Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Google Inc (GOOG), Apple Inc. (AAPL): This Tech Giant Is Taking on the World

Page 1 of 2
Google Inc (NASDAQ:GOOG) is rumored to be readying a video game console and a watch. That’s in addition to a cell phone, Google Inc (NASDAQ:GOOG) Glass, and Chromebook. Although Google Inc (NASDAQ:GOOG) built itself on partnering with others, it is increasingly competing. That could be bad news.
Google Inc (NASDAQ:GOOG)

Sharing

Google Inc (NASDAQ:GOOG)’s dominance in search and online advertising was built on creating cutting edge technology and letting others piggyback for a small fee. Adwords is a prime example, since anyone can start a targeted online advertising campaign at a reasonable price. The company’s Android mobile operating system is similar. Google Inc (NASDAQ:GOOG) designed the OS and lets others use it for free. It takes a cut from app sales and has cemented its position in the mobile market.

That said, as Google Inc (NASDAQ:GOOG) moves into new areas it is increasingly taking on new competitors and old friends. For example, Google recently purchased Motorola Mobility. While it claims the target was Motorola’s patent portfolio, Google is now in the handset business. The Moto X is already being primed for launch.

With partners like Samsung Electronics Co., Ltd. (KRX:005930), the only real competitive threat to Apple Inc. (NASDAQ:AAPL), using Android, getting involved in handsets is a risky move. It could open the mobile OS market to companies like Microsoft Corporation (NASDAQ:MSFT), which recently relaunched its Windows Mobile OS.

New Products

So far, Google has reached into mobile phones, wearable devices like Glass, and netbooks, though it is using a partner model in that space. Now the company is rumored to be making a watch and game console, both of which are key products for competitors and partners.

This is a big issue and an important one to monitor. For example, competitor Apple Inc. (NASDAQ:AAPL) was sure to include Google’s search as the default on its early iPhones. However, Microsoft Corporation (NASDAQ:MSFT)’s Bing is set to displace Google as the search tool for the Siri computer assistant. That may seem small, but Apple Inc. (NASDAQ:AAPL) has also tried to displace the Google Maps app.

Every chink in the armor weakens Google’s market position. The mobile market is probably one of the biggest issues. Google doesn’t dominate mobile ads like it does Internet ads, which has translated into lower mobile margins. This is the growth business right now. Getting Android to be the brains behind smartphones from companies like Samsung has given Google an industry-leading position since Android phones far outnumber Apple Inc. (NASDAQ:AAPL) phones.

Page 1 of 2
Loading Comments...