Google Difficulties and Prospects of Development
The financial results in the first quarter of 2013 for Google received a mixed reaction among investors, but the company’s shares still rose 2% after they are announced publically. Google Revenues were slightly lower than the expectation, and profit – rose a little bit higher (but Only Because of the large Tax Breaks from the government for research and development).
Results of operations, however, showed that the company’s search business is still doing well, despite the fact that the growth of desktop search and advertising slows down due to the transition of many users on mobile devices, which Google is not so successful in raising money, so they are now expected to work in that field to cover the downfall according to the expectations.
In order to meet the growing market threats, Google invests in cutting-edge areas of Business after the launch of Google Glass and Google Shoes such as wearable computers and cars with autopilot facility. It is worth noting that Google CEO Larry Page (Larry Page) during a conference call with Analysts Devoted many of similar words importance for the Google project.
“For the CEO is Critical concentration for the future, – said Mr. Page. – Companies are committed to A comfortable Existence in A field Which has always Been, with Minor Modifications for A while. It is quite Natural to try to work with What is familiar. But incremental improvements – A guarantee That the company Will Become Obsolete with the passage of time, this is true Especially in the Technology field. “
Mr. Page, seems to be able to convince Analysts and Investors, many of whom had previously feared that Google is spending on efforts Science Fiction Projects. “All of this is losing money and Only Public Attention – said analyst Colin Gillis (Colin Gillis) of BGC Partners on New Business lines of Google. – But I like the Fact That They Design These Things. When you Look at Apple, then one wonders About the next stage of growth. When you Look at Google, you can See That the company is committed to a major new markets.”
Despite the difficulties in monetizing Google’s Mobile Business, Investors are Moving away from Apple in favor of the Search giant. Over the Past Year, Google’s Android stock rose 26%, and Apple – have fallen by 36% due to the slowdown and competition from Google Android. Analysts believe that Apple is not strong enough to change the game of technology competition.
Google delivered the first batch of its Points to Developers this Week setting a course of action for upcoming year, and hopes to begin selling a good number of products to the users at the end of the Year 2013. In addition, the company is expanding its network of High-Speed Fiber optic Internet to some New Cities and some major States in the US. There are rumors still available about work being going on regarding Wearable Computer-Clock.
Google highly aims to solve the problems of Mobile Advertising. Now, Advertisers are now preferring to buy marketing and advertising packages according to the web standards for smartphones and tablets instead of purchasing advertising for Desktop PCs.
This new working will take full advantage and effect will work most probably in July 2013, but due to the cost of Mobile Advertising will grow because of such an increase demand to accomplish the project as soon as possible. Analysts are commenting on the situation by saying that Google will fix the problems, but at the expense of Advertisers, now this is going to be a strong statement for Google to be notified and work accordingly with a smooth and good strategy.
Another difficulty is the Google Motorola Mobility, which continues to cause damage (in the quarter, they made $271 million USD). This can be corrected by the Launch of New course of attractive smartphones and tablets. Incidents may be noticed while Any Smartphone, Android, Apple, Samsung or HTC etc to fall and some of the functionality got damaged like screen got blank, sensors got damaged, phone restarts or malfunctionings etc. But Google promises to deliver Small Devices with a Standard Android-Environment, Long Battery Life and most importantly Shock Protection.