What Stops Apple Inc. (AAPL)’s Peers?

Do you ever wonder to yourself why more companies don’t jump on board and compete head to head with Apple Inc. (NASDAQ:AAPL)? After all, there are plenty of profits to go around in the tech space. From smartphones to tablets among other devices, there is no reason to believe these markets are going to die anytime soon.

With all this in mind, there are only a few major competitors to Apple. For example, Samsung and Apple are top dogs in the smartphone industry. As you move into tablets, you find a few additional competitors such as Amazon.

Even then, one has to wonder why Apple Inc. (NASDAQ:AAPL) doesn’t feel more heat from outsiders.

One reason is simple: money. Apple has billions of dollars on tap while other companies struggle to keep its finances on the straight and narrow. This obviously puts Cupertino at a huge advantage.

Along with its financial situation, Apple Inc. (NASDAQ:AAPL) has built a brand that is among one of the most well known in the world. This alone goes a long way in helping the company achieve success with almost every product it rolls out.

Digitimes recently spoke with Singapore-based Gajah International Pte Ltd (Gajah) CEO Yong Guan Jer. Gajah International is a “total solution provider that engages in the design and development of OEM/ODM consumer electronics products, as well as a comprehensive source for e-content management and delivery systems.”

You may think that a company like this would be a natural competitor to Apple Inc. (NASDAQ:AAPL). However, nothing could be further from the truth. They may be dabbling in the same space, but not likely to take on Cupertino any time soon. Here is a brief excerpt from the article:

“We no longer do MP3 players, because MP3, as well as GPS, has become just a function or application that is incorporated into smartphones. But we are not developing mobile phones as we don’t have some of the cutting edge technologies in the smartphone sector with which we could compete against Samsung or Apple.”

As you can see, there is one main reason why they are staying away from the smartphone space: they don’t have the ability to develop the “cutting edge technologies” necessary to compete with Apple Inc. (NASDAQ:AAPL) among others.

Competition is sure to stiffen for Apple in the future, but it will come from a select few companies.