Apple Inc. (AAPL): What’s This Billionaire Think?

Perhaps that’s why Android has overwhelming surpassed Apple’s iOS as the dominant global mobile operating system — Google Inc (NASDAQ:GOOG) gives Android away for free, and has minimal device requirements.

An unlocked iPhone 5 can cost around $700. If Apple were to release a cheap iPhone — say a plastic phone that cost $300 — it would certainly appeal to budget-conscious consumers in the developed world.

But a $300 phone is still relatively expensive for consumers in countries like India — the kinds of markets a budget iPhone needs to win over.

Although most of the focus surrounding Samsung has centered on the company’s high-end Galaxy devices, the company has been aggressively going after the low-end as well. In addition to the Galaxy S4, Samsung has released seven budget handsets this year — many of which carry price tags of less than $100.

Ultimately, that could hurt SAMSUNG ELECT LTD(F) (NASDAQOTH:SSNLF)’s bottom line — cheap smartphones don’t offer the margins of the Galaxy devices — but it could establish an overwhelming Android ecosystem in emerging markets, strategically vital in the long run.

Betting on a revolution

Is innovation dead or Apple? Or is the company working on the next great thing? While the latter may certainly be true, it seems silly to bet on Apple’s stock based on the blind-faith notion that another revolutionary product is just around the corner.

Of course, if Apple is on the verge of another great revolution, then the company’s secrecy is doing it a disservice.

Google currently trades with a price-to-earnings ratio of around 27 — almost three times greater than Apple’s. Google Inc (NASDAQ:GOOG)’s stock might appear relatively expensive, but the company makes no attempts at hiding the revolutionary products it has in the pipeline.

Former hedge fund manager Stanley Druckenmiller said he liked Google’s stock last week — in fact, it’s one of his biggest positions. He mentioned the company’s ambitious projects on mobility and data, such as self-driving cars.

In buying Google, investors at least have an idea about what the company could do. With Apple, the future remains unclear.