Why Apple Inc. (AAPL) Should be Concerned About Samsung’s Sluggish S4 Sales

Motorola’s moonshot bets

Google Inc (NASDAQ:GOOG)
acquired Motorola in 2011, and at the time, the search giant claimed it was strictly a patent play. But now, it appears there might be more to it.

Motorola is expected to launch its long-anticipated Moto X phone this fall. Without seeing it in action, it’s hard to judge how revolutionary the device will be. That said, based on features hinted at the D11 conference, it could bring a level of innovation to smartphones that hasn’t been seen in years.

The Moto X is said to make use of sensors to alter its behavior based on the world around it (for example, knowing that it’s in a car traveling down the highway, and reacting accordingly).

Will it be enough to drive sales? Perhaps.

Motorola is a relatively small part of Google Inc (NASDAQ:GOOG)’s overall business. Consequently, even if the Moto X sells very well, it probably won’t move the needle too much when it comes to Google Inc (NASDAQ:GOOG).

But Motorola’s management has said the company is focused on taking “moonshot bets” — ambitious projects with the potential to completely revolutionize markets.

That kind of major innovation could lend itself well to Google’s growing online ecosystem, getting people to think about switching to Google Inc (NASDAQ:GOOG)’s Android operating system, and interacting more with the company’s various services.

The stalled smartphone market

Going forward, the high-end smartphone market appears to have limited growth potential. That doesn’t speak well to companies that are heavily exposed to that market, such as Apple Inc. (NASDAQ:AAPL) and Samsung.

That growth could be reignited if new phones (perhaps the Moto X) are able to offer radical new features. But in the meantime, incremental updates like the Galaxy S4 and iPhone 5 just don’t seem to be cutting it.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Apple Inc. (NASDAQ:AAPL) and Google. The Motley Fool owns shares of Apple and Google Inc (NASDAQ:GOOG).

The article Why Apple Should be Concerned About Samsung’s Sluggish S4 Sales originally appeared on Fool.com.

Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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