Windows is an operating system which resides on many makes and models, premium end and entry level. The Mac is a personal computer hardware platform which only resides on the premium end of the spectrum and is clearly differentiated by macOS vs. Windows-whatever.
The same comparison shows up on Android vs. iPhone. iPhone is like the Mac. It’s a hardware platform. Android is like Windows. It shows up on premium, entry level, and all models in between.
Likewise, Apple somehow made it to the FAANG list and that brought me to two conclusions. First, Apple doesn’t belong on FAANG. Second, the entire FAANG list is stupid. What is FAANG? I mean, other than stupid? Eustance Huang:
FAANG stocks consist of Silicon Valley tech giants Facebook, Amazon, Apple, Netflix and Google-parent Alphabet.
I understand that humans have a need to compare and contrast items of interest but maybe we should have some rules because we’re not very good at it. For example, we compare movie box office results from decades ago to movies of today, yet it costs far more to view a movie these days than it did in the past.
How does Facebook compete with Apple? Or, Netflix? Or, Amazon? See the problem? The only thing these influential companies have in common is their size, and based upon profits, Apple is the largest because it has more profits than the other four combined. What else? Facebook and Google make their revenue via advertising. Netflix sells streaming movies and TV shows. Amazon is a big online store.
Only Apple designs and builds hardware. Apple is a hardware company.
Wait! What? Doesn’t Google and Facebook and Amazon make hardware that competes against Apple? Hardly. Apple sells more iPhones in a week or two than Google sells Pixel smartphones all year. Amazon never publishes how much or how many of its own hardware it sells (because to do so would be embarrassing when numbers are compared to Apple).
Facebook and Google are in trouble thanks to their poor record on privacy. Amazon isn’t far behind. Apple and Netflix never get singled out or compared to the social network giant or search engine giant. Ignore market analysts who put Apple in the same company as Facebook, Google, Netflix, or Amazon. Why isn’t Microsoft on the list? Maybe the initial “M” doesn’t fit. How about MAFANG?
Market analyst Ray Wang is among those that do this kind of stupid analysis and this is why you should ignore his advice. He thinks Apple ‘missed the whole market‘ in India (where nobody makes money) and “screwed up on pricing” with new iPhones (yet Apple will make the most money on smartphones; again– and is better positioned to give discounts and still make money) and thinks the Mac maker has “done a good job shifting from products to services revenue” but doesn’t explain how Apple will make money if it’s not a hardware company.
Apple should not be a part of FAANG. If it is, then Microsoft needs to be in there, too, and it’s not. Why not? Marketeers don’t want to be caught saying MAFANG.