Two recent articles in Forbes.com speculated on the future of Apple and Google – the two darlings of the investing world.

Today’s article on Apple looked into its market valuation based on the high Price/Sales ratio, which drives its unique pattern of fast growth immediately after launching a new product, followed by a period of normalcy until the next new product comes along.

The author questions the sustainability of such growth for long, considering that new products are often only upgrades of the original:

Bear in mind that for several years now, Apple’s growth has really come from what are essentially line extensions on just one product, the initial iPhone. With all due respect to Steve Jobs as an innovator, how many more times can he mount the big stage, tap icons and re-size pictures by flicking his finger while preaching world domination, before it becomes white noise? Ultimately, how many more 50%-plus sales growth rates are in Apple’s future?

I am not too concerned about Apple’s product line though. A company whose growth bounces between spectacular and normal is doing fine in my book. But, one issue that may have a serious bearing on Apple’s management in the near future, relates to Steve Jobs’ health concerns, and speculations about a possible CEO succession.

Uncertainties arising from CEO change is the topic of the other article on Google, which discusses co-founder Larry Page replacing Eric Schmidt as Google CEO in the next two weeks. The author talks about Page’s lack of PR skills that may seriously affect Google’s ongoing love affair with its investors:

I think he and Google investors are in for a rude awakening.  The next 6 months are bound to be bumpy for him as he figures out what’s required from a CEO. For that reason, I wouldn’t touch the stock until at least October.

Read the Forbes articles on Apple and Google.

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