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
TheStreet Open House

Google Exposes Apple's Overpriced Lock-Ins

NEW YORK ( TheStreet) -- What do you say when one restaurant charges $6 for a Coca-Cola, while the one next door charges $2? I call that a rip-off.

Lately, Google (GOOG) has exposed Apple (AAPL - Get Report) as the company charging you $6 for a Coke every step of the way. Let's count the ways:

1. Device storage.

When you buy an iPad or iPhone, you have to pay $100 extra to go from 16 gig storage to 32 gig. How much does Google charge for the same storage bump in their equivalent devices?

The Nexus 7 is $40 more for 32 gig vs. 16 gig. The Motorola X is $50 more for the same. In other words, Google is between 50% and 60% cheaper than Apple for the exact same thing.

2. LTE on the tablet.

Apple charges $130 extra for LTE on the iPad. Google charges $80 more. That's 38% less.

But wait, there's more!

Google's LTE version -- on the Nexus 7 - is a single SKU that enables you to switch between LTE on AT&T (T), Verizon (VZ)and T-Mobile (TMUS), simply by swapping your pre-paid SIM card. With Apple, if you buy an iPad on Verizon, you can only get LTE on Verizon, and so forth with a separate version for AT&T, etc.

You get the point - the iPad locks you to LTE on only one of the U.S. carriers.

3. Cell phone service pricing.

If you want a reasonable package from AT&T or Verizon, you pay $90 a month for voice, data and SMS. Same thing with Android.

You can get less expensive service with T-Mobile and Sprint (S), knocking off approximately $20 a month in comparisons that are not 100% oranges vs. oranges, but close enough. Same thing with Android.

So far, so good -- for Apple. But then we go to even lower tiers:

With Republic Wireless -- which works on Sprint -- you can get unlimited service for $19 a month. You have to buy an Android phone for $259 up-front. iPhone? No.

With FreedomPop -- which also works on Sprint -- you can get limited service for FREE per month. Just buy Android smartphone up-front. iPhone? No.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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!
AAPL $123.25 0.00%
GOOG $548.34 0.00%
FB $83.30 0.00%
TSLA $185.00 0.00%
YHOO $45.10 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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