Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Malatsi withdraws AI policy after fictitious sources scandal - Solly Malatsi

      Malatsi withdraws AI policy after fictitious sources scandal

      26 April 2026
      How AI could quietly hollow out South Africa's job market

      How AI could quietly hollow out South Africa’s job market

      26 April 2026
      SpaceX bets the rocket farm on AI

      SpaceX bets the rocket farm on AI

      26 April 2026
      Withdraw AI policy, Malatsi told as fake citations row grows - Solly Malatsi

      Withdraw AI policy, Malatsi told, as fake citations row grows

      26 April 2026
      The remarkable turnaround at Intel

      The remarkable turnaround at Intel

      26 April 2026
    • World
      More organic compounds detected on Mars - Nasa Curiosity rover

      More organic compounds detected on Mars

      21 April 2026
      Adobe bets on AI agents to fend off cheaper rivals

      Adobe bets on AI agents to fend off cheaper rivals

      16 April 2026
      Google poised to lose ad crown to Meta

      Google poised to lose ad crown to Meta

      14 April 2026
      Grand Theft Data - hackers hit Rockstar Games - Grand Theft Auto

      Grand Theft Data – hackers hit Rockstar Games

      14 April 2026
      UK PM Keir Starmer declares war on doomscrolling

      UK PM Keir Starmer declares war on doomscrolling

      13 April 2026
    • In-depth
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      The R18-billion tech giant hiding in plain sight - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
    • TCS

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
      TCS | Donovan Marsh on AI and the future of filmmaking

      TCS | Donovan Marsh on AI and the future of filmmaking

      7 April 2026
      TCS+ | Vodacom Business moves to crack the SME tech gap - Andrew Fulton, Sannesh Beharie

      TCS+ | Vodacom Business moves to crack the SME tech gap

      7 April 2026
      TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

      TCS | MTN’s Divyesh Joshi on the strategy behind Pi

      1 April 2026
    • Opinion
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      R230-million in the bag for Endeavor's third Harvest Fund - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Your life savings, one tech investment

    Your life savings, one tech investment

    By The Conversation2 March 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    money-640

    I’ve designed a mind experiment. If I had to invest all my savings in a single company, and had to choose either Apple, Google (now Alphabet) or Facebook, which one would it be? I would not be able to move my money for at least 10 years; it would be a long-term investment with high stakes.

    Portfolio investing or index tracking is out of the question for this experiment.

    The choice is by no means clear. They are all extremely successful companies that have impacted the way we live. They all operate in different but related sectors within the tech universe. In terms of annual revenues, Apple is at US$233bn with a growth rate of 28% over the previous year. Google is at $66bn with 19% growth, and Facebook at $18bn with 44% growth.

    In terms of net profit margins, all three have healthy returns at rates between 20% and 23%. In terms of market capitalisation, Google and Apple have been competing for the top spot. In mid-February 2016, Apple was worth $532bn, Google $495bn and Facebook $307bn. All three are led by senior management teams that are exceptional and committed. In Google and Facebook’s case, the founders are still there. If Steve Jobs had not passed prematurely in 2011, no doubt he would also still be at Apple.

    Differentiating giants

    How then to make the decision of which company to put one’s life savings in? Clearly, market cap is important, but fickle. Revenue growth is important, and Facebook has the highest growth rate, albeit from a lower base at slightly more than a quarter of Google’s revenues, and about one thirteenth of Apple’s revenues.

    How about if we ask, which company faces the highest strategic risks in terms of competitive pressures, and in terms of dependence of its success on a narrow part of its offerings?

    On this score, Apple seems to qualify. Its success is highly dependent on the iPhone, and if it wasn’t for its integrated ecosystem approach (the bundling of media content, apps and consumer electronics) as well as its design brilliance and brand value, copycats would be taking a much bigger chunk out of its pie. Having said that, Apple successfully commands a premium price for its offerings, which implies real differentiation. It also has huge growth potential in emerging markets.

    And even though its Apple Watch was not such a big hit as had been hoped, other future offerings could be. After all, Apple has a record of redefining industries with products that people actually want to use and have fun using.

    Facebook has moderately diversified its offerings and investments by acquisitions such as Instagram, WhatsApp and Oculus, and has built relationships and shared its platforms with thousands of app developers. So far there do not appear to be other social networks that have become serious competitors (LinkedIn operates in the professional space for example, and Facebook has already acquired Instagram).

    Facebook benefits from positive network effects — the more people in its network, the stronger it becomes and the bigger the barriers for competitors. Yet, it is not inconceivable that niche social networks may grow and collectively take market share from Facebook, or competitors from emerging markets progressively moving in to gain users from more developed markets. At a more fundamental level, there is a risk that the next generation may begin to see Facebook as their parents’ social network and seek new alternatives.

    google-640

    Google appears to be the most healthily diversified company, with offerings both in areas related to its traditional search business, such as YouTube, Android, Ads, maps, cloud services, chrome, some hardware, as well as its “other bets”, experimental businesses at the frontiers of technology.

    Google bets include investments in life sciences, self-driving cars, healthcare, media content distribution and venture capital. These emerging businesses have collectively lost money (US$3.6 billion in 2015), yet they are Google’s way of identifying the next big thing, proactively seeking to capitalise on societal and technological trends. Google’s strategic risk from competitors in its core businesses is still significant, but comparatively lower than that of Apple.

    The verdict

    These are all exceptional companies. However, I still need to answer the question I’ve set myself.
    Given strategic risks and the balance between prospering from the current business as well as exploring new avenues for the future, if I had to rank these three companies in terms of their likelihood to be around and prosperous in 10 years, here’s my ranking: Google would be top, closely followed by Apple, closely followed by Facebook.

    The decision is not easy, and no doubt there will be a variety of perspectives on this. But this is what makes business and competition exciting. Nobody knows the future and in the meantime there might well emerge a new technology giant that somehow escapes acquisition by the big boys and grows to become the new market leader.The Conversation

    • Loizos Heracleous is professor of strategy, University of Warwick
    • This article was originally published on The Conversation
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Apple Facebook Google Loizos Heracleous
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEconomic crime in SA at ‘pandemic level’
    Next Article How Africa could leapfrog fossil fuels

    Related Posts

    SpaceX bets the rocket farm on AI

    SpaceX bets the rocket farm on AI

    26 April 2026
    Middle-class South Africa is ditching streaming for AI

    Middle-class South Africa is ditching streaming for AI

    23 April 2026
    The AI agent race is on - and Google wants to win it - Sundar Pichai

    The AI agent race is on – and Google wants to win it

    22 April 2026
    Company News
    Cybersecurity in the age of AI: why speed and trust now define resilience - iqbusiness

    Cybersecurity in the AI age: speed and trust define resilience

    24 April 2026
    Security by design is the channel's strongest pitch - Othelo Vieira

    Security by design is the channel’s strongest pitch

    23 April 2026
    Your brand is invisible to the AI that's choosing your competitor - Michelle Losco

    Your brand is invisible to the AI that’s choosing your competitor

    23 April 2026
    Opinion
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Malatsi withdraws AI policy after fictitious sources scandal - Solly Malatsi

    Malatsi withdraws AI policy after fictitious sources scandal

    26 April 2026
    How AI could quietly hollow out South Africa's job market

    How AI could quietly hollow out South Africa’s job market

    26 April 2026
    SpaceX bets the rocket farm on AI

    SpaceX bets the rocket farm on AI

    26 April 2026
    Withdraw AI policy, Malatsi told as fake citations row grows - Solly Malatsi

    Withdraw AI policy, Malatsi told, as fake citations row grows

    26 April 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}