Apple, Google, Microsoft

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icrosoftChapter 7 Telecommunications, the Internet, and Wireless Technology

315

Google, Apple, and Microsoft Struggle for Your Internet Experience CASE STUDY
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I I are in an epic struggle to dominate your
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n what looks like a college food fight, the three Internet titans-Google, Microsoft and Apple-

can listen to music and watch videos 24/7? It's no

surprise, then, that today s tech titans are so aggressively battling for control of this brave new '

Internet experience. What's at stake is where you search, buy, find your music and videos, and what device you will use to do all these things. The prize is a projected 2015 $400 billion e-commerce marketplace where the major access device will be a mobile smartphone or tablet computer. Each firm generates extraordinary amounts of cash based on different business models. Each firm brings billions of dollars of spare cash to the fight. In this triangular fight, at one point or another, each firm has befriended one of the other firms to

mobile world.

Apple, Google and Microsoft already compete in an assortment of fields. Google has a huge edge in advertising, thanks to its dominance in Internet search. Microsoft's offering, Bing, has grown to about 10 percent of the search market, and the rest essentially belongs to Google. Apple is the leader in mobile software applications, thanks to the popularity of the App Store for its iPhones. Google and Microsoft have less popular app offerings on ,

the Web.

combat the other firm. Two of the firms-Google and Apple -are determined to prevent Microsoft from expanding its dominance beyond the PC desktop. So Google and Apple are friends. But when it comes to mobile phones and apps Goggle and Apple are enemies: each want to dominate the mobile market. Apple and Microsoft are determined to prevent Google from extending beyond its dominance in search and advertising. So Apple and .

Microsoft is still the leader in PC operating systems and desktop productivity software but has failed miserably with smartphone hardware and software, mobile computing, cloud-based software apps, its Internet portal, and even its game ,

machines and software. All contribute less than 5

Microsoft are friends. But when it comes to the

mobile marketplace for devices and apps, Apple and Microsoft are enemies. Google and Microsoft are just plain enemies in a variety of battles.

Google is trying to weaken Microsoft's PC software dominance, and Microsoft is trying to break into the search advertising market with Bing. Tbday the Internet along with hardware devices and software applications is going through a major expansion. Mobile devices with advanced functionality and ubiquitous Internet access are rapidly gaining on traditional desktop computing as the most popular form of computing, changing the basis for competition throughout the industry. Research firm Gartner predicts that by 2013, mobile phones will surpass PCs as the way most people , ,

percent to Microsoft s revenue (the rest comes from Windows, Office, and network software). While Windows is still the operating system on 95 percent of the world s 2 billion PCs, Google s Android OS and Apple's iOS are the dominant players in the mobile computing market. The companies also compete in music, Internet browsers, online video, and social networking. For both Apple and Google, the most critical battleground is mobile computing. Apple has several advantages that will serve it well in the battle for mobile supremacy. It's no coincidence that since the Internet exploded in size and popularity, so too did the company s revenue, '

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which totaled well over $40 billion in 2009. The

iMac, iPod, and iPhone have all contributed to the company's enormous success in the Internet era,

access the Internet. Today, mobile devices account for 5 percent of all searches performed on the

Internet; in 2016, they are expected to account for
23.5% of...
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