@MooglesInMyFace: A lot of Google's services just burn through money. You think Gmail is hosted for free? Or Android's developed by volunteers alone? And let's not forget Docs, Calendar, Reader, Wave, Voice, and of course their massive search servers that store every page their bot has indexed in memory.
The one money-maker they do have, though, is advertising. And apparently, it's a whopper. Which makes sense. Google gets tons of money each year from advertisers who enjoy their targeted, intelligent ads. Meanwhile, Google runs other services that boost their name and brand for pennies on the dollar of what they're ads bring in.
Good business isn't about minimizing losses, but maximizing gains. So long as they can keep up their superior ad targeting systems, they can burn through as much money as they have. And frequently do. #googlestock
@OCEntertainment: It's actually quite a powerful business strategy. By making your biggest products cash losers and your biggest money makers merely integrated into the product, if a product dies, it's a slight loss in profit backed up by a massive reduction in loss. Essentially if someone like Microsoft actually does kill a free service of Google's they'll almost be doing them a favour.
If MS really did want to get a leg up rather than trying to drive Google into the ground, they'd be attempting to bridge the gap with Google and offering paid for time in their apps/sites - maybe even focus on great products rather than trying to take down your competitors. Then again, that'd be crazy. #googlestock
@sortius: Huh?? I don't really understand your logic...
"By making your biggest products cash losers and your biggest money makers merely integrated into the product"
So they DO make money from their "cash losers" then??
"Essentially if someone like Microsoft actually does kill a free service of Google's they'll almost be doing them a favour."
Then how about their "biggest money makers merely integrated into the product" thing? It got killed too right?
The thing is, if some of Google's popular features die, most likely they're suffering bad rep like Yahoo and it'll severely affect they stock. #googlestock
yeah, but if the website(youtube) itself isn't bringing in any money at all, and they just take a loss on it, how is that good business? Even if other parts of google can pick up the slack for youtube it doesn't change the fact that youtube is a money pit.
just my opinion. I don't know how any of this stuff works haha. #googlestock
@MooglesInMyFace: If you fail to see the logic, then the only thing you're missing is the scale.
Let's say for my day job, I get paid $500/hour. Hey, I can dream can't I? Well, that amounts to $20k a week, or little over a million a year. On that kind of money, I can afford to pay for a nice house, all utilities, college tuition for the kids I probably have and still have some left over to sink into my dream DeLorean (If I'm gonna dream, I'm gonna make it rock). Sinking a few hundred to a thousand a week into that thing is hardly hurting my salary. It's a money pit, but it's one I can afford.
As another real world example, for the longest time, Sony was selling the Playstation 3 at a loss per unit. As in, every time you bought a PlayStation 3, Sony lost money, since it cost more to make them they were charging for it. Yet, they made enough profit on games and peripherals to more than make up for it. Nintendo has banked on this strategy for years, selling cheaper than average systems, and yanking money out of your nose through cheap plastic peripherals.
A single product can take a loss, even consistently, if the revenue streams of the company as a whole make up for it. Even if YouTube is losing money, until it threatens Google's huge ad revenue, it's existence is an asset....like as a place to put ads. ;-) #googlestock
@OCEntertainment: Actually Nintendo as Never banked on that strategy... ever. Every Nintendo console ever sold has been sold at a profit, because unlike Sony or Microsoft who can fall back on their revenues from other divisions, Nintendo only makes games.
Thus, even at launch every Wii unit sold made Nintendo money. And then Nintendo made even more money from all the games and addons.
@TheLostVikings R.O.A.C.H.: You'll forgive me. I didn't intend to imply that Nintendo sells console units at a loss. But, as you say, they're a game company. Their larger revenue streams come from games and peripherals. My guess is that the profit margins for many games and certainly a lot of plastic peripherals is a higher percentage than the console itself. This allows Nintendo to invest money in research into things that lead to things like the Wii's motion controls. And whatever other projects that failed before the Wiimote came into being.
The point is to not view any one product as an isolated revenue stream that must sustain itself. #googlestock
Cash flow is one thing, but throw in overhead, labor, and materials and I be willing to bet Google and Microsoft are closer, in terms of profitability. #googlestock
@Michai: I dont agree. If MSFT didnt pay dividends they would be closer to 30-40 billions in reserve. You cant compare a performance to a investment stock. Compare google to apple. They dont issue dividends. #googlestock
With the iPhone Apple as ben verysuccessful bcause theymade a phone that people wan to use and liek to use. If they can keep this up they will kick some ass!
If Benjamin Reitzes starts writing obvious drivel that any monkey with bifocals and a firecracker up its ass could've come up with, and starts losing interest from his readership, his career will run into problems.
If I keep commenting on Gizmodo instead of working, I will run into problems.
Is douchebaggery a Gizmodo writer's requirement or is that obvious? Taking one line out of context and making a useless post about it. Like if we went to Mr Chen's last post and quoted him "Sprint's allowed to make whatever change and sell their phones wherever they want", well gee, does that need to be said either?
@wichsenstar13: The entire article was drivel. Basically, the article said that Apple has a conference next week. Other companies make smartphones. Apple has to compete with those companies. Apple is perceived as leading the industry. If Apple loses that perception, then it won't be able to use that to distinguish itself. So Apple needs to keep reinforcing the perception that it is an industry leader.
These are extraordinarily shallow observations. There is no insight to any of it. That quote, though, took the cake because it is so generic and so basic. If you make things and people want to buy them, then you will not succeed.
This isn't snarking. It's getting caught trying to foist pablum as something remotely insightful.
@wichsenstar13: If the quote was taken out of context, it was taken out of context by the original NYT editor, not Chen or ponies. Look back at the original article and you will see that there was no extra context to the quote that makes the quote not seem so stupidly obvious.
You know what is douchebaggery, though? Posting insulting comments about an editor's writing style on a free blog as if you were somehow cheated of the money you paid to visit the site.
So wait, does the company run into problems after the undesirable products hit the market and people start dumping them for their competitors, or during? I'd like this cleared up, thanks.
I'M A BALLIPEDE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
@TheBallipede: I find it strange that I'm mildly annoyed at the fact that over 90% of your comments say Ballipede, even more annoyed at the fact that the first hit on Google brings me to your activity, but amused that the Uban Dictionary's definition is the combination of a great basketball player, a centipede, and the savior of Christianity, Jesus Christ.
There's already a company that customizes macbook pros into tablets in coordination with Apple. Unless they want to royally screw that company, Apple isn't going to be coming out with their own tablet soon.
@NeoAkira: If this tablet is released, you're looking at something that's likely much smaller, and (surprise!) cheaper than the Axiotron Modbook. The Modbook is not an official Apple product, and I doubt very much that Apple is concerned with whether or not their tablet bites into sales of the Axiotron. That said, the Modbook variety is probably a lot more tablet than Apple will offer. It will probably be more like a large iPhone-esque device than something that could beat the Mod pound for pound.
I can only imagine the sweet accessories that will come from a Mac Tablet. Nice leather bound carrying case, integrated stylus / folding keyboard. Welcome back, Newton!
10/16/09
10/16/09
That site has to just be a bottomless burn pit for dollars. #googlestock
10/16/09
The one money-maker they do have, though, is advertising. And apparently, it's a whopper. Which makes sense. Google gets tons of money each year from advertisers who enjoy their targeted, intelligent ads. Meanwhile, Google runs other services that boost their name and brand for pennies on the dollar of what they're ads bring in.
Good business isn't about minimizing losses, but maximizing gains. So long as they can keep up their superior ad targeting systems, they can burn through as much money as they have. And frequently do. #googlestock
10/16/09
If MS really did want to get a leg up rather than trying to drive Google into the ground, they'd be attempting to bridge the gap with Google and offering paid for time in their apps/sites - maybe even focus on great products rather than trying to take down your competitors. Then again, that'd be crazy. #googlestock
10/16/09
"By making your biggest products cash losers and your biggest money makers merely integrated into the product"
So they DO make money from their "cash losers" then??
"Essentially if someone like Microsoft actually does kill a free service of Google's they'll almost be doing them a favour."
Then how about their "biggest money makers merely integrated into the product" thing? It got killed too right?
The thing is, if some of Google's popular features die, most likely they're suffering bad rep like Yahoo and it'll severely affect they stock. #googlestock
10/16/09
yeah, but if the website(youtube) itself isn't bringing in any money at all, and they just take a loss on it, how is that good business? Even if other parts of google can pick up the slack for youtube it doesn't change the fact that youtube is a money pit.
just my opinion. I don't know how any of this stuff works haha. #googlestock
10/16/09
Let's say for my day job, I get paid $500/hour. Hey, I can dream can't I? Well, that amounts to $20k a week, or little over a million a year. On that kind of money, I can afford to pay for a nice house, all utilities, college tuition for the kids I probably have and still have some left over to sink into my dream DeLorean (If I'm gonna dream, I'm gonna make it rock). Sinking a few hundred to a thousand a week into that thing is hardly hurting my salary. It's a money pit, but it's one I can afford.
As another real world example, for the longest time, Sony was selling the Playstation 3 at a loss per unit. As in, every time you bought a PlayStation 3, Sony lost money, since it cost more to make them they were charging for it. Yet, they made enough profit on games and peripherals to more than make up for it. Nintendo has banked on this strategy for years, selling cheaper than average systems, and yanking money out of your nose through cheap plastic peripherals.
A single product can take a loss, even consistently, if the revenue streams of the company as a whole make up for it. Even if YouTube is losing money, until it threatens Google's huge ad revenue, it's existence is an asset....like as a place to put ads. ;-) #googlestock
10/17/09
Thus, even at launch every Wii unit sold made Nintendo money. And then Nintendo made even more money from all the games and addons.
10/17/09
The point is to not view any one product as an isolated revenue stream that must sustain itself. #googlestock
10/16/09
10/16/09
10/16/09
06/05/09
Here's my first draft at Apple analysis:
With the iPhone Apple as ben verysuccessful bcause theymade a phone that people wan to use and liek to use. If they can keep this up they will kick some ass!
OK- what do you think?
06/05/09
06/05/09
06/05/09
If I keep commenting on Gizmodo instead of working, I will run into problems.
06/05/09
I can only hope that he uses that line in other sectors.
If GM starts making cars people don't want, and starts losing buyers, then GM's strategy will run into problems.
If Madonna starts making albums people don't want, and starts losing listeners, then her strategy will run into problems.
If the GOP starts promoting political positions people don't want, and starts losing voters, then the Republicans' strategy will run into problems.
If the Church starts making dogma that people don't want, and starts losing worshippers, then the Church's strategy will run into problems.
06/05/09
Oh, wait, the number of followers I have doesn't make me money.
06/05/09
PS
GM has been doing it for years now.
06/05/09
Not funny.
06/05/09
06/05/09
06/05/09
You're totally off base guy, and I saw no such thing.
06/05/09
These are extraordinarily shallow observations. There is no insight to any of it. That quote, though, took the cake because it is so generic and so basic. If you make things and people want to buy them, then you will not succeed.
This isn't snarking. It's getting caught trying to foist pablum as something remotely insightful.
06/05/09
You know what is douchebaggery, though? Posting insulting comments about an editor's writing style on a free blog as if you were somehow cheated of the money you paid to visit the site.
06/05/09
"Apple has had a nice rally because they put up very strong numbers, and at the end of the day it will still be all about numbers."
Yes, Apple's stock has performed well because Apple's products have sold well. And, investors like to invest in companies whose products sell well.
06/05/09
06/05/09
06/05/09
06/05/09
06/05/09
06/05/09
I'M A BALLIPEDE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
LOOOOOOOOOOOOOOOOOOOOOOOOOOOOO...!!!!
06/05/09
06/05/09
05/21/09
Also, analysts just need to stfu.
05/21/09
05/21/09
05/21/09
05/21/09