Apple And Google: The New 'Old' Reality?

released last week showed acceleration in the Google Android platform against the Apple iOS platform in terms of smartphone unit shipments.   Android grew 79% over the period a year ago improving its rankings to a  75% market share compared to a 7% growth for iOS reducing its rankings to a 17% market share.  Prior to Apple’s decade-long run of new products from the iPod to the iPad, Apple was considered a niche player in an industry dominated by heavyweights like IBM and Dell .  Does Apple risk becoming a niche player in the categories it created?  Has Apple returned to its “Old” reality?

A decade ago, Apple had its target set on consumer electronics giant Sony (Walkman) and computer hardware kings IBM and Dell.  Apple won those wars.  Then it took on the Big Three of Cellphones (Nokia, Ericsson, and Motorola) and won that battle too.  But like the old guard Apple surpassed, did Apple take its eye off left field and dismiss Google as just as search company?

Apple has not invested in research and development to stay ahead of the pack.  Over the last twelve months (source: YCharts), Apple has ranked #21 in terms of absolute R&D spending, while Google ranked #7.  As a matter of fact, eight other technology companies, some of these not currently considered innovators, outranked Apple.  Specifically, Intel came in at #1 ($10.3B), Microsoft #2 ($10.2B), IBM #9 ($6.4B), Amazon #15 ($5.4B), Ericsson #17 ($4.9B), #18 Oracle ($4.8B), and Qualcomm #19 ($4.4B).  Apple ranked #21 with $3.9B allocated to research and development or, put in other words, future growth.Read On