What Does iOS 7 Mean for Apple Inc. (AAPL)?

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It’s an exciting time for consumers, but perhaps less so for Google. The company, which has been steadily gaining market share, may plateau soon. Google’s own I/O event in May did not include an update to Android, which many observers welcomed as a break from relentless Android fragmentation. That fragmentation reveals a major advantage Apple Inc. (NASDAQ:AAPL) has over Google: a far tighter rein over its software and hardware. That tight grip has previously led Apple to be reluctant to change, but iOS 7 is a hint that that might be changing.

There are rumors that Google Inc (NASDAQ:GOOG) might be releasing that Android update soon, and I’ll be excited to see what Google’s next set of innovations will look like. The company has also been pushing for more control of hardware, with the announcement that its Motorola Mobility subsidiary will be producing a new Moto X handset–a sign that Google is beginning to see the advantages of Apple’s stance?

I would keep an eye on Google over the next few months to see how they respond. With stocks currently trading near an all-time high, it’s not a wise time to buy Google. The company has been smart so far with its moves in the mobile market, but it’s now a critical time.

Microsoft Corporation (NASDAQ:MSFT) is also trading high, at its highest in nearly a decade. The company’s Xbox One announcement was fairly well received, although Sony’s Playstation 4 may yet outshine it. But while Microsoft has a decent handle on the gaming market, it is decidedly less confident when it comes to mobile.

When the Windows Phone debuted, it kicked off a movement toward the “flat” design that Apple Inc. (NASDAQ:AAPL) is embracing with iOS 7. Imagine that — a Microsoft design choice inspiring Apple. Indeed, the phone’s operating system is attractive and modern, and the next version looks to be innovative as well.

Windows Phones are succeeding in emerging markets, where manufacturer Nokia Corporation (ADR) (NYSE:NOK) is a prominent player. Thus, Microsoft Corporation (NASDAQ:MSFT) is in a strong short to medium-term position, as its dominance in those markets has gone as-yet unchallenged by Apple.

However, with rumors swirling of a low-cost Apple handset targeted at precisely these regions, and iOS 7 indicating that Apple is now willing to make such an iconoclastic (Jobs-o-clastic?) move, Microsoft’s long-term prospects in the mobile market are less certain.

Steven Yenzer owns shares of Apple. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Steven is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article What Does iOS 7 Mean for Apple? originally appeared on Fool.com and is written by Steven Yenzer.

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