Google is about to overtake Apple, and Apple couldn't be happier

If Apple can make more money coming second, why would it want to come first?

No one could ever call me an Apple fan (their walled garden approach is something I could never get on board with) but the reports that Android is about to catch up and overtake iOS as the most popular app platform can be nothing but good news for Apple - and in particular their world-class marketing department.

Google’s Android has sold around 300m more devices worldwide than Apple, with Android seeing half a billion more downloads a month on its Play store than through Apple's App store. Not that this means much, though, as Apple continues to rake in more cash with their 30 per cent cut of apps sold than Google (who now take 27 per cent - up from 19 per cent in November 2012).

So if Apple can still make more money when being number two, why would they want to be number one?

The reason Apple historically sold so many products and had people queuing around the block was that it was the alternative to the mainstream. There is a magic associated with the Apple brand that being number one is eroding away. If Google takes this crown and becomes the everyday product that everyone and their mum uses, Apple could hold on to that special something that made people spend twice as much on them rather than settle for one of their many competitors.

As a company, Apple spent so long trying to break out from under Microsoft’s shadow that now it has, and it stands as the undisputed king of the technology industry, it doesn’t know what to do with itself. It doesn’t know how to market its products, or who to aim them at, so it veers wildly between trying to come across as the cool alternative for young creative types and trying to convince corporate clients that it’s a steady mainstay – as reliable as IBM, or the company previously known as RIM.

The Mac vs PC days of boring corporate suits being mocked by the cool, young music-maker seem a far cry from today as the US Department of Defence approves iPhones for military use and executives demand iPhones from their companies to replace their once beloved BlackBerrys.

We’ve seen Apple’s market value fall consistently every month since its peak, from just over $700 per share in September last year, something that is likely to continue if Apple remains on the road to becoming the Everyman’s Microsoft 2.0 in a tightly controlled aluminium case.

Apple needs a corporate behemoth to be second to, to outdo and feel superior to; it’s built into the company’s history and its soul. Like the rebel who becomes king and realises sitting on the throne isn’t much fun, Apple needs to be out, fighting its cause. Apple should be glad that Google has stepped up to fill that role in the mobile arena.

Photograph: Getty Images

Billy Bambrough writes for Retail Banker International at VRL financial news.
 

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Why Theresa May can't end speculation of an early general election

Both Conservative and Labour MPs regard a contest next year as the solution to their problems. 

One of Theresa May’s first acts as a Conservative leadership candidate was to rule out an early general election. After a tumultuous 2015 contest and the EU referendum, her view was that the country required a period of stability (a view shared by voters). Many newly-elected Tory MPs, fearful of a Brexit-inspired Ukip or Liberal Democrat surge, supported her on this condition.

After entering Downing Street, May reaffirmed her stance. “The Prime Minister could not have been clearer,” a senior source told me. “There won’t be an early election.” Maintaining this pledge is an important part of May’s straight-talking image.

But though No.10 has wisely avoided publicly contemplating an election (unlike Gordon Brown), the question refuses to die. The Conservatives have a majority of just 12 - the smallest of any single-party government since 1974 - and, as David Cameron found, legislative defeats almost inevitably follow. May’s vow to lift the ban on new grammar schools looks to many like an unachievable task. Former education secretary Nicky Morgan and former business minister Anna Soubry are among the Tories leading the charge against the measure (which did not feature in the 2015 Conservative manifesto).  

To this problem, an early election appears to be the solution. The Tories retain a substantial opinion poll lead over Labour, the most divided opposition in recent history. An election victory would give May the mandate for new policies that she presently lacks.

“I don’t believe Theresa May wishes to hold an early election which there is evidence that the country doesn’t want and which, given the current state of the Labour Party, might be seen as opportunistic,” Nigel Lawson told today’s Times“If, however, the government were to find that it couldn’t get its legislation through the House of Commons, then a wholly new situation would arise.”

It is not only Conservatives who are keeping the possibility of an early election alive. Many Labour MPs are pleading for one in the belief that it would end Jeremy Corbyn’s leadership. An early contest would also pre-empt the boundary changes planned in 2018, which are forecast to cost the party 23 seats.

For Corbyn, the possibility of an election is a vital means of disciplining MPs. Allies also hope that the failed revolt against his leadership, which Labour members blame for the party’s unpopularity, would allow him to remain leader even if defeated.

Unlike her predecessors, May faces the obstacle of the Fixed-Term Parliaments Act (under which the next election will be on 7 May 2020). Yet it is not an insurmountable one. The legislation can be suspended with the backing of two-thirds of MPs, or through a vote of no confidence in the government. Alternatively, the act could simply be repealed or amended. Labour and the Liberal Democrats, who have demanded an early election, would struggle to resist May if she called their bluff.

To many, it simply looks like an offer too good to refuse. Which is why, however hard May swats this fly, it will keep coming back. 

George Eaton is political editor of the New Statesman.