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Apple Inc. (AAPL) Draws Closer to Microsoft, but Google Inc (GOOG) Leaves Both in the Dust

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Surprise, surprise!

Gartner Inc (NYSE:IT)‘s latest forecast points to continued pain for the PC industry. Including “ultramobiles,” which the firm defines as Google Inc (NASDAQ:GOOG) Chromebooks, PC Ultrabooks, or hybrid convertible devices running Microsoft Corporation (NASDAQ:MSFT) Windows 8, worldwide “PC” shipments are expected to decline by 7.3% in 2013, but should post a 1% gain in 2014. To achieve growth in 2014, ultramobile shipments are expected to grow by 96.2% and traditional desk-based and notebooks PCs should decline by another 5.2%. In other words, the appetite for highly portable PCs is expected to be robust, but will come at the expense of more “clunky” PC designs.

Once also taking into account for smartphones and tablets, the entire computing device outlook looks promising. Combined, worldwide computing device shipments are expected to grow by 5.9% this year and by another 6.7% by the end of 2014 as the world continues to embrace the mobile computing revolution.

Apple Inc. (NASDAQ:AAPL)Mr. Softy blues
Perhaps the most surprising development out of this forecast is how Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) are expected to be neck and neck in terms of device shipments by the end of 2014. At that time, it’s expected that Apple will have shipped a combined 354.9 million iOS and Mac devices and Microsoft will account for 378.1 million devices that run Windows. The storyline is all too familiar: Microsoft continues to lose its computing dominance to players that have more effectively addressed the worldwide shift to mobile computing.

Units matter
As exciting as it is for Apple Inc. (NASDAQ:AAPL) to have the opportunity to surpass archenemy Microsoft Corporation (NASDAQ:MSFT), it’s a small victory in the grand scheme of things. Let’s not forget we live in a world where over 2 billion computing devices ship on a worldwide basis each year. Guess which company is claiming the biggest stake? Google Inc (NASDAQ:GOOG).

Gartner Inc (NYSE:IT) expects Google Android will ship on over 866 million devices this year and well over a billion devices by the end of 2014. Naysayers will immediately dismiss Google Android since Apple Inc. (NASDAQ:AAPL) “controls the majority of smartphone profits.” If you fall into this camp, please be reminded that Android expands the usage of Google Inc (NASDAQ:GOOG)’s lucrative search business. Last October, Google CEO Larry Page announced that mobile has become an $8 billion a year business, which represented an increase of 220% from the previous year. Considering the continued growth of Android devices since October, it’s all but certain mobile is worth even more to Google. Additionally, Google makes money regardless of ecosystem or form factor, provided users continue utilizing Google Search.

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