Google is fascinated with technologies that might work a generation from now, but has had problems scaling and monetizing those investments.
Where Amazon out-innovates them is by focusing on the near-term future rather than the horizon, and by concentrating on those products or services that will add to financial gains sooner rather than later. JL
Fahad Saleem reports in The Library for Smart Investors:
Apple Inc. is trying to reinvigorate growth in its iPhone product line (but) slashed its iPhone 7 production orders by 10% for the first quarter of 2017. Google has invested in myriad “moonshot” projects, from robots to energy and self-driving cars but the company seems to have an execution problem. Amazon beats Apple and Alphabet with its long term vision and product strategy.
It’s all about innovation and pushing beyond limits when it comes to growth and vision in the tech world. Amazon.com, Inc. (NASDAQ:AMZN) clearly beats Apple Inc. (NASDAQ:AAPL) and Alphabet Inc (NASDAQ:GOOGL) with its long term vision and product strategy.
Amazon’s Pioneer Products in IoT
Amazon launched its smart home assistant speaker, Amazon Echo back in 2014 when Google and Apple were just in the rudimentary stages of realizing the fact that smartphones and apps are approaching their saturation points and the future belongs to AI and Internet of Things. In 2016 holiday season, Amazon Echo and Echo Dot were the most popular devices bought by people. Echo Dot is the latest mode of Amazon Echo. It is powered by Alexa, the smart assistant which takes user voice commands and execute them. Amazon.com, Inc. is clearly a trend setter in IoT, a market where estimated annual revenues are excepted to surpass $470 billion by 2020. Alphabet Inc’s Google has recently launched Android Things, a special operating system for making IoT-based mobile apps and software. Google also launched Google Home, a smart home suite, in November 2016. Alphabet has another interesting product called “Nest” which acts as a smart device to control temperature, detect fire and control devices. Apple Inc. also has its own IoT platform, HomeKit. However, it didn’t get the expected popularity.
Amazon’s Powerful Footprint in eBooks Industry
Amazon.com, Inc. receives a huge chunk of its revenue from its Kindle product line. The company started selling Kindle reading devices based on the popularity of eBooks. Today, Amazon has over 70% of eBook market share. Alphabet Inc and Apple Inc. do not have a footprint in this area.
Amazon Dwarfing Google, Apple in Cloud
Amazon remains the leader in Cloud services, thanks to its sterling Cloud platform, Amazon Web Services (AWS). Amazon’s AWS revenue in 2016 is expected to come in at $12 billion, compared to $7.9 billion last year. Over the past four quarters, AWS accounted for two-thirds of Amazon’s operating profits. Amazon.com’s, Inc. only competitors in this area are Alphabet Inc and Microsoft. Apple has no Cloud platform for advanced Enterprise. Its iCloud service is only for iOS and Mac users. Apple’s adherence to its ecosystem-centric approach may cost the company dearly in the future.
Amazon’s Revolutionary Technology in Retail
Amazon recently revealed Amazon Go, a disruptive new way to do shopping in stores. Amazon Go promises to change the way we shop forever. Amazon Go promises no checkout lines and quick shopping in an unprecedented way.
Problem with Apple and Google
Apple Inc. is focusing entirely on trying to reinvigorate growth in its iPhone product line, which has clearly lost steam, and future is not looking very promising, as well. Apple slashed its iPhone 7 production orders by 10% for the first quarter of 2017, a clear sign that the company will have to tap into other areas like IoT, robots, content and AI. Alphabet Inc’s Google deserves appreciation on its ambitious “moonshot” projects. From robots to energy and self-driving cars, Alphabet Inc has invested in to multiple product lines. But the company seems to have an execution problem. It has invested millions in moonshot projects so far has faced problems after failing to properly use its robotics startups.
Amazon’s Future is Bright
Amazon.com, Inc. is also working on new product delivery methods, self-driving trucks, streaming content and drones. The company has a flexible working structure and no standardization, thanks to Jeff Bezos’ vision.