The big players
Google’s Android controls 75% of the global smartphone market, which is up sharply from 59.1% in the same period last year. In Q1 2012, there were 90.3 million smartphones running on Android shipped, and there were 162.1 million for Q1 2013. This explosive growth is why Google could hit $1,000 a share by the end of 2013.
Apple Inc. (NASDAQ:AAPL) had 23% of the smartphone market in Q1 2012 and by Q1 2013 that had dropped to 17.3%. This drop is largely due to Apple Inc. (NASDAQ:AAPL)’s lackluster iPhone 5 upgrade (which wasn’t viewed as evolutionary as compared to other iPhone upgrades) and the delayed iPhone 6 upgrade.
The iPhone 6 is due to come out this fall, with the possibility of a cheaper iPhone as well for emerging markets. The iPhone 6 and a cheaper iPhone could definitely boost Apple’s market share and stock price and push Apple back over $500 a share. Growth in the tablet market could also provide a strong tailwind for both Google and Apple Inc. (NASDAQ:AAPL), as well.
Final thoughts
I’m bullish on one smartphone turnaround, but it’s not Research In Motion Ltd (NASDAQ:BBRY). Unless it can turnaround US sales and gain 5% of the market, it will continue to see declining revenue and more losses. There is only room for one turnaround play for the moment, and that is Nokia. Nokia has been steadily gaining market share in the US and in the world, and has a very good chance to take 5% of the global market by the end of the year. Microsoft Corporation (NASDAQ:MSFT) will also benefit from Nokia’s market share gains and will soon be making money off the venture, which could provide a sentimental boost for the company and boost its stock price a bit.
Google Inc (NASDAQ:GOOG) and Apple are both good investments, but Google Inc (NASDAQ:GOOG) has Apple beat. Google is taking more and more of the smartphone and tablet markets each day, it is moving into the wearable-technology market with Google Glass, it has a driver-less car, and it’s going to make a game console (which is Microsoft’s turf). In order for Apple Inc. (NASDAQ:AAPL) to start growing again, it needs to sign on more telecom companies, like China Mobile, to sell the iPhone and it needs to release a new iPhone.
Research In Motion Ltd (NASDAQ:BBRY) still has a small chance with the release of the Q10 in June for the US, but that chance is getting smaller and smaller with each day that passes. Once you start burning through your cash, you reduce the value of the company as the balance sheet deteriorates and investors lose hope.
The article Is It Game Over for This Smartphone Maker? originally appeared on Fool.com and is written by Callum Turcan.
Callum Turcan owns shares of Nokia and Microsoft. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Callum 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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