Apple Inc. (AAPL) Points to Cost of Free with Google Inc

Apple Inc. (NASDAQ:AAPL) has a plan, and it dropped a hint at the WWDC 2015, that undoing Google Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) is part of the plan. To undercut Google, Apple is driving on the highway of privacy, an area where Google looks vulnerable.

During the WWDC keynote, Apple almost made it look like it can do to Google what the European Commission is struggling to do – clip Google’s monopoly practice. Beyond helping the European antitrust agency cut Google down to size, Apple also looks set to get revenge on Google for what it did to Microsoft Corporation (NASDAQ:MSFT).

By attacking Google’s privacy practice, Apple is aiming where it hurts the most, putting both Google’s public perception and profits at risk.

Free offerings

Microsoft drove its competitive edge on the highway of giving away products almost for free to encourage adoption. The company bundled a lot of tools into Office and sold it at the price of a single product. It also enriched Windows with features that other providers sold separately.

Google tapped into Microsoft’s strategy of giving away products for free with offerings like Gmail and Google Doc. Apple is taking the very same approach, but unlike Google, it is telling users that their personal information won’t be sold for a profit, and that is where the trouble lies for Google.

Apple can afford to make such damaging claims against Google because, after all, it makes most of its profits selling hardware, while Google depends on search revenue.

The Hidden Cost of Free

Apple’s strategy is not unique. Microsoft previously chose to highlight Google’s ways in their campaign “Scroogled.” Many users are unaware of the cost of free with Google and how the search engine giant uses your data. Users have become so accustom to free services on the internet that they don’t consider the cost of their privacy and how these free services are powered.

Artificial intelligence

WWDC 2015 was the event where Apple introduced various captivating features, including Intelligence, a more advanced digital assistant tool. Intelligence is able to turn up more accurate and relevant search and prediction results faster. The company also introduced touch-prediction for iPhones and iPads, a clever way to speed up opening of apps. On the multimedia side, Apple had picture-to-picture, a feature that enables you to resize videos to the background as you reply to that text message on your phone.

Artificial intelligence is one area Google Inc (NASDAQ:GOOGL) has been able to open a wide gap between it and Apple. However, WWDC left no doubt that Apple is out to give Google a run for its money on the AI front.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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