Kass: Google/Android Is an Apple Eater
Sep 13, 2013 | 10:53 AM EDT
What you think
You're getting' for free
The woman is wild
A she-cat tamed
By the purr of a Jaguar
Money's the matter
If you're in it for love
You ain't gonna get too far...
(Oh-oh, here she comes)
Watch out boy
She'll chew you up
(Oh-oh, here she comes)
She's a maneater. --Hall and Oates, Maneater I wrote two critical columns yesterday regarding Apple's (AAPL - Get Report) new product launch and a critical view of the company's pricing strategy. When I wrote my original negative piece on Apple in September 2012, my principle concern was the rapidly changing competitive landscape. My thesis was that Google's (GOOG - Get Report) Android, Samsung and others were rapidly catching up with Apple's history of product innovation and that, in the fullness of time, Apple's products would be more costly and provide equal or less product performance and innovation than its competitors. Today, I want write about how far Apple is falling behind its competition, particularly the Google/Android ecosystem. When I see how innovative Google and its partners have become, it is clear Apple is beginning to fall behind its primary competition ecosystem. When is the last time you saw something this cool from Apple? When is the last time you saw anything cool from Apple? It used to be a given that Apple was introducing things nobody had even thought of before. Now it seems to be playing catch-up or not even in the ballpark. The next set of Android phones will have the new Qualcomm (QCOM - Get Report) chip and are likely going to further differentiate their product from the leading competition, including Apple. As an example, notice the comments in this article regarding voice recognition. These new phones will all start to hit the market soon, starting with the Google Nexus 5. Google, unlike Apple, understands the importance of market share; it is going to price this device at breakeven -- about $300 to 350 and less than half of iPhone D(ud) -- and that is going to be much higher spec'd (better and bigger screen, processor, battery and camera). Google is simply more innovative. It develops a broader ecosystem that includes newer and cooler devices like Google Glass, in addition to handsets and tablets, with numerous partners. It delivers better products, and prices them more aggressively to take market share. Meanwhile, Apple lives in the past and tries to compete on the basis of hardware features much more than it has at any point in the past.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas