Google Inc (GOOG) Throws Apple Inc. (AAPL) a Bone

Opportunity

At this WWDC we are likely to not only see a new version of iOS but also a new version of OSX. These two products will be evermore integrated through iCloud and more similar in interface and design. A simple redesign of its operating systems with an iPhone 5S will give Apple Inc. (NASDAQ:AAPL) its mojo back and could return the stock to its former glory. Apple’s hardware is always excellent, sleek in design with good battery life and an excellent camera. Android’s hardware is more hit and miss. With a sexy new operating system launched across all of its hardware by Christmas, Apple will have something more than just an upgraded iPhone to sell consumers.

More than just Google

Apple Inc. (NASDAQ:AAPL) faces real competition on multiple fronts. Microsoft’s Windows Phone, which it has pumped billions of dollars into over the past few years, finally appears to be showing some signs of life. Microsoft shipped 7 million Windows Phones in the first quarter of 2013, which gives it 3.2% of the market. While that seems like nothing compared to Apple’s 17% or Google Inc (NASDAQ:GOOG)’s 75%, it’s close to triple the market share of where Windows Phone was a year ago.

The launch of Windows 8, the desktop OS companion to Windows Phone, was not a huge success and Microsoft will soon be attempting to rectify this with the release of Windows 8.1. 8.1 will include some updates as well as the return of certain features like the start menu that users found missing in Windows 8. Microsoft is desperately trying to save Windows 8 from the same fate as Vista, especially as Windows 8 is more than just an operating system–it is a unified platform, designed to compete in every form factor with offerings from Google Inc (NASDAQ:GOOG) and Apple.

An end to complacency

Consumers get overwhelmed with technical data and bug fix updates, but a design refresh is very noticeable, as is a new piece of hardware. Apple Inc. (NASDAQ:AAPL) especially, as it sells high end devices, should put more focus on keeping its operating system fresh and new. It doesn’t face a large fragmentation issue nor is it below 5% in market share. Thus its focus, with a maturing ecosystem and a maturing market, has to be on maintaining its place in the market. For that it must focus on highly visible updates to its entire product line.

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

The article Google Throws Apple a Bone originally appeared on Fool.com.

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