Apple (AAPL), Google (GOOG), Amazon.com (AMZN): Walled Gardens?

A “walled garden” concept in the technology sector is not an old idea – America Online, also known as AOL, Inc. (NYSE:AOL), tried the concept in the 1990s with much resistance from Internet policy advisors and experts – but it is one that is becoming more popular among giants in the much more competitive marketplace than in the AOL hey day of 15 years ago. In this case, we are talking about the ecosystems being designed by Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG) and Amazon.com Inc (NASDAQ:AMZN).

Should this Concern Apple Inc. (AAPL) and Google Inc (GOOG)?

These three companies are at the forefront of the tech world in terms of developing ecosystems that essentially provideso many services and devicces to consumers that they want to develop such a strong brand loyalty that consumers can rely on their one company of choice for everything. We’re talkin about tablet computers, digital music, streaming video, gaming and even e-commerce as a whole. Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG) and Amazon.com Inc (NASDAQ:AMZN) have all been working very hard to develop their own sovereign “walled gardens” but have done so in seemingly different ways – Apple through the development of its iDevices, Google through its Search and online advertising and Amazon.com through its e-commerce marketplace – but are looking to get to the same place of being a one-stop shop for consumers – developing a nearly blind loyalty to the brand to ensure a certain level of sales for the bottom line every quarter. And to a certain extent, Microsoft Corporation (NASDAQ:MSFT) is also joining the fray with the introduction of its Surface tablet to go along with its music, video and gaming options through Xbox and affiliated services and subscriptions.

But does this concept of a “walled garden” – a tech sovereignty where customers would never have to leave a brand to get all their wants and needs met – good for innovation and thus good for the customer? Some experts beleive that having a siloed ecosystem controlled by one company can be detrimental to a free internet for everyone. “If someone else controls the distribution of your work and the pricing, then you don’t have a company, you have an affiliate,” said Brewster Kahle of the Internet Archive, a nonprofit digital library. If the goal is a free and open market for all tech companies, “you won’t get there from here,” he said. “But if you want it to be a mall, we’re well on the way.”

But should a few companies – Apple inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG) and Amazon.com inc (NASDAQ:AMZN) get to dictate what companies get into the “mall”? For example, many companies apply apps for submission into the various app marketplaces, and their work and ability to reach the marketplace is subject to the review of the companies running the marketplace.

Is this what consumers want as far as choice? Does this “wallend garden” concept inhibit or encourage innovation among tech companies? Give us your feedback, and tell us what you think about these companies and how these “walled gardens” contribute to the bottom line for investors in these companies – like billionaires David Einhorn of Greenlight Capital, Julian Robertson of Tiger Management and Jim Chanos of Kynikos, among others?

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!