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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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”