Another analyst report is seeking to calm Apple (NASDAQ:AAPL) investor fears, with Goldman Sachs concluding after a detailed that Google (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) will struggle in front of the iPhone maker in the days to come. According to the report, titled “Clash of the titans,” Google and Microsoft are challenged because spending on complimentary products and services that go along with a mobile platform is rising, and Apple continues to lead.
Why Does Apple Hold an Advantage?
“We believe loyalty to [Apple’s] ecosystem is only increasing and this should translate into continued growth going forward,” the report says, according to CNET. “In particular, we see the potential for Apple to capture additional growth as existing iOS users move to multiple device ownership.”
Our 20-page proprietary analysis of Apple’s stock is ready. Click here to get your Cheat Sheet report now.
With Apple launching devices like the iPad mini and possibly a lower-priced iPhone in the future, its smartphone “has room to rise much further” and “its dominant tablet market share appears to be more resilient than most expect.”
CHEAT SHEET Analysis: Excellent Relative Performance Versus Peers and Sector
One of the core components of our CHEAT SHEET investing framework focuses on the company’s performance when compared with rivals. How does the competition stack up?
Google is facing a problem because “ share loss leads to smartphone share defection,” the report says, predicting that Android tablet share (EXCLUDING THE AMAZON (NASDAQ:AMZN) Kindle Fire) will drop to 21 percent next year from 33 percent this year. Consequently, Android smartphone share will decline next year to 53 percent from 55 percent this year. “We ultimately see Google as trying to find a way to stay just as relevant in the new compute paradigm as it was during Web 1.0 and 2.0,” the report says.
Microsoft, meanwhile, is struggling already because its of “total consumer compute” has fallen from 93 percent in 2000 to a predicted 20 percent in 2012. The report expects the company to need to “sell roughly 5 Windows Phones or roughly two Windows 8 RT tablets to offset the loss of one traditional Windows PC sale.”
Among other tech companies, Facebook (NASDAQ:FB) and Samsung were also “well positioned” in the “context of platform adoption,” while Amazon was “straddling the line.”
What Could be the Impact?
Apple was yet to see any gains on the positive note on Thursday morning and was down 0.91 percent at $534.10 at 11:36 a.m. in New York. The Dow Jones Industrial Average and the S&P 500 were having a rough morning as well, down 0.12 percent at 3,229.11 points and 0.20 percent at 1,425.63 points, respectively.
Copyright Wall St Cheat Street All rights reserved.