Google grabs slice of smartphone pie
Posted
Oct 08 2009, 03:26 PM
by
Tobin Smith
Rating:
There’s no doubt about it. The fiercest battle in the corporate world today is being fought over smartphones.
The latest salvo in this war comes from Google (GOOG) via its new Android mobile operating system. In recent weeks, Google has confirmed no less than nine new devices set to use Android. The pipeline for new Android-equipped smart phones is bursting, with handset makers Motorola (MOT) and Samsung firmly on board. Verizon Wireless (VZ) will be coming out with two new Google Android phones in the weeks ahead.
Bing: More on Smart Phones
Hey, I’m a big fan of competition, and I love a heated fight for market share. And while I will be keeping a close eye on the impact Android is sure to have, according to the ChangeWave Alliance Research Network surveys, the really interesting battle in the smart phone wars still is being waged by industry titans Research In Motion (RIMM) and Apple (AAPL).
Our data shows that current smart phone ownership has risen sharply over the past two years, and that consumer smart phone buying plans are at near record high levels. A September ChangeWave survey took an up-close look at the impact of the new Apple iPhone 3GS and rival Palm (PALM) and its new Pre smart phone on the market. Of course, the big boy of the smart phone battles still is Research In Motion and its iconic BlackBerry.
According to the latest September numbers, RIM is the current market share leader among consumers. That lead, however, has slipped ever so slightly from the previous survey conducted in June. Also, RIM’s market share among consumers now is at its lowest level in two years.
Meanwhile, Apple has seen a huge market share jump since the previous survey, and is now within striking distance of the number one spot in the consumer market. Now keep in mind that we are talking about consumer smart phone purchases, and not corporate smart phones. RIM still remains the overwhelmingly dominant player on that front.
In an encouraging sign for Palm, this was the first Alliance survey that didn’t see the company’s market share slide. These positive results for Palm are undoubtedly partly due to the favorable impression new Pre owners have given their smart phones.
Of course, when it comes to customer satisfaction ratings, Apple’s iPhone continues to amaze. The company boasts the highest customer satisfaction rating in the cell phone industry, with nearly three quarters of owners reporting they’re very satisfied with their iPhone.
I say if you want to profit from the smart phone wars as an investor—and I know I do—then the best way to do so is to own both Research In Motion and Apple, which I have in my Top Stocks Portfolio at Wall Street Survivor. Both of these companies are on my personal buy list, and I think both have plenty or room to keep dialing up big gains for investors.
At the time of this writing, Tobin Smith owned both AAPL and RIMM.
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