It's hard to believe that Google was the more valuable company from the time of its IPO in 2004 until April 2008. Then iPhone madness began.
Google's latest rise versus Apple began in July. From that point through the end of 2015, its shares soared 44 percent, while Apple's sank 16 percent.
Apple's main problem is its reliance on the iPhone, which now accounts for two-thirds of revenue. It's a massive business, but sales in the fiscal first quarter increased only 1 percent from a year earlier, while iPad and Mac revenue dropped. Investors are concerned that unless Apple changes course and decides to compete with lower cost Android manufacturers on price, the iPhone's best days are in the past.
Meanwhile, Google is convincing investors that in the transition from Web to mobile it will maintain its dominance. According to eMarketer, Google is poised to capture 32 percent of the mobile ad market this year and next, staying well ahead of Facebook, which is around 20 percent. The company generates so much profit from its digital ad business that it can invest in all sorts of potential growth areas, namely autonomous driving and extending life.