Only Apple Inc. (AAPL) Can Stop Google Inc (GOOG)

Heavy capital investments towards the development of iPhone 5 are seen as a major nemesis to Apple’s declining margins. Unfortunately, this was indeed necessary for the iPhone maker to stamp its authority in a business it used to dominate without significance challenge from rivals. But things have changed as rivals become venomous and willing to take the battle to the next level.

Bottom Line

A couple of years ago Apple were literally invincible, but Google seems to have found a weak point, which it has utilized well. After all, every giant has a weakness. The biggest question is can Apple reverse the roles and identify Google’s Achilles? Only Apple can stop Google, otherwise Google will soon be looking to launch another strategic attack as it tries to win the battle once identified by Eric Schmidt as the “biggest ever” in the industry.

Apple’s plans to counter Amazon’s threat on its iPads business with the introduction of the iPad mini seem to be paying some dividends, but there are also threats to its mainstream line of iPads, as the minis are feared to be cannibalizing on the 9.7” family. There are also rumors of a plastic cover iPhone set to cater for the low-end consumer segment, but this could yet again infringe on margins, Apple’s main strength.

The article Only Apple Can Stop Google originally appeared on Fool.com and is written by Nicholas Kitonyi.

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