the close of the trading day went to Alphabet who is now worth $555 billion and Apple scored in at $533 billion. Apple stock has been dropping due to slower than expected iPhone sales as well as other devices that aren’t performing as well as expected. Apple tried to blunt the blow by releasing their overall device sales, which stands at just over one billion devices sold, but that still didn’t give investors confidence.
Alphabet’s core business is still in search and advertising which includes a healthy dose of user data aggregation. The company is also investing in many other ventures from robotics and health to self-driving cars and virtual reality. Like any tech company they have experienced their fair share of dud projects but the search and advertising revenue is strong enough to keep the wheels turning a profit. Apple on the other hand has fallen into a stagnant state of innovation, playing it safe and relying on a let’s wait for the market to speak approach which may have bitten them harder than they would admit.
The news that Alphabet has passed Apple as the most valuable company is most significant in tech circles as this will hopefully push Apple to wake up from their nap. Apple may be banking on the new iPhone 5se to help pull them from their funk but it will probably take more than a budget iPhone to do that. Apple needs to stop hiring so many marketers and lawyers and start hiring people who have ideas and want to innovate. The elaborate video presentations of the iPhone and the new Macs have seen their day, people want something new so it’s your move Apple. In the meantime Alphabet seems to be pushing its own innovative minds. Sometimes they score, sometimes they don’t but at least they’re trying.
What do you think of Alphabet becoming the world’s most valuable company? What is Apple doing wrong if anything? Let us know your thoughts in the comments below or on Google+, Facebook and Twitter.Source: Japan Times