Apple Inc. (AAPL) To Become BlackBerry Of 2014? [CES Takeaway]

16
Apple Inc. (AAPL) To Become BlackBerry Of 2014? [CES Takeaway]
ElisaRiva / Pixabay

Apple Inc. (NASDAQ:AAPL)’s dominant position in the smartphone market is under threat. And this was clearly visible at the Consumer Electronics Show in Las Vegas last week. You could see thousands of people using their smartphones, but few of them were really iPhone users. Samsung Electronics Co., Ltd.(ADR) (LON:BC94) (KRX:005930) dominated the CES this year.

Play Quizzes 4

Android’s advantage over Apple

Jim Edwards of Business Insider says that he witnessed some alarming facts that reflect the future of iPhones. For example, a Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) employee was using an iPhone and a Galaxy S4. The iPhone was only for personal use, while the Galaxy S4 was his business tool. A large number of people coming to CES are considered early adopters. And there are business executives who have to choose their mobile platforms wisely.

How Value Investors Can Win With Tech And “Fallen” Growth Stocks

Valuation Present ValueMany value investors have given up on their strategy over the last 15 years amid concerns that value investing no longer worked. However, some made small adjustments to their strategy but remained value investors to the core. Now all of the value investors who held fast to their investment philosophy are being rewarded as value Read More

Most of the people using Android smartphones rather than iPhones at the event should worry Apple Inc. (NASDAQ:AAPL). A large Android smartphone has a unique business advantage. Exhibitors and business executives have to write a lot of texts and emails. Doing that on a bigger Android screen is much easier and convenient than typing emails on Apple Inc. (NASDAQ:AAPL)’s small screens. Though Apple Inc. (NASDAQ:AAPL)’s revolutionized the smartphone industry, its screens are still not big enough to do plenty of typing. You make a lot of typos and errors on a small screen.

Some of the Apple features annoy business executives

Another annoying feature of the iPhone is that it hates cookies. Business executives who use Google Calendar have to log in again and again simply because the iPhone doesn’t support cookies. Therefore, some wildly popular Google Inc. apps that rely on cookies to remember who you are can’t identify you quickly. CES is a big event, and mostly indoors. So, it precisely tests a smartphone’s camera capabilities such as distance, and taking pictures in low light conditions. When Jim compared the shots taken with the Galaxy Note 3 with those of the iPhone 5 in such conditions, he found that his iPhone was far inferior.

History shows that small screen devices lose the battle. Initially, there were Nokia Corporation (ADR) (NYSE:NOK) (HEL:NOK1V)’s feature phones and BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s smartphones with QWERTY keyboard. Then Apple Inc. (NASDAQ:AAPL) launched the iPhone, which had bigger screens compared to others at the time. It won the battle. Business users need to type a lot. And today, the iPhone screen seems tiny compared to most of the Android smartphones. Typing on the tiny screen of the iPhone is an unpleasant experience.

If Apple Inc. (NASDAQ:AAPL) doesn’t unveil a big screen iPhone in 2014, it may risk becoming another BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB).

Updated on

Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at vshukla@valuewalk.com.
Previous article The ‘Snowden effect’ In China
Next article Basel Regulators Agree On Changing Capital Rules

No posts to display

16 COMMENTS

  1. Great points. There are many more good points to add for BlackBerry 10 phones. I’m with you brother. Unfortunately there is not allot of love currently for the Blackberry although they have the best phone on the market today! New CEO, maybe he can change the public perception??

  2. Well, I used an iPhone, nexus 4 and now a BlackBerry Z30 and if typing text really is important to you the Z30 is clearly the leader. They may be a little short on the app front (although there’s not a single app that I couldn’t either download or sideload) but they have a superior os, fantastic predictive text and a great antenna.

  3. Apple is getting beat on both ends, because they are tied to a model that’s doomed. They are selling social status and innovation while the technology is becoming a commodity & their innovation has lagged far behind.

    On the high end….they aren’t fast enough. Samsung is aggressive, winning and will deliver a product in every segment — even if the market doesn’t realize it wants it yet. Behind them are 20 other companies aggressively competing for business/survival. Even Win Phone has moved farther in this area since Nokia started putting them out — they have phablets & legitimately interesting marquee models now (41 MP camera’s etc).

    On the low end…Apple doesn’t even compete. They have nothing under $600, much less $200 (where most Android phones are sold at) or $100 (where Nokia Win Phones have expanded their market share). These are the prices that the VAST MAJORITY of new smart phone users are willing to pay, and the price most users would consider paying if their contracts were detached from the phone (and they knew what they were actually paying).

    On the corporate front — Apple is nothing. Apple doesn’t even recognize that it exists. What’s happening here has nothing to do with Apple’s outreach and will only last till someone offers a real solution.

    Apple will eventually, inevitably, be a niche player in the market they created.

  4. *AHEM* BlackBerry *AHEM* secure BUSINESS phone (raises hand)… BlackBerry Balance – business and personal phone in the same device.. BlackBerry 10.2 runs Android apps.. *ahem* hello

  5. “cheap and disposable” hardly so u can get very high end phones like the nexus 5 for cheap and it has capabilities the 5s doesnt have. u can get the moto g which is better then the 5c so getting a cheaper phones doesnt mean that the phone is disposable.
    of coz there r android phones which are down right dreadful those sold in india and china they cut corners to make a profit

  6. The halting English in this article betrays its source. Samsung’s record breaking spend on marketing and surreptitious promotion has made it “the pretender to the throne”, but the effects are momentary and now beginning to fail.

  7. I was going to write a long response to this, but the short of it is this: the author offers opinion as fact with statements like “history shows…”, and faulty reporting on the use of google calendar on iOS devices. perhaps in the author’s extensive history as an investor (all of four years), he has just learned what a short-sale is. advice: you should probably disclose your position if you are trying to influence the market.

  8. I do think the iPhone will diminish it’s position due to the lackluster release of iOS7. I know many of my friends (and recently myself) on iPhones really hate the update. It also bombed the with the 5C in comparison to the 5S.

    However, the 5S is still a super duper phone with lots of capabilities that can be unlocked over time just like most Apple phones.

    Androids have the benefit of being cheap and disposable for the lower income masses. That is what they cater to with all the marketing of features that actually suck your battery dry and in the end render your phone to run out of power in less than half a day unless you get those phablets that have bigger batteries.

    Personally, Apple is overpriced both in stock and product making it hard for most people to get in. The question is does it matter? Abercrombie and Fitch ignore fat people and they’re still selling well even if they don’t have the obese people market. So I do think Apple should continue to keep with their target demographic (people who are willing to spend money on a good product that will last a while).

    Androids don’t last (my last phone was a Galaxy Nexus had less than two years of official updates).
    Android battery life is good provided you avoid putting in any features, root the phone use Greenify, etc. Whereas the iPhone 3GS just lasts long without doing anything like that because Apple engineers were smart enough not to put in features that would make the phone work sub-par (back then).

    The engineering and approach that Apple has right now under the new leadership needs work though. It feels like Tim Cook does not use their product line as extensively has Steve Jobs did.

  9. Few people in CES using iPhone… Mostly using Samsung? The author clearly suffers from confirmation bias. I saw lots of people using iPhones. Among my friends who were in CES, there were in CES, more than half use iPhone.

  10. What a bias article against iPhones and Apple!! I am a business user and use my iPhone and iPad all day long for business!! This article is just nonsense against Apple. Apple will always succeed because of their innovation, extremely high quality products

  11. “For example, a Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) employee was using an iPhone and a Galaxy S4. The iPhone was only for personal use, while the Galaxy S4 was his business tool.”
    How else can this be construed? This employee prefers iphone for personal use rather than Samsung? And business use, as a Samsung employee, means most likely they get it subsidised/free?

  12. Why would they use iPhones for personal use, but Android phones for business? Unlike PC, smartphones to certain degree represent the taste and status of the owners, nit just a working tool. This is why Apple iPhones will always dominate the high-end segment where the majority of profit is. The measure of overall smartphone market share is meaningless.

  13. “Apple’s dominant position in the Smartphone Market is under threat” – Apple haven’t been in a dominant position in the market for a number of years.

    In Apple’s defence though, this article takes the best things from a number of Android powered phones and then groups them up to criticise the iPhone which is a bit unfair I think.

Comments are closed.