Citing a number of regular readers, MacDailyNews noted that Verizon (NYSE:VZ) has slashed the price on all its phones run by Google's (NASDAQ:GOOG) Android operating system.
The Apple-inspired website had this to say about the changes: “Successful platforms do not need to have prices slashed and perpetual BOGOF [buy one, get one free] promotions.”
Take that from the big Apple (NASDAQ:AAPL).
Of course with the low prices Google Android is now the top system used in smartphones, but as in the case of General Motors (NYSE:GM) in the car industry, building market share on incentives alone ultimately damages margins and earnings, and eventually has to end.
Google has deep pockets of course, but sooner or later shareholders will want to know how it's adding to the share price of the company, just like they did with YouTube.
Friday, March 4, 2011
Apple (AAPL) Disses Android (GOOG) for Verizon (VZ) Price Cuts
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3 comments:
Does anyone think, let alone do any research, before posting blogs like these?
Google doesn't MAKE any of these phones, they're a software company. Also, they give away their OS for FREE. It's a completely different strategy than Apple, which makes the entire phone from top to bottom.
Google makes money from their web ad sales, which is rapidly heading mobile. Google wanted to have a counterweight to Apple which they feared would own the smartphone industry, and in that regard, they succeeded.
Right on. The real losers here are Verizon and the Android phone manufacturers. If the manufacturers have contracted subsidies with Verizon to keep prices down, Verizon may have to eat the price cuts. If not, the manufacturers will take the hit. Either way, if it produces more Android users, it helps Google.
Could it also be that they are clearing inventory to make way for the latest versions of their phones....duh! I seem to recall seeing an Apple commercial in the last week or two pitching iPhone3 for $49
appleholics get real.
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