Gravity pulls Apple. Alphabet dislodges it as most valuable company
Alphabet has displaced Apple as the most valuable company in the world. This week, Alphabet at $560 Billion, surpassed Apple’s market valuation at $540 Billion.
Positives for Apple since the Sun sunk on some stars in Samsung’s Galaxy
Apple had some good news too. It overtook Samsung in smartphone sales in the quarter ending Dec 2016. Samsung has been having technical problems with some Star launches/products in its Galaxy line up. This helped Apple no doubt, making it the undisputed Leader now in the smartphone segment. It has for some time been the revenue and profit leader in the segment. Apple’s profits in the segment has for some time been far more than the combined profits of other players. Imagine!
The Companies that is Alphabet!
The funny thing about the most valuable company in the world is that the common man may not recognize/realize what it is. Most would fail to recollect it as the newly created parent of Google. Not many valuable companies may have been in this position.
Google’s Gamble Pays Off
It could have been a easy decision for Google not to hide its marquee brand behind a new name. However the contrarian team behind Google decided to structure the various ventures they were increasingly floating behind a seemingly non-descript umbrella name.
Besides the company’s market valuation, on a brand level too, Google has dislodged Apple as the most valuable brand in the world.
The A-Z of abc.xyz
A lot of things about Google has been different. “Google is not a conventional company. We do not intend to become one.” paraphrases Larry Page on Alphabet’s website, abc.xyz
The story of how abc.xyz came to be their domain name, is itself a study in making a creative solution out of a seeming challenge. Alphabet.com and abc.com were already in use by a division of BMW and the American Broadcasting Corporation respectively. That ‘.xyz‘ became a top level domain name in June 2014, helped too.
Rather than getting bogged down, Google’s founders have creatively coined the website name in synch with the company name. With Alphabet as a flagship user, the quirky ‘.xyz’ top level domain name has become the 4th most popular top level domain name.
The Building Blocks of the Alphabet Stable
Cool Chilli’s Comments
It is nice to see a ‘social and ethical’ brand like Google/Alphabet doing well.
Apple too is/has been a great company with a passionate focus on doing good/the best by their customers. Founder Steve Jobs acquired his cult status because of his uncanny ability to understand (and deliver) what the Consumers would like to have , without they themselves realizing it well in the first place.
Don’t Be Evil evolves to “Do the right thing”
Google’s founders have been more behind the scenes kind of players, not really wishing the lime-light. (Nothing wrong if they want to, of course). Google however is seen more of an ethical player. Its corporate motto of ‘Don’t Be Evil’ and the values it espoused seemed to capture the imagination of an entire generation of users and stakeholders as perhaps no other company has managed to, from a ‘values’ perspective.
Both companies have also been at the centre of a few lawsuits filed against one another and also by other entities…. on software plagiarism et all. There have been some concerns raised by a few consumer groups/governments on Google’s collection of private information of users. Hope Google is able to address these sufficiently well.
Google is in the unique position of being able to execute good governance practices. It has always been influential, but the official world No 1 in market evaluation makes a huge difference too. As companies become more successful and profitable, their share of global wealth vis a vis other companies will also increase. There are already companies and ‘organizations’ with turnover and ‘influence’ much more than many countries’. The role of these Companies in building the right values and making their employees and associated better citizens cannot be ignored.
Who can forget that Google was the first company to stand up to the Chinese government’s clamp down on its citizens’ freedom. It tried to walk its talk and set an example. Here’s raising a toast to Google and Alphabet!
Vive La Corporate Citizenship, Google….May your tribe increase!