Should Google Inc (GOOG) Worry About New Competitor? Probably Not

With the iPhone 5c coming soon, there are many questions surrounding how the market will react. One of the most important question is this: will the competition, such as Google Inc (NASDAQ:GOOG) Android smartphones, run into a decline in sales?

Should Google Inc (GOOG) Worry about New Competitor? Probably not

From the outside looking in, one would have to imagine that Larry Page and company are worried about this. However, a recent report from Digitimes, courtesy of Steven Shen and Daniel Shen, would have you thinking differently.

The story takes the stance that the iPhone 5c is not likely to affect the sales of Android smartphones. This would be great news for Google, and also a little bit concerning for the new smartphone out of Cupertino.

Why shouldn’t Google Inc (NASDAQ:GOOG) be Worried?

According to sources quoted in the story, Google doesn’t need to worry about this too much due to the fact that unlocked prices of the iPhone 5c are going to come in at $549 (16GB) and $649 (32 GB) respectively.

Even if the iPhone 5c becomes available from China Mobile, the pricing of the device should continue to allow other brands, such as those powered by the Android operating system, to have success in the entry level segment.

There is one other thing you need to keep in mind: the competition is not going to sit back and let the new iPhone take over. Instead, its primary competitors, including Samsung, are going to push new models in late 2013 to fend off the assault. And as you know, many of these competitors rely on the Google Inc (NASDAQ:GOOG) Android operating system.

The article goes on to explain that the release of the two newest iPhones is sure to help Cupertino gain market share during the fourth quarter of 2013. At the same time, Android smartphones are expected to account for as much as 80 percent of the operating system market during the same time period. If this estimate is correct, iOS has a long way to go.

Even with the iPhone 5c receiving a lot of hype, Google Inc (NASDAQ:GOOG) Android smartphones should be safe moving forward. The company will always keep an eye on the competition, but this advance out of Cupertino may not do much to its overall market share.

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