Apple Inc. (AAPL) & Google Inc (GOOG): Possible Stagnation in the Smartphone Industry

Samsung’s way out

Samsung is following a completely different approach. Instead of focusing on the development of new and innovative technologies, it avails a technology and then fine tunes it a bit before marketing it extensively with its giant network.

With its strong presence in the underdeveloped Asian markets, Samsung has made it possible for the people of these economies to gain access to a wide range of smartphones at lower prices. The company offers smartphones with varying specifications depending on price, which is something that Apple Inc. (NASDAQ:AAPL) does not offer. Though Apple Inc. (NASDAQ:AAPL) is coming up with a cheaper version of iPhone for these countries, Samsung still gives a lot more by taking a lot less.

Fool’s bottom line

The demand of the hour is for smartphone makers to upgrade their devices with new technology. In the meantime, I think that Samsung with its wide range smartphones and it solid roots in the Asian emerging markets can bear this gap until something revolutionary comes along. Google Inc (NASDAQ:GOOG) is also safe against any sort of downturns as its focus is not just the Android platform. It has a number of amazing projects which will ensure its stability in future.

On the other hand, things are not working out for Apple the way that the company might have planned. Unlike Samsung, Apple does not offer a wide range of smartphones; this is troublesome because you can’t meet the needs of different consumers with a single device. The company needs to diversify or give its customers a good enough reason to buy its products, and that can only be achieved if it comes up with something new in terms of technology. Only then will investors start relying on Apple Inc. (NASDAQ:AAPL) the way they do with Google Inc (NASDAQ:GOOG).

The article Possible Stagnation in the Smartphone Industry originally appeared on Fool.com and is written by usman iftikhar.

usman iftikhar has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG). usman is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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