Apple Inc. (AAPL)’s Future

Page 2 of 2

According to PiperJaffray’s, the next phone purchase will most likely be Apple’s iOS for 59% of teenagers.

Source: PiperJaffray

According to ComScore, Apple Inc. (NASDAQ:AAPL) was able to gain 2.7% market share within the United States in the first quarter of 2013. Currently, Apple has 39% of the United States smart phone market. This may mean that Apple could eventually reach 59% market share within the United States based on the survey statistics for teenagers by PiperJaffray’s.

Google’s Android strategy, while effective initially, may not have been as effective as Apple’s smartphone strategy over time. This can be reflected by the 1.4% decline in market share for Android-based smart phones over the first quarter of 2013.

Microsoft is determined to provide a unifying product platform that is similar to that of Apple Inc. (NASDAQ:AAPL). This means Microsoft will be shoving Google out the door. Microsoft has the desktop market in the palm of its hand. The usefulness of desktop and laptop computing cannot be replaced through mobile phones. Content generation has to be done on a desktop or laptop computer, meaning that Microsoft is the most likely contender to ruining if not dismantling Google’s Android ecosystem. After all, it is Microsoft that has the resources to do so, and the Windows 8 platform.

Conclusion

Google has done a marvelous job of unifying the handset manufacturers. I get the feeling that Microsoft will aggressively expand its market presence in mobility. This may mean throwing Google and all of its mobile manufacturers under the bus. The question is a matter of whether or not Microsoft will adopt a more vertical business strategy.

Some point out that Microsoft’s paid operating system versus Google’s free platform doesn’t even merit comparison based on price alone. But when you factor in the wholesomeness of having a unified computing experience across all electronic devices, Google could end up losing market share to Microsoft. As a result, Google will be forced to create an operating system for the desktop and laptop space. This will make Google the third alternative in desktop and laptop computing.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.

The article Apple’s Future originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2