Facebook Inc (FB), Google Inc (GOOG): Here’s What The Competitive Landscape Looks Like

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Microsoft Corporation (NASDAQ:MSFT) has been generating a lot of buzz in the media with the latest advertising catch phrase “Scroogle”, setting up some heat underneath rival Google’s dorm room mattresses. I can imagine there is some healthy angst and anger between the two technology giants. The rivalry continues.

This shouldn’t discourage investors from owning Microsoft Corporation (NASDAQ:MSFT). In fact, Microsoft Corporation (NASDAQ:MSFT) has been able to grow revenues by 18% year-over-year in the first quarter of 2013. The growth in Windows was able to offset the negativity surrounding declining desktop shipments as reported by IDC for the first quarter. Bing’s market share hasn’t actually seen any significant improvement against Google search.

On the bright side, Microsoft Corporation (NASDAQ:MSFT) should be able to sustain growth through its cloud related software services, Skype, the Windows refresh cycle, and this Fall’s Xbox 720 launch paired with additional Xbox Live subscriptions. The company’s robust product portfolio remains intact in both the consumer electronics and network PC space.

Facebook Home

While I did download Facebook Home, I’ll be the first to admit, I uninstalled the application after using it for ten minutes. After using Facebook Home, I wasn’t that enthused by it; it just seemed like another unnecessary mobile app, and it felt as if I was being hindered from using my Android device in a way that I wanted to. With that said, Facebook had a legitimate reason for launching Facebook Home on Android rather than Apple Inc. (NASDAQ:AAPL).

Facebook Home is too awkward of an experience to reach mass market acceptance. The Android App store gave Facebook Home 3/5 stars- meaning the product is likely to be shelved as a product disaster.

Apple destroys Facebook Home

Apple Inc. (NASDAQ:AAPL) prides itself on being a user-driven experience. Comparing the user-experience of Apple iOS to that of Facebook Home was like comparing Whole Foods Market, Inc. (NASDAQ:WFM) to Safeway Inc. (NYSE:SWY), with Apple being the Whole Foods Market, Inc. (NASDAQ:WFM) and Facebook Home being the equivalent of a Safeway Inc. (NYSE:SWY). Facebook’s ability to replace the standard graphics user interface of an Apple iPhone or an Android based smart phone is long ways away.

Apple Inc. (NASDAQ:AAPL) is known for simplicity and elegance. Apple products have that extra bit of attention to detail that not even the software engineers at Facebook could even fathom to replicate- at least not yet. In fact, Facebook Home fell short of the graphics user interface Google offers for its Android users. Meaning that if Facebook falls short of Google, and Google falls short of Apple, it just shows how difficult it is to perfect artistic software design like Apple does. I have never come across a software application that runs as smooth as iOS, which is why Facebook didn’t even bother to design a Facebook Home app for the Apple store.

According to the latest ComScore figures, Apple saw a 3% gain in market share in Smartphones. In essence, user interfaces matter a lot, and will continue to.

Conclusion

The fundamental case to buy Facebook remains intact. Social networking will remain Facebook’s greatest strength. Sister network Instagram follows closely in Facebook’s footsteps, currently with 100 million users. Facebook should focus more on figuring out add-on services that may help to better monetize Facebook from a business to consumer standpoint rather than blowing up cash on side projects like Facebook Home.

The article iOS Demolishes Facebook Home: Microsoft Says Scroogle Google originally appeared on Fool.com and is written by Alexander Cho.

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