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With the introduction of the World Wide Web in 1991, it transformed the internet from a network of interconnected computers into an information system using that network. In the past three decades, a handful of digital companies have established a foundation to dominate internet services and rise to the top of the list of the world’s most valuable companies.
Illustration by The Geostrata
The world’s most valuable companies, like Alphabet (Google), Apple, Amazon, Microsoft, and Meta (Facebook), have risen so much that today they are commonly called “Big Tech."
Today, big tech companies are everywhere in people’s lives and in the world economy. The term “Big Tech” describes a set of multinational corporations that have come to dominate the communication and information technology industries.
These companies control the entire economy, establishing the rules for people, businesses, and sometimes even public services.
Today’s big tech companies have grown by focusing on expansion and scale at all costs under a “winner takes it all” mindset. They have relied on and exploited “network effects” and massive data collection to ensure an extensive network of consumers have no choice but to use their products. By doing so, they have developed their dominance.
They provide and control the means for various communities to interact. For example, Facebook acts as the middleman between social media users and advertisers; Apple connects iPhone users and app developers; and Amazon links retailers and online shoppers.
Clearly, Big Tech has emerged on top.
Apple controls 55% of the USA's smartphone sales, and the Apple Store has 2.18 million apps to download for those iPhones.
Microsoft controls 70% of the world’s computer operating systems, with 6 billion computers running Windows.
Alphabet’s Android mobile operating system controls a 71% share of the global smartphone market, while 92% of all search queries are performed on Google.
Amazon has 39% of the USA’s e-commerce market, delivering over 4.75 billion packages per year in the USA.
Meta’s platforms (Facebook, Instagram, WhatsApp, and Messenger) each have over one billion users, with 77% of global internet users using at least one Meta product.
HOW DO BIG TECH COMPANIES DOMINATE GLOBAL MARKETS?
Apple: It would be impossible to discuss major technology without mentioning Apple. When it comes to sales, profit, investments, and users, Apple is among the largest firms.
A tech leader now exists from what was once a small company founded by two intelligent but unemployed college grads. In addition, he made a substantial contribution to a great deal of the cutting-edge technology that astounds us today.
Since it introduced new high-tech lines around the globe, Apple has significantly altered the way we use phones and computers. Apple has many justifications to dominate the charts in numerous areas.
It has more than a billion users worldwide as of right now. Furthermore, it has surpassed all previous records for the largest net worth of a tech business, with a valuation of $2 trillion.
The business quickly rose to prominence when it entered the wearables and Internet of Things (IoT) space with products like Apple watches. Furthermore, Apple services like Apple Music and TV are achieving remarkable growth and accomplishments.
Alphabet (Google)- To begin with, Google owns the largest search engine on the internet and accounts for more than 90% of all searches worldwide.
In addition, Google is the proud owner of a long and diverse array of services that are used on a daily basis by users worldwide, including Meet, Google Docs, Google Maps, Gmail, and many more.
Along with its popular tech services, Google began to venture into the tech product industry with its Pixel line of smartphones and tablets, Wear OS wearables, and smart home appliances.
With around $300 billion in revenue, Alphabet Inc., the parent company of Google, is valued at 1.4 trillion dollars as of this year.
Nvidia: Around the globe, only four businesses are valued at more than $2 trillion. As of 2024, Nvidia will join Apple, Microsoft, Saudi Aramco, and the oil giant. It makes sense if the name is unfamiliar to you.
Unlike Apple, the corporation doesn't precisely produce a shiny product that you can hold all day. A chip that Nvidia designs is tucked away deep within a computer's intricate internal workings; it appears to be a niche product, but more people depend on it every day.
Meta: Founded as Facebook Inc. somewhere between 2004 and 2005, Meta Inc. is a leader in social media and communication. Facebook is currently the most popular social media network worldwide, with over 3 billion active users. Over time, this extraordinary success inspired Zuckerberg and his partners to push the boundaries and explore areas beyond communication.
For this reason, they changed their name to Meta Inc. in 2021 and declared that they would concentrate on a variety of businesses and areas, including virtual reality, artificial intelligence, and many other things that may improve communication.
They also unveiled the metaverse, an entirely virtual world where people can invest, live, and connect. Needless to say, this announcement caused a stir around the globe.
Microsoft: In the middle of the 1970s, Bill Gates and Paul Allen founded Microsoft. They actually had a brief cooperation in the beginning and focused on IT companies like IBM.
But eventually, both founders made the decision to focus on developing their product, and they successfully unveiled Windows, a significant advancement. More Windows versions, such as Vista and XP, followed, selling millions of copies and being utilized by numerous large enterprises, setting off an unending spiral of success.
Additionally, Microsoft produced Azure, its most recent invention. Microsoft has also had a significant impact on the cloud computing services market. Azure is popular with both consumers and organisations because of its vast list of services and dependability. The business is also well-known for a wide range of goods and services, including Xbox, Office, Teams, and the well-known 360.
Microsoft is valued at 2.36 trillion dollars and had over $200 billion in revenue as of 2023.
Similar to oil in the 18th century, data is a vast and underutilised resource in the 21st century. Similar to oil, those who recognise the intrinsic worth of data and acquire the skills to extract and utilise it stand to gain greatly.
In the current digital economy, data is more important than ever. It's essential to the efficient operation of every organisation, including local businesses and the government. Without it, things would not get done.
AI is used by e-commerce retailers to forecast customer preferences and wants with a level of accuracy that some find frightening. Major social networks employ similar tools to target individuals with specific content and advertisements.
Artificial intelligence has applications in the fields of health care, bioscience, industry, government, and the military—anywhere rapid processing, analysis, and action on massive volumes of data are required.
The semiconductor business will earn the most from providing compute, memory, and networking solutions, but storage will experience the greatest growth. Semiconductor chip demand will follow the AI market's explosive growth.
By 2025, the worldwide AI industry is expected to have grown to $390.9 billion, a compound annual growth rate of 55.6 per cent. Every artificial intelligence application is built on hardware.
BY SHIVAM RAJPUT
TEAM GEOSTRATA
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Important analysis
very insightful!