Will Apple Inc. (AAPL), Google Inc (GOOG) Benefit or Suffer Because Of This?

Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG) and their places in the smartphone market are very delicate. Any move in the wrong direction can cost a company big.

On the Apple side of things, you have Tim Cook and Jony Ive pushing to make the iPhone and its iOS operating system the go to smartphone.

On the Google side of things, there is Larry Page and Sundar Pichai pushing its Android operating system to new heights.

While both companies have had success to this point, there is one thing we don’t want to forget: the market can and will change over time.

Will Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG) Benefit or Suffer because of this?

And if you believe a recent report by ABI Research, a big change is coming. Their latest research study shows that sub-$200 smartphone shipments will exceed 750 million in 2018. Even more so, they are expecting low cost smartphones to account for 44 percent of all shipments by 2018.

In other words, both Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) have to be prepared for this.

Apple Inc. (NASDAQ:AAPL), you are up

While this is important to both companies, one cannot help but to think about what this means to Cupertino.

For the past few months, many have been talking about whether the company will release a cheaper iPhone towards the end of 2013. There is nothing concrete out of the Apple camp at this time, however, it doesn’t mean there is no conversation internally.

If Apple is going to compete in the global smartphone market moving forward, it will need a cheaper iPhone as a means of becoming a major player in emerging markets.

Google Inc (NASDAQ:GOOG) is in better position, being that its operating system, Android, is used by a variety of vendors. This allows the company to spread its market share far and wide.

Senior analyst Michael Morgan added that “research has shown that the feature gap between low- and high-end smartphones is decreasing, making low cost smartphones a ‘good enough’ solution for price sensitive consumers in all markets.”

Both of these companies plan on staying relevant in the smartphone game for many years to come. For this reason, Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) will need to focus on price over the next five years.

These hedge fund managers continue to like what they see from Apple: David Einhorn, Christopher Hansen, and Jeffrey Edwards.

Check out the video below for more on what the iPhone may provide users in the future:

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!