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

Why the Facebook Phone Is so Good for Google

Android was already catching up on iOS over the past year. One year ago, it was almost always the case that the hottest new apps became available on iOS first. Now, iOS may still have a lead, but it is slight. Zuckerberg's endorsement of Android is like to push Android over the top in Silicon Valley's developer community.

I spent the past few days talking to developers in Silicon Valley, where the vast majority of the hottest app companies are based. I couldn't find a single one who disagree with the assertion that Android is gaining on iOS in the developer community, and is likely racing ahead imminently.

Developer support is the oxygen the drives an ecosystem. The Facebook phone just injected Android with critical oxygen, sucked right out of Apple's ecosystem. This is a huge deal, and it doesn't matter whether the Facebook phone itself turns out to be a success or not.

2. Let's assume the Facebook phone is a success.

OK, let's assume people actually want this thing. This could either be the optimized phone, made by HTC, or just the new app, which you can download from Google Play. Let's start with people just starting to use it. What happens now?

The first and most important thing you must realize is that 100% of these people are now departing Apple in favor of Android. One hundred percent. Whatever Google gets or doesn't get, one thing is a stone-cold truth: The Facebook phone experience means you're no longer using Apple. Apple does not get one more penny from these people, ever. Good-bye.

I can't emphasize that enough: For every person Facebook captures, it's one person Apple doesn't get, or outright loses. Facebook has just become Apple's worst enemy.

3. What happens after people start using the Facebook phone?

Once people have either bought the Facebook phone, or downloaded the Facebook phone software, there are three factors we need to consider:

A. Do people like the experience?

B. How much do they use the Facebook phone software?

C. How will Facebook monetize this situation?

Let's deal with these in turn:

A. Will people like the Facebook phone experience?
2 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
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
FB $87.28 0.43%
GOOG $523.40 0.30%
AAPL $126.44 -0.13%
TSLA $280.02 4.04%
YHOO $39.38 0.13%

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