"Gemini is practically guaranteed. With the ad model already primed, their financial resources, their traffic to endlessly promote Gemini (ala Chrome), their R&D capabilities around AI, their own chips, crazy access to training data, and so on - they'd have to pull the ultimate goof to mess up here"
Im not convinced on this TBH in the long-run. Google is seemingly a pure play technology firm that has to make products for the sake of it, else the technology is not accessible/usable. Does that mean they are at their core a product firm? Nah. Thats always been Apple's core thing, along side superior marketing.
One only has to compare Google's marketing of the Pixel phone to Apple - it does not come close. Nobody connects with Google's ads, the way they do with Apple. Google has a mountain to climb and has to compensate the user tremendously for switching.
Apple will watch the developments keenly and figure out where they can take advantage of the investments others have made. Hence the partnerships et al with Google.
Think about the stock return over a period - its composed of capital gains and dividends.
Now what happens capital gains disappears and perhaps turns into capital losses? Dividends have to go higher.
What does this mean? Less retained earnings / cashflows that can be re-invested.
Apple is the only one that will come out of this OK. The others will be destroyed for if they dont return cash, the cash balance will be discounted leading to a further reduction in the value of equity. The same thing that happened to Zuckerberg and Meta with the Metaverse fiasco.
Firms in the private sphere will go bust/acquired.
> Now what happens capital gains disappears and perhaps turns into capital losses? Dividends have to go higher
This is not how corporate finance works. Capital gains and losses apply to assets. And only the most disciplined companies boost dividends in the face of decline—most double down and try to spend their way back to greatness.
Im not convinced on this TBH in the long-run. Google is seemingly a pure play technology firm that has to make products for the sake of it, else the technology is not accessible/usable. Does that mean they are at their core a product firm? Nah. Thats always been Apple's core thing, along side superior marketing.
One only has to compare Google's marketing of the Pixel phone to Apple - it does not come close. Nobody connects with Google's ads, the way they do with Apple. Google has a mountain to climb and has to compensate the user tremendously for switching.
Apple will watch the developments keenly and figure out where they can take advantage of the investments others have made. Hence the partnerships et al with Google.