Samsung, Motorola Are Apple's Biggest Mobile Threats: 10 Reasons Why
Apple is undoubtedly a
mobile powerhouse. The company's iPhone is selling like gangbusters and its
iPad continues to dominate that market. By the looks of things, it doesn't seem
that there is a single company in the mobile marketplace that has any chance of
threatening Apple's position.
Of course, some might disagree with that. Those dissenters would say that
Google is the biggest threat to Apple in the mobile market, as evidenced by its
Android platform's success over the past year. It's a compelling argument, but
it might not be something Apple worries as much about-yet. True, Android is
growing, but the impact that growth has had, at least so far, on Apple's
revenue and profits, has been minimal.
Outside of Google, Samsung and Motorola might be the top threats to Apple's
mobile success. Together, the companies offer some of the most compelling
non-Apple devices on the market. And they have the kind of name-recognition
that makes them real threats to Apple's iPhone and iPad.
Will Samsung and Motorola ruin Apple in the mobile market? Of course not, but
out of any other companies, the smartphone and tablet makers are Apple's
biggest threat.
Here's why:
1. Galaxy S smartphones are catching on.
Samsung has sold more than 10 million Galaxy S smartphones since their launch
last year. Yes, that figure pales in comparison to the tens of millions of
iPhones Apple has sold in the same span. But it's an impressive figure
nonetheless.
It proves that Samsung knows how to market its products and appeal to customers
even though Apple is still competing in those markets. It also proves that not
everyone is so willing to jump on the iPhone bandwagon.
2. The Galaxy Tab is the iPad's best
competitor.
Like Samsung's Galaxy S smartphone, the company's Galaxy Tab is one of the more
popular tablets in the mobile space. In fact, Samsung announced recently that
it has sold more than 1 million tablet units since that device's launch. Once
again, that won't match the iPad. But the tablet market is still in its
infancy. If Samsung can offer an even more compelling tablet this year, it
could take a deeper bite out of the iPad's market share.
3. Motorola is a major Verizon threat.
As Apple prepares to offer its iPhone to Verizon customers,
it would be imprudent of the company to forget about Motorola. For years
now, Motorola has been the best alternative to Apple and its iPhone for Verizon
customers. The company's Droid devices have performed extremely well. Given the
quality of those products, especially the Droid X, one shouldn't be so quick to
say that the iPhone will steamroll Motorola's alternatives when it launches on
Verizon's network next month.
4. The Xoom tablet should scare Apple.
Motorola
unveiled one of the most appealing iPad alternatives ever announced at the
Consumer Electronics Show earlier this year. Dubbed the Xoom, the tablet boasts
a 10.1-inch display (Apple's iPad has a 9.7-inch screen), Android 3.0, two
cameras, video-recording functionality and much more. It earned top honors at
CES for its impressive spec sheet and functionality. Once it hits store shelves
later this year, it could prove to be the biggest threat yet to Apple's
dominant tablet market share.
5. Google isn't such a threat yet.
Many folks point to Google as Apple's biggest threat in the mobile market. They
say that the company's Android platform could significantly affect Apple's
positioning in the mobile space. But that's debatable. In fact, Google might
not be as big a threat to Apple as some believe. Google is a software provider,
while Apple is a hardware company offering its own software on its products.
That's an important distinction. Over time, Google and Apple will likely have
an all-out brawl in advertising as Google's AdMob and Apple's iAd continue to grow.
But at least for now, Motorola and Samsung seem like bigger threats to Apple's
business model than Google.
6. Apple is more about hardware.
The reason Motorola and Samsung are bigger threats than Google is to Apple right
now is simple: Apple is a hardware company first. A quick glimpse at its
financial results each quarter shows how much hardware drives its growth, not
software. Considering that Motorola and Samsung are also hardware providers, it
would only make sense for those two companies, at least in the short-term, to
be Apple's biggest threat.
7. Motorola has impressive leadership.
Apple has Steve Jobs, which usually puts it well ahead of the competition.
Jobs is arguably the most forward-thinking CEO in the technology industry right
now. But Motorola Mobility has an impressive CEO of its own-Sanjay Jha. He
might not be Steve Jobs, but he has led Motorola back toward the top of the
mobile market with impressive products each year. Jha has proven that Steve
Jobs isn't the only CEO who understands the mobile market.
8. Name recognition is there.
One of the key aspects of Apple's success is its name-recognition. People all
over the globe know the Apple brand and believe that it's synonymous with a
level of quality and craftsmanship that isn't matched in the markets in which
it competes. However,
Motorola and especially Samsung have similarly respected brands that people
around the world turn to daily. That helps keep them relevant against Apple and
could prove to be a thorn in Apple's side.
9. Android is a consideration.
Although Google isn't a huge threat to Apple at the moment, the company's
mobile platform is catching on among consumers and enterprise customers around
the world. Motorola and Samsung have both decided to capitalize on Android's
growth and adopt that operating system in their own products. Going forward,
that will likely pay off. According to Gartner, by 2014, Android will be close
to becoming the world's most-popular mobile operating system, finally coming
close to besting Nokia's Symbian platform.
10. Trust plays a role.
While
Samsung and Motorola enjoy name-recognition, that only helps them sell more
products. But their success goes beyond that. Both Samsung and Motorola have
earned the trust of customers who believe that the companies deliver a fine
service and product for their own unique needs. There are some companies in the
tech space that don't have such a great reputation. Samsung and Motorola generally
do have good reputations. And that alone should help them compete with
Apple-the company that arguably has the best reputation in the world.
