Apple Inc. (AAPL), Nokia Corporation (ADR) (NOK), Microsoft Corporation (MSFT): Elopsided

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Samsung recently unveiled its Galaxy Gear Smartwatch. The watch, released on September 5, will work with smartphones that run Android operating systems, and will officially make you feel like James Bond. The innovation is expected to sell modestly in the beginning, with an estimated 1.2 million units to be shipped in 2013 and seven million in 2014.

Apple Inc. (NASDAQ:AAPL) continues to improve its smartphone and recently announced new iPhone products. These include the iPhone 5S and the iPhone 5C. The 5S is made of high-grade aluminum and is the first 64-bit smartphone. The cheaper 5C is made of plastic and is targeted toward emerging markets like India and China. While these upgrades aren’t completely new products like Samsung’s Smartwatch, they show that Apple is continuing to improve its current phones.

The fierce competition between Apple Inc. (NASDAQ:AAPL) and Samsung means that neither company will become complacent. This will make it even more challenging for Microsoft to retake market share.

Conclusion

Despite the negative reaction to Microsoft’s recent acquisition, the company needed to make a move to improve its mobile market standing. While I’m not convinced that taking its struggling relationship with Nokia to the next level was the right decision, it’s a move nonetheless. By acquiring Nokia, Microsoft has made a commitment to advancing in the mobile industry. If Microsoft can use its new mobile business to spark innovation and develop creative products that consumers want, then the acquisition will be a success. For now, stay away from Microsoft and Nokia, but keep an eye on what the company does with its new handset manufacturing capabilities.

The article Microsoft’s Mobile Move originally appeared on Fool.com and is written by Ben Popkin.

Ben Popkin has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. 

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