The Shining Star
Rekha is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Apple Inc.(NASDAQ: AAPL), world’s most valuable company has recently launched its most awaited iPhone 5. There’s more in store as people wait in anticipation for the smaller version of iPad which is rumored to be unveiled soon. Kirk Yang, a Hong Kong based analyst at Barclays wrote that Apple was still on target to release iPad Mini in 2012 which could easily sell up to 9 million units. Apple has sold 5 million units of its iPhone which was lesser than expected and thus it will be interesting to see if the final numbers will match the expectations. A survey shows that people are flocking to mobile devices more than ever. The strong demand and the approaching holiday season may see various companies offering new and affordable tablets. At present the figure of tablet owners who also own iPad has fallen by 52%. Many own Google developed Andriod-based device or Amazon’s Kindle Fires.
Google Inc.(NASDAQ: GOOG) offers new Nexus7 for $199 and Amazon offers Kindle Fire HD model with 7 inch screen for $199 and an 8 inch model for $499. Many others are also offering similar type of devices at a low price. If Apple wants to remain in dominance in the tablet market and steal the holiday show, it needs to launch a smaller and cheaper iPad model soon.
The tech giant typically holds its fiscal fourth earnings conference call between October 10 and October 18, this year it has been scheduled a week later on October 25. This could perhaps mean that they want the analysts to focus on an iPad Mini in mid-October, instead of their quarterly results or maybe Apple is trying to lessen the focus on Microsoft’s(NASDAQ: MSFT) new Window 8 tablet launch.
Tim Cook, the CEO of Apple made a courageous move by apologizing to the disgruntled customers for prematurely launching the new map app for iOS and suggesting them to use the competing platforms. This has benefited their rivals who reported a steep jump not only to their popularity but has also boosted their shares. Waze downloads were up 80% more than the usual and MapQuest experienced 0.43% rise in their shares. Apples faltering steps have benefited Google which had been providing mapping services to iOS users for years. The benefits to Google has not only been because Tim Cook confessed to the world that Google’s map services are better than Apple’s, even when Google is their biggest competitor, but also because it is the company behind Android, the world’s most popular smartphone operating system. Android phones produced by Samsung and HTC came with pre-installed Google powered map app, Apple too offered Google powered app so it did not prove to be the selling point then but now Android wins over iOS devices which is no more powered with the app. The sales of the iPhone 5 is incredibly important for the company for it will determine the performance of the company and the company hopes the sales of this iPhone will help it regain its strong performance standard. In the fiscal third quarter, Apple reported revenue of $35 billion and earnings of $8.8 billion, this was up from revenue of $28.57 billion and profits of $7.31 billion a year ago, but the analysts had expected that the company would bring in earnings of $10.35 a share and revenue of $37.2 billion.
Apple receives more good news, Google’s Motorola Mobility, the android based smartphone makers, have withdrawn the infringement complaint that it had filed against them, they did not provide any reasons for the withdrawal of the case. Google is expected to add more than 17,000 patents into its trove by acquiring Motorola Mobility in May this year for $12.5 billions. The acquisition will also help the company to move into the hardware market and strengthen its competition with Apple, it will also help it to create better Android devices. Though Google has grabbed a big of shares in the smartphone market it is yet to see similar success when it comes to dominating iPhone market. Google is now the fifth most valuable company in US. On Tuesday, Google closed at $756.99, down $4.79 whereas Apple closed trading at $661.31, up$1.92.
Microsoft has also seen a rise from 20 cent to 23 cents which shows 15% hike, the company’s capitalization is around $257 billion. Microsoft lords the OS market and it remains the company’s main source of revenue. Microsoft is also reported to make Windows 8 phone to compete against the iPhone, Samsung Galaxy SIII and other high-end phones. It is doing what Apple has done, controlling both its hardware and software, this may bring the company in the direct range of fire of its hardware partners. The release of Windows 8 may turn out to be highly rewarding and may herald a new era for the company which is now facing tough competition from other tech giants. To climb back to its glorious heights it has to be innovative and be ready for any competitions.
New launches and high performances by the companies have given the investors something to ponder upon. Apple's new product has been criticized and it did come with hitches yet many desire to own it and are waiting in anticipation for the new star to shine. If it was really so bad why are the people out there desiring to own it? As for the company it is seeing incredible revenue and earnings growth. So get set, it is never too late to take a bite of the sweet, juicy apple.
rekhamarwah has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.