Bloomberg News recently conducted a wide-ranging interview with Google Chairman Eric Schmidt and the headline comments that are lighting up the technology world point to Schmidt’s belief that Google is “winning” the mobile platform “war” against Apple. If Schmidt defines winning by market share, he is correct. But if one defines it according to profits and market capitalization, Apple is clearly winning that war.
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If I were to compare the mobile market to the PC market, I would probably put Google in the IBM position and Apple in the Apple position. Samsung is like Compaq, the first successful major PC hardware seller, who was then supplanted by Dell as margins began to erode and manufacturers began to compete on price. It’s not clear to me that Google, Apple or Samsung have sustainably profitable business models then. I would rather be Apple at this point, given the profits they are making now. Valuation is another question.