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

Apple's Problem Isn't Cosmetics, It's Google

In the bigger picture, though, for Apple to focus on changing the icon colors is like rearranging the deck chairs on the Titanic -- almost literally. Apple has hit an iceberg, and it's losing water -- fast.

The name of this iceberg? Google (GOOG - Get Report).

Google, together with a long list of hardware partners -- Samsung, Asus, Acer, HTC, Sony (SNE), Lenovo (LNVGY), ZTE, Huawei, Motorola and many more -- are attacking Apple like hyenas bite into a gnu. They're doing it through lower prices, improved hardware, and better services.

Let's examine those in turn:

1. Lower prices:

First, hardware: Apple laptops start at $1,000; Google laptops start at $200. Apple tablets start at $330; Google tablets start at $200. Apple's iPhone 5 smartphone starts at $649; Google's equivalent Nexus 4 starts at $349.

Components: Apple now makes (aka engineers) its own CPUs. Google and its partners work with Intel (INTC), Nvidia (NVDA), Qualcomm (QCOM), Samsung and Broadcom (BRCM) for CPUs. Yes, I know, Apple uses some of those, too, for selected lower-value/importance parts.

Second, software: Google offers more cloud services, and they are free. Google gives you 15 gigs of storage just for creating an account. Google gives you 100 gigs of storage for buying a $250 laptop, and 1 terabyte for buying a $1,300 laptop. Apple could charge you $50 per month for something like that.

2. Improved hardware:

Whether smartphones, tablets or smartphones, it is absolutely true that Apple had superior hardware on most fronts until a year or two ago. Android was laggy, had poor battery life,and Google's first laptops were slow.

So where are we now?

Smartphone: Almost everyone agrees that all the high-end Android smartphones are ahead of the iPhone in terms of the hardware experience. They have bigger screens, bigger batteries, and expandable storage, among other things.

Tablet: Whatever advantage Apple had in the early days has largely been eradicated. I could argue that most tablets are now the same, but Android invents more in terms of form factors, optional stylus, and so forth. In either case, and equivalent Android tablets tends to sell for $100 less than the iPad.

Laptop: Obviously, Google started out by focusing on $200-$450 laptops, but they are no longer too slow for their basic tasks. As for the high end, the $1,300 Google Pixel is starting to address the high-resolution (2560x1700) touchscreen laptops built with the tightest quality standards.
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
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 $94.51 0.52%
GOOG $681.12 -0.36%
FB $101.97 -2.00%
TSLA $155.71 -4.20%
YHOO $27.34 -2.30%


Chart of I:DJI
DOW 15,942.06 -262.91 -1.62%
S&P 500 1,847.49 -32.56 -1.73%
NASDAQ 4,270.8770 -92.2670 -2.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs