When it comes to smartphones, tablets, and other mobile devices, everyone seems to have their own personal favorite. But, with seemingly ongoing new product introductions and continuous app capability, the clear winner one day could be lagging the next.
Certainly, the top-tech candidates include Samsung, Apple Inc. (NASDAQ:AAPL) , and Google Inc (NASDAQ:GOOG) – each with their own share of devices and systems. Yet, as the three continue to battle it out in the market place, shareholders will need to be mindful of which direction the stocks are headed.
Is Android taking a big bite out of Apple’s profits?
Over the past several years, both Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) have come out as dominant forces in the highly popular mobile-technology market. Even though both have gone with dramatically different strategies, each of the companies has also been extremely successful in its own right. And more recently, Samsung has come on strong and further heated up the competition.
Currently, Apple generates more than $1 billion monthly on its iPhone sales alone, and the Google Inc (NASDAQ:GOOG) Android operating system has also continued to move forward with massive market share gains worldwide.
Market share for Apple Inc. (NASDAQ:AAPL)’s tablet is actually falling, though, as Google Inc (NASDAQ:GOOG), Samsung, and evenAmazon.com, Inc. (NASDAQ:AMZN) continue to gain sales – making Apple’s once seemingly tight grasp on the tablet market seem like a distant memory.
In fact, the iPad’s market share has fallen by approximately 10% in just three months during the first quarter of 2013, from 73% to 63%. This is despite the release of the new iPad and the iPad Mini. And, while Apple Inc. (NASDAQ:AAPL) is still the clear leader here, a few more quarters with similar results could push it even further down the line. Google Inc (NASDAQ:GOOG), on the other hand, has had positive results with its Nexus tablet sales, currently standing at 5% market share.
Operating for profits
In the world of operating systems, Samsung has decided to take an alternate route by “cloning” Google Play on its new Galaxy 4 smartphones. With Apple Inc. (NASDAQ:AAPL)’s iTunes and Android’s Google Play, Samsung needed to fit into the equation somehow.
So, when the company released its new Galaxy S4, Samsung essentially took all of its media hubs and consolidated them all into one that now sells movies, books, music, television programs, games, and apps. In fact, the Samsung Hub already comes pre-loaded on the company’s new Galaxy devices – and is basically put directly in the user’s line of sight via a front-and-center position on the devices’ home screen panels.
Overall in 2012, Apple Inc. (NASDAQ:AAPL) accounted for nearly 70% of the smartphone industry’s profit, with Samsung bringing the remaining 34%. (The total percentage of profits is higher than 100 due to operating losses at Nokia Corporation (ADR) (NYSE:NOK), Research In Motion Ltd (NASDAQ:BBRY), and Motorola Solutions Inc (NYSE:MSI).)