Apple Inc. (AAPL) Losing Market Share to Google Inc. (GOOG) Due to Prices

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Apple Inc. (NASDAQ:AAPL)’s CEO Tim Cook threw a punch  on Google Inc. (NASDAQ:GOOG) at the recently held software developer’s conference claiming that many people were leaving Android for iOS but failed to address cost issues that continue to make Google products more attractive. Google’s Android commands an 80% market share because it is extremely cheap and well distributed through partnerships with the likes of Samsung.

Apple Inc. (AAPL), Google Inc (GOOGL): Who is Winning the Tech Battle

Apple Inc. (NASDAQ:AAPL) is currently fighting two battles both on the hardware side against Samsung and on the Software front against Google Inc. (NASDAQ:GOOG). Many app developers first develop their apps on iOS but later shift them to Google’s Android for the sole purpose of enjoying the benefits of higher coverage.  The price barrier continues to be the biggest challenge that has greatly hindered the growth of Apple products compared to Google.

Former MySpace CEO, Michael Jones, believes that for Apple Inc. (NASDAQ:AAPL) to gain a sizeable amount of market-share in the competitive smartphone platform, it will have to address the high prices it tags on its products compared to Google.  The market share that Google Inc. (NASDAQ:GOOG) commands with its Android OS seems to be one of the most attractive features to many software developers according to Mr. Michael Jones in an interview on Fox Business news.

“You can assume that Apple is going to spend more on an average session, it is going to use your applications a little bit differently, but inevitably large brands and large application builders are going to need to be on both platforms. Because Android is simply too big to ignore. ” Mr. Jones said.

Mr. Jones remains bullish on recent upgrades that Apple Inc. (NASDAQ:AAPL) has introduced on its hardware, especially on the opening up of the keyboard to allow users manipulate it as they wish. Mr. Jones also believes that Tim Cook is doing a great job at Apple in filling the big shoes left behind by Steve Jobs.

He still maintains reservations on Apple Inc. (NASDAQ:AAPL) as an investment opportunity on the basis that Google Inc. (NASDAQ:GOOG)’s Android controls a big market share that is Unshakable as of the moment.

“I have been a huge fan of Apple products like forever and so I love what Apple has been doing. I am huge supporter of the ecosystem but as an investor, I look at Android all the time” said Mr. Jones.


Disclosure: none

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6 Comments

  1. So people are leaving Android for I-OS; but AAPL should be concerned with Android as a competitor because it is cheaper huh?
    Well then why are they not concerned on the device level?
    Answer is that in both cases cheap does not equal value. Value is what you get in terms of overall satisfaction; not what you paid for it.
    Again….you guys just don’t get it. You never will.

    • Most Android flagships sell around the price of iPhones. My S5 is just as expensive as the 5s and the 6 that’s coming up. It actually costs more to make an S5. Some people truly can’t afford flagships or iPhones. That’s the reason why Android rules the lower percentile with almost no competition.

  2. Look at AAPL stock today.
    If this is the best you can come up with to try to stop it; better go back to the drawing board and write something believable.
    LMAO!!!!

    • This article is so clearly about market share. Everyone knows Apple still makes money. It’s believable and completely true that Apple is still losing market share.

  3. Wayne Williams on

    Wait a minute. You mean an OS that’s installed on about 4500 devices is winning in market share??? Excuse me, the 90s want their tech arguments back… This reminds me of the Windows fanboys saying Windows is better because it’s on more computers. Give this stupid ass marketshare crap a rest. It means nothing. Next, you’ll be saying Toyota is better because they sell more vehicles than the F150.

  4. So, what’s more valuable to a company: market share or profit? You say, “Android commands an 80% market share because it is extremely cheap”. So? Apple commands a loyal customer base and much higher profit per device. Lowering prices might increase Apple market share, but at what cost to profits? What is the punchline of the article? I don’t see the clear statement “Apple should lower its prices” or the justification for this implied position. “Many app developers first develop their apps on iOS but later shift them to Google’s Android” is not such a justification. Developers start with iOS because iOS generates far more bang for the buck (use per device). But you just said “developers first develop … on iOS”. What more could Apple want? Lowering price would not prevent developers from expanding their base by developing on Android too. It would simply dilute the quality and brand advantage Apple enjoys while eroding price. And a lower share price would surely result. Do you love Ford ($68B market cap after selling 2.5M cars in 2013) over Tesla ($28B market cap after selling 25K cars 2013)? Unless you think Apple’s business plan flawed (if so, say so), then love AAPL for its profitability, not for its dull ubiquity.

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