Google Inc (GOOG), Apple Inc. (AAPL), Research In Motion (BBRY): The Smartphone Wars in 7 Charts

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Based on how customers choose other devices, there’s some evidence of loyalty as customers like to stick with familiar platforms.

Hardware

Samsung (NASDAQOTH:SSNLF) has emerged as a major player on the hardware side of the business. Sales of smartphone device devices have grown 100% year over year attributed mostly to the company’s popular Galaxy handset. While Apple Inc. (NASDAQ:AAPL) still reigns champ, Samsung is quickly catching up.

Samsung’s emergence has created concerns that the company is becoming too important in the Android ecosystem and could use its power to negotiate a slice of app revenue. Google is rumored to be developing its own handset device in order to counter the Samsung threat and grab a piece of hardware sales.

Emerging markets

While a duopoly has emerged in the United States, Android is the clear leader internationally accounting for 70% of all devices sold. More importantly, Android has 90% market share in China, which recently surpassed the United States as the world’s largest smartphone market.

Why has Android been so successful internationally? Google Inc (NASDAQ:GOOG)’s ad-subsidy gives Android handsets a price advantage over competitors.

In contrast, Apple Inc. (NASDAQ:AAPL) has struggled in China. In addition to being more expensive, Apple hasn’t been able to cut a distribution deal with the nation’s largest carriers.

Foolish bottom line

Three issues investors will have watch closely in the coming months:

New Competition: With Research In Motion (NASDAQ:BBRY), Nokia, and Microsoft making renewed efforts to retake the smartphone space, how well will Apple Inc. (NASDAQ:AAPL) and Google fend off this new competition?

Margins: How much will handset manufacturers have to cut prices to attract late adopters?

Ad Monetization: Will smartphone companies be able to successfully monetize advertisements?

Robert Baillieul has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.
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