This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Google's Strategy: Look Like Apple

Stocks in this article: GOOG MMI AAPL RIMM HPQ MSFT NOK DELL

Why are people unhappy with Android? The complaints range from battery life to lack of customer support. Every single Android I have tested has abysmal battery life, and the support from the wireless carriers is viewed by most people as deeply inferior to the friendly approach and replacement policies of the Apple store.

Techies and geeks mostly like Android, but most people are not techies and geeks. As a result, the percentage of people who bought Android over the last 18 or so months are looking to switch to Apple and others over the next six months appears large.

Something had to give. Google could have continued on its current path, probably with much more success still. But in the eyes of the consumer, it would not approach Apple in terms of being a consistent experience with superior service and cradle-to-grave comfort.

People say: "But what about Google's relationship with its Android licensees, such as Samsung, LG, HTC, SonyEricsson and many others?"

Here is the cold answer: Too bad. Of course Google wants to maintain as many active Android licensees as possible, to help it dominate the ecosystem. It would never kick anyone out, like Apple did with its Mac licensees in the mid-1990s.

This was a hard choice for Google. It now almost inevitably risks alienating its Android licensees. Nobody will admit this, near term, of course. Google has no incentive to do it, ever, for all sorts of reasons, least of all anti-trust. Licensees such as Samsung, HTC, LG and others are now caught with their pants down, and have to keep up a smiling face while they figure out what to do over the long run.

Remember, there is no near-term panic here. We don't even know if the Motorola deal will close. But assuming that it does, the clock is ticking for the Android licensees.

I wrote an article on May 20, 2011, that Samsung is building its own high-end operating system to compete with Google's Android, and that it will be launched in 2012.

Clearly, Samsung saw this otherwise surprising move by Google coming already.

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs