Google Inc (NASDAQ:GOOG) is competing directly with Apple Inc. (NASDAQ:AAPL) for mobile users, but the search company may have direct advantages over the Cupertino company. A new report from Hillside Partners takes a look at those advantages and puts a Buy on their findings.
Google is not the same as Apple Inc. (NASDAQ:AAPL) because the company offers some of the most popular web services out there. Search and mail are two services that Google Inc (NASDAQ:GOOG) still have massive control over, and they are accessed on iOS devices as well as on Google Android devices. That’s a big advantage for Google Inc (NASDAQ:GOOG) in the fight for mobile dominance.
Google Inc on iOS
According to Rory Maher, the analyst who authored the Hillside Partners report, Google Inc (NASDAQ:GOOG) has been steadily improving the applications it has for mobile devices, and it’s been keeping iOS users updated with the latest changes and improvements. These function to keep users looking at Google advertisements, and keep the Google brand at the forefront of the user’s mind.
According to Maher, the improvements to services work towards enabling “Android to continue to grow its reach onto Apple devices.” The more Google services dominate an iOS device the more it becomes almost as useful to Google as an Android device. Users who are hooked into the Google Inc (NASDAQ:GOOG) ecosystem on iOS are silent Android users.
The improvement to the Google services in recent updates means that Google should continue to dominate its older businesses and make strides in attracting users to its new services. Google Now, the company’s all encompassing information tool, is now updated to search and may be able to compete with the Apple Inc. (NASDAQ:AAPL) offering Siri.
Apple Inc. (NASDAQ:AAPL) is by no means dead and buried. The company makes most of its money off of the sales of the actual devices rather than applications and services. That means that even if Google Inc (NASDAQ:GOOG) services dominate iOS devices, the Apple bottom line won’t look that much weaker. There is a deeper problem, however.
If Google manages to offer an ecosystem comparable to the Apple Inc. (NASDAQ:AAPL) version, it becomes easier for users to make the switch between the platforms. Apple’s ability to keep iPhone users buying iPhones is one of the company’s most important attributes. If Google Inc (NASDAQ:GOOG) could reduce that effect, it may have a meaningful impact at Cupertino.