This Day On The Street
Continue to site
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

The Plot to Dethrone Android

NEW YORK ( TheStreet) -- Call 911! Senior executives are meeting, right now, in a smoke-filled room, plotting to take down Android.

I think they will ultimately fail, but not without perhaps inflicting some superficial wounds on their intended target.

And guess what? The following companies aren't in the room: Apple (AAPL - Get Report), Microsoft (MSFT - Get Report) and BlackBerry (BBRY).

What am I talking about? And who?

To understand the scene at the 2013 version of "The Last Supper" you have to understand the logic and chronology of how the smartphone history developed over the last 15 years:

In the early 1990s days, we had Nokia (NOK), which was eclipsed in the early 2000s by BlackBerry.

The wireless operators were extremely happy with BlackBerry, partially because BlackBerry didn't pose a threat to them. It shared revenue, expanded the market into the lucrative enterprise sphere, and didn't divert existing operator services.

BlackBerry co-CEO Jim Balsille described his relationship with the wireless operators as "constructive alignment" because he emphasized that BlackBerry was the chief ally of the operators -- not a threat. All parties -- BlackBerry as well as the operators -- loved this arrangement and wanted it to continue forever.

Minor threats such as Palm were swatted off like flies. The years between 2003 and 2007 were all sweetness, light and jingles for the wireless operators and for BlackBerry.

Then came the iPhone stink bomb. Steve Jobs was the opposite of Jim Balsille's "constructive alignment." It was Jobs' way or the highway. Any operator carrying the iPhone had to comply with every millimeter of Apple's wishes. No logo on the device, no crapware apps, no nothing. Great for the consumer; bad for the operators.

Apple was confident that it had a product the operators wouldn't be able to ignore, even though they hated it. All Apple needed was a crack in the Hoover Dam of the operator wall. With AT&T (T) hungry to take down Verizon Wireless from the U.S. market leadership position, Apple got its opening.

Apple and AT&T milked this for all it was worth, and Verizon felt compelled to respond with desperate measures. Verizon went to BlackBerry for an all-touch version called Storm, which became a total disaster. It also licensed the "Droid" name from Lucas Films and agreed to promote Android heavily as its answer to the iPhone.

Android was free and customizable, so the operators -- not only Verizon -- proceeded to promote it as their favored solution, trying to keep Apple away from total industry dominance.
1 of 3

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.69 -0.59%
GOOG $711.11 1.40%
MSFT $50.39 0.90%
FB $119.49 1.40%
TSLA $214.84 1.60%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs