Google Inc (GOOG), Microsoft Corporation (MSFT), Apple Inc. (AAPL): The Future King of the Smartphone Industry

Page 2 of 2

While the dominance of Android and iOS is absolute in the smartphone industry, Windows might find a way through tablets and hybrids. Android and iOS are currently the first user choice for leisure computing but Windows is universally accepting as the leading ‘work’ operating system. The software giant is trying to bank on this and has already launched Windows 8; its first touch based operating system. The software giant has also taken a leaf out of Apple Inc. (NASDAQ:AAPL)’s book and is offerings its own Surface Pro and Surface RT tablets. The Windows 8 is also available on hybrid devices of partner OEM’s such as Samsung, Lenovo, Asus, Dell, HP etc.

Google’s Cloud

The ‘cloud’ is one of the primary component of future ecosystems because handheld devices have limited space onboard. According to recent reports, Google Inc (NASDAQ:GOOG) is doubling its office space Seattle to further improve its cloud offerings. Amazon’s cloud services are currently the most widely recognized in the industry with Microsoft Corporation (NASDAQ:MSFT)’s the second biggest player. Google already has a significant presence in could and enterprise services but lags behind both industry leaders. This expansion is aimed at reducing this gap and giving Google Inc (NASDAQ:GOOG) a large control over Cloud. According to analyst, a stronger Google Cloud will encourage businesses and developers to become more invested in Google products as compared to other offerings. A lot of Android applications are developed on Amazon’s cloud and Google plans to wrest back control.

This move will also increase the ability of Android to significantly strengthen its ecosystem. The company will be in a better position to offer more Cloud based Product’ on Android and indirectly control the development process as well. As compared to other players in the Cloud arena, Google has the unique ability to offer its service for lower prices or even free. This is because a very large portion of Google revenues comes from online advertisement, reducing the pressure on the search giant to be profitable from all its ventures.

In conclusion I believe Google Inc (NASDAQ:GOOG) and Microsoft are neck to neck into this rapidly evolving industry. Microsoft Corporation (NASDAQ:MSFT)plans to attract its current Windows consumers to shift to hybrid Windows 8 devices and this transition to fuel its revenue growth. On the other Google sees its ecosystem future in its cloud services and Cloud based application. Apple Inc. (NASDAQ:AAPL) is currently plagued by slowing growth and contracting margins, but the company certainly has enough resources to make a comeback. The route that Apple takes now to reclaim its top spot can be the deciding factor in this industry.

The article The Future King of the Smartphone Industry originally appeared on Fool.com and is written by Mohsin Saeed.

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

Page 2 of 2