Facing the competition
Samsung’s momentum, albeit threatening, will ultimately play out. The South Korean handset maker announced record earnings for the first three months of the year, increasing its operating profit by 54%. However, it is important to note that Samsung’s flagship models, those that directly compete with the iPhone, account for less than half of its sales. Most of the sales for the company come from mid-range and low-range smartphones as well as a few feature phones. In addition, Google Inc (NASDAQ:GOOG) will continue pitching the Android operating system to upcoming handset makers in order to subtly reduce Samsung’s control of the ecosystem.
There are growing concerns within Google that Samsung is becoming too powerful, coming on the heels of increased pressure on Google to key out a viable monetization plan for Android. At the onset of the year, the WSJ reported that Google’s fears over Samsung were real. At the time, Google Inc (NASDAQ:GOOG) reportedly held an emergency meeting at the Mobile World Conference with Hewlett Packard, HTC and other Android phone makers to discuss Samsung’s overbearing dominance in Android. This followed reports that Samsung had accounted for close to 40% of 2012’s Android sales.
As these clandestine wars go on, Android’s 75% global market share will present less of a threat to Apple Inc. (NASDAQ:AAPL). As it increases, in fact, a segment of the market will pay anything to be different from everyone.
Perhaps the only real speed bump will be Research In Motion Ltd (NASDAQ:BBRY). Despite the negative outlook from the media, the Canadian tech bigwig is making notable inroads. It recently released the BlackBerry Enterprise Service version 10.1, allowing corporations to control iOS and Android devices from one Mobile Device Management system. This will be a great counter to the “Bring Your Own Device” concept that rattled Blackberry’s footing in enterprise.
Conclusion
The MacBook is perhaps the greatest testament to Apple Inc. (NASDAQ:AAPL)’s success as far as advancing premium products is concerned. Even with the stumbles in the PC sector, the MacBook still remains a top choice for tech lovers who have a knack for superior products that greatly differ from the norm. Apple’s stance in the smartphone market will ultimately pay off; the current stalemate is just a mere speed bump.
Lennox Yieke has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.
The article Apple’s Case Could Be Widely Misunderstood originally appeared on Fool.com and is written by Lennox Yieke.
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