Apple Inc. (AAPL): Is iWatch A Bad Omen?

Microsoft, meanwhile, has been able to showcase its mobile operating system. Since that is the heart of the phone, most of the accolades, and negatives, about the Lumia really belong to Microsoft. If it can take the success of the Nokia phone and shop around its operating system, it might yet be able to take the No. 3 spot in the smart phone wars. Not the position it wants, but a good place to be just the same. Of course, Microsoft’s “me too” tablet hasn’t been doing as well as expected, which isn’t good news.

Google Inc (NASDAQ:GOOG), meanwhile, has taken a different approach to the entire space. It just wants more devices to run on its Android operating system so it can collect advertising revenues. This device-agnostic stance, makes it look more like a pick-and-axe company, providing the tools for others to compete and collecting money along the way. The best part is that Android has been becoming increasingly competitive, notably gaining ground in the applications being offered for its operating system. Moreover, Google has the benefit of being on Apple’s devices, too, with its own apps.

Of course one of the reasons for Google’s success is Samsung’s success at competing with Apple Inc. (NASDAQ:AAPL). The Galaxy line of products, which the two companies have bitterly sparred over in the courts, has proven an ample counterweight to the iPhone and iPad. The fact that Apple went to court to hinder the Galaxy’s progress may be as telling as the iWatch idea.

More bodies

This also makes succeeding in China even more important. Indeed, the Apple’s CEO has already said that China will be its biggest market. Based on the population, many of which are entering the middle class, that seems increasingly important if the company has to sell more to make more. And Wall Street is certainly expecting more from Apple Inc. (NASDAQ:AAPL). Or at least, it was until recently.

For a few months now, the shares have been weak at best. Even hedge fund managers are getting in on the act, with David Einhorn publicly taking on the company. That would have been close to unheard of just a year or so ago. Perhaps Einhorn smells blood.

Calculator Watches

If you are old enough to remember the calculator watch, which was a very exciting development thirty or so years ago, the notion of wearing a small, functionally limited computer on your wrist probably isn’t too exciting. Unless Apple Inc. (NASDAQ:AAPL) finds a way to really knock the world’s socks off, the iWatch is destined to be a disappointment. It may also seal the belief that Apple is out of ideas and is now just a device seller working off of volume.

Yours,

The article Is iWatch A Bad Omen? originally appeared on Fool.com and is written by Reuben Gregg Brewer.

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