Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) have been at the forefront of the tech world for the past several years, and they’ll continue to do so in 2013. However they’re about to be joined by two competitors which have steadily been growing into viable competition for 2013: Facebook Inc (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN).
At first glance, you may be wondering what the four companies have to do with each other. Sure, they’re all tech companies, and they all trade on the NASDAQ. Of course Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) have become fierce competitors over the last year or two as each develops smartphones and battles for market share in the arena. But what do Facebook Inc (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN) have to do with them?
Michael Mauboussin: Here’s what active managers can do
The debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More
Facebook Inc. (NASDAQ:FB) is of course one of the most popular social media sites, and while its main offering doesn’t compete directly with Google Inc (NASDAQ:GOOG) or Apple Inc. (NASDAQ:AAPL), we’re looking at the company’s side services—offerings which have grown rapidly in the past year and which will likely continue to grow in 2013.
Meanwhile Amazon.com, Inc. (NASDAQ:AMZN) is also encroaching on the tech turf, rapidly becoming more than just a retail site. Amazon’s Kindle and Kindle Fire devices have been just the tip of the iceberg when it comes to what the online retail giant has in store for tech gadgets in the coming year. We already examined Amazon.com, Inc. (NASDAQ:AMZN)’s growing competition with Google for 2013, but with two other tech companies thrown into the mix, things are about to get very ugly.
So what’s ahead for these four tech giants? A quick preview of what these four companies are up to in 2013 shows us just how fierce the competition is about to get. The Wall Street Journal also gives some good insight into the growing competition among these four companies.
Google Inc (NASDAQ:GOOG)
Google just recently acquired Motorola Mobility, which manufactures tech hardware, and while Google’s Android phones have been viable competition for Apple’s iPhone, the company desires more. In fact Apple’s iPhones nabbed more than half of the market share for smartphones this year, stealing Android’s position as the top market share holder.
Meanwhile Google is still trying to hold onto its large market share of the search world. Apple, Facebook and Amazon are all looking for ways to move in on Google’s long-held territory. The company is accelerating this year’s initiatives, including its video and Internet services in Kansas City. It’s also looking for ways to take over control of mobile Internet access through a variety of partnerships.
In addition, in 2013 Google will begin offering same-day delivery for online sales and continue pushing its Google+ social media site, which directly competes with Facebook Inc (NASDAQ:FB). We could even see the beginnings of a self-driving car powered by Google’s software.
Google’s Glass, which is a wearable computing device, is also expected to be released in 2013.
Apple Inc. (NASDAQ:AAPL)
Perhaps the biggest development expected for Apple Inc. (NASDAQ:AAPL) in 2013 is the Apple Television, which is rumored to be a TV set that’s linked directly with Apple’s online content and other video streaming services. Time Warner Cable Inc (NYSE:TWC)’s CEO has said he can’t wait to see it, and there have been rumors that the product has been in the testing phase with Time Warner for some time. We could see the Apple Television released in 2013.
Apple Inc. (NASDAQ:AAPL) is also reportedly looking to make a move into the search arena, possibly utilizing its well-known voice-operated search app Siri.
Facebook Inc (NASDAQ:FB)
Facebook Inc (NASDAQ:FB) had its IPO this year, and it’s rapidly looking for ways to monetize its services so that it can give back to shareholders. Next year the company’s mobile expansion, especially through mobile advertising, will be the key to its success.
Also there have been rumors that Facebook Inc (NASDAQ:FB) will develop some hardware to go along with its services. Sources told The Wall Street Journal that a Facebook smartphone is in the works, possibly with HTC Corp.
In addition Facebook will be seeking a piece of the search pie in 2013. In recent weeks it launched a mobile feature called Nearby that enables users find businesses that are close to them and that are liked or recommended by their friends and the rest of the social network.
Facebook’s Gifts feature will also begin to encroach on Amazon’s online retail empire, enabling users of the social media site to send gifts to their friends.
Amazon.com, Inc. (NASDAQ:AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) could release its smartphone this year. That phone would use the Kindle Fire HD as its basis and possibly build competition for Google’s Android phones and Apple’s iPhone. It could also make it easier for shoppers to make online purchases at Amazon.com, even while they are still inside a brick and mortar retailer, comparing prices and physically viewing products before buying.