This Day On The Street
Continue to site
ADVERTISEMENT
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

Google's Nexus 5: What to Expect

NEW YORK ( TheStreet) -- In the last couple of weeks, the first customers of Google's (GOOG - Get Report) iconic Nexus 4 -- made by LG (LGL) -- have taken delivery of this long-anticipated smartphone. According to Google's web site, the wait if you order one now is five weeks.

So what does this mean, now that the Nexus 4 has just hit the market?

Time to speculate about the Nexus 5, of course!

But first: A little bit of history and background:

HTC made the first Nexus, then Samsung made the next Nexus devices and now LG is making the Nexus 4. They were typically released in the October-January timeframe, once a year.

Let's make one stipulation, just off the bat: In my opinion, the Nexus 4 made by LG is essentially unchanged from its predecessor, the Galaxy Nexus made by Samsung. Yes, I know it's got a better camera, and the battery isn't removable -- but essentially, it really did not move the hardware ball forward materially.

The one area that will eventually prove useful was the change in CPU (the main computer processor) -- from one made by Texas Instruments (TI) to a more powerful one made by Qualcomm (QCOM). Over time, the headroom provided by this new faster CPU will likely provide some benefit -- once the software has caught up.

As it stands, however, the improvement in CPU performance is a little bit like buying the Porsche Carrera S instead of the regular base Carrera. No normal person can tell the difference in performance, because the base model is already plenty fast enough.

So here is conclusion number 1: If you already have the Galaxy Nexus, which became available a year ago, there is in my opinion no reason to upgrade to the Nexus 4. One year passed, and essentially all the progress was in terms of the Android operating system (going from 4.0 to 4.1 and now 4.2) and in Google's ever-improving, all-encompassing, and generally superior cloud services. Not the hardware.

In other words, we have mostly hit a bit of a smartphone hardware wall. The hardware doesn't really need to become more capable. What is needed with the hardware is to make it less expensive to manufacture. One way to cut this kind of cost is to simplify the hardware. That's different than increasing its capabilities.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GOOG $523.40 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs