Google Is Leaving Apple Behind

Over the last several quarters, Google (NASDAQ: GOOGL  ) has been on the forefront of introducing several new technologies that, while not huge revenue drivers yet, contribute significantly to public perception. Google Fiber, Google Glass, and now Project Loon are all positive steps for the king of search. Conversely, ever since shares hit an all-time high last fall, Apple (NASDAQ: AAPL  ) has struggled to maintain its stock price and convince investors it's still a leader in innovation.

In the video below, Fool contributor Doug Ehrman discusses the apparent gulf between these two rivals and what it could mean for your portfolio looking ahead.

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.


Read/Post Comments (13) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 22, 2013, at 12:25 AM, PaulApp wrote:

    Secret translates to nothing if Apple can't give proof as being secret leads to new innovative products!

  • Report this Comment On June 22, 2013, at 1:20 AM, applefan1 wrote:

    God, I wish the media would get off of this innovation BS. First off, Google Glass hasn't taken off. Yeah, there are some that want those things, but I don't see those taking off as much as others do. I think they'll end up being too much of a nuisance than it's worth.

    Google Fiber? Apple isn't trying to be a ISP, so that's moot. Since Google Fiber is new, time will tell if it's profitable and successful. But it's not really innovation, it's just bundling of pre-existing technology.

    Project Loon? Come on, that's just some wierd idea of how to spend money and call it innovative. I don't see much coming from it.

  • Report this Comment On June 22, 2013, at 1:52 AM, symbolset wrote:

    Google Fiber has only completed two fiberhoods and 30 more are under way. 50 more will begin by the end of summer. By the end of winter KC MO and KC, KS should be materially complete. They will start on the wider metro area before then with 10 more cities signed up and more announcing every month.

    Provo, UT is already wired and people just have to pick up their new cable boxes and sign up. That will complete sooner rather than later.

    This is an unheard of scale of ramp for a new ISP business and far faster than the previously announced plan. It seems Google is quite serious about making hay while the sun shines.

  • Report this Comment On June 22, 2013, at 1:55 AM, chitownfool68 wrote:

    It's amazing to hear everyone keep echoing all this nonsense. Google RARLEY starts anything this it finishes. It's not a innovative company, as much as it is a "lets see how much crap we can trow at a wall and see what sticks," company. Google has more failures than it has successes, as evident by it's growing litany of "shutting down" products.

    Google glass, interesting, not proven. But there are SO many problems with the concept, just wait until people pay their $1000 and find out they're banned in almost every place they want to take them. Yes, they WILL be banned in a lot of places, trust me. What good is it. They will be cool, they will be fashionable to some, but I'm confident they will end up being paper weights to many, along with the distraction problems they will create for walking, driving, etc.

    You know people will use them to do the regular tasks they perform on their phones, and don't tell me "but you can see the world around you..." Not when you're focused at a quarter inch off your eyeball. Hell, people can't see past the ground when their texting for gods sake. Just wait for the bad PR that's coming when someone with their Google glasses kills a family on the road because they were focused on their email, or texting, or recording video, or whatever. It's GONNA happen. It's just a matter of time. So yes, they will be banned a lot. I wouldn't dare base ANY investment decision on this product, not unless it was a sure thing, short term investment that I could get out of before the shite hits the fan.

    Google doesn't compete with Apple as much as everyone thinks they do. Google tries to be all things to all people, and if history has taught us anything, those that reach too far end up falling hard and achieving nothing.

    Apple is not perfect, but what they do, they do VERY well, and they make people HAPPY doing it. Sure, the tech heads might not like it, but Apple's not in business to make the tech heads or crappy armchair analysts happy. They could care less about that demo. And before anyone goes on about a lack of innovation, how soon your all forget, the iMac was introduced in 1998. It took three years before the iPod was released, which changed many industries. It took another SIX years before the iPhone was released. So, it takes time to do it right. We're just in Apple's R&D trough. (I don't include the iPad 2010 since it's a natural progression of the iPhone) In the meantime, they continue to lead the computer industry with the most compelling portable hardware on the market. What Apple does, everyone else follows, so do give me this lack of innovation drivel.

    The real fact is, Google doesn't exist if Apple doesn't. Don't believe me, look at Android circa 2007. Sure, they have search, and they do it really well, so well in fact, they know WAY too much about each and everyone one of us, which is really scary. I for one appreciate Google, but don't trust them any further than I can throw them. To say they stand for innovation strains credulity! I'll keep investing in Apple for the long haul.

  • Report this Comment On June 22, 2013, at 2:52 AM, bobyk3 wrote:

    Google Wave - Failure. Great idea, no practical use.

    Google+ - Failure. Concept of circles is actually a barrier to social networking.

    Google Glass - Failure. Unhealthy. Damage to eyes and radiation on brain. Its inconvenient. Its distracting. Its unlawful in many contexts (e.g. driving).

    Project Loon - Failure. Chaos with maintaining balloons. Those who don't have internet likely don't have food, water, home and electricity.

    Android is much worse than Windows. Android is the most fragmented OS.

  • Report this Comment On June 22, 2013, at 3:48 AM, 1golfdoc wrote:

    being a non techie, i always struggled to learn anything on a dell. after a couple years of that, my brother who is a techie convinced me to try apple. i always like the newest thing so i have brought all the rest of my family into hand me down apple products. i have gotten many desktop, laptops, iPod, iPads, & iPhones. still not that good of computer skills but not one of my products from apple has broken down and the devices easily interact with each other. now all of the kids are able to answer my questions on how to run the computer that i gave them.

  • Report this Comment On June 22, 2013, at 7:36 AM, nbrait wrote:

    As we step into the future, humans no longer need to become more "technological." Instead technology needs to become more human. Apple is doing just that. My 2 year old learned how to use an iPad by himself. I'd like to see that on an android device. Don't get me wrong, Google is trying . . . hard, but Apple has the whole package: hardware, software, innovation, etc... Anyone can pick up an Apple product and use it. It's simple, but it's what puts them above the rest. Who wants to learn how to use Google Glass? I feel like if Apple made something "new" and "cool" you wouldn't have to watch tutorials on YouTube on how to use the thing.

  • Report this Comment On June 22, 2013, at 7:38 AM, nbrait wrote:

    And I love how I can still use my iPad after my 2 year old smashes the screen up . . . Hahahaha

  • Report this Comment On June 22, 2013, at 10:48 AM, iphonerulez wrote:

    I have to admit that the hedge funds do love Google a lot more than they like Apple. Google has a relatively high valuation because it's the major player in search engines. I'd just love to see Apple take some of its spare cash and go head to head with Google in search. Maybe Google has some powerful search algorithms but they can't be the only ones that would do a good job. Apple's got a bunch of server farms and they could spend plenty of time indexing lots of data. If Apple could get its own search engine for all of its iOS devices, it could really take a bite out of Google search revenue

  • Report this Comment On June 22, 2013, at 3:10 PM, ScottAtlanta wrote:

    Apple Fanatics are funny. Thank goodness it's only iphones in their hands and not stones or that'd be the last of Doug and anyone else who dare take the name Apple in vain.

    They'd never get hired via interview.

    "What would you say are your biggest weaknesses?"

    "How dare you! What a preposterous question!!!

    I have no faults....I am like Apple. Perfect in every way. All the world is second to me....and to Apple. Even a two year old knows that!!!"

    @Doug -- Hey man, I'm glad to see you caught up on your reading.

  • Report this Comment On June 22, 2013, at 4:10 PM, chitownfool68 wrote:

    @Scott. Has nothing to do with "Apple Fanatics" as you put it. Apple is one of the most well run, disciplined companies on the planet. It's amusing when pundits and armchair analysts think they know what's best for these types of companies, when the companies do just fine without their help. Apple, and others like it, didn't get where they are because they listened to wall street and low grade print and online publications. It's the anti-apple establishment that needs to be taken down no-and-then for their erroneous and shyster reporting. Most pundits I fear do so because of a need to manipulate stocks for no reason other than their own personal gain.

    Apple doesn't need to win the "cheap" phone wars to succeed. They already own over 70% of the profits. They typically own the lions share of profits in every market they compete in. What else does anyone need? But I guess enough isn't enough, especially when you want to bleed a turnip and promote a company that, quite frankly, I believe in the next 10-20 years COULD do serious damage to this country. I don't like Google's business model. It truly does not have it's customers needs at heart.

  • Report this Comment On June 23, 2013, at 7:43 PM, ScottAtlanta wrote:

    @chi....

    "when the cos. do just fine by themselves..."

    lol....if "fine" is nearly 50% lower stock price, sure......just keep holding that stock...and keep believing. I'm sure the now dead Jobs will appreciate your loyalty.

  • Report this Comment On June 24, 2013, at 2:28 AM, nazaib wrote:

    I like much more your this a huge technical and with full of knowledge helping site. May Allah make you successful respected.

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