Whoever Wins at Mobile World Congress This Week, Apple Loses

I'm tired of beating up on Apple (NASDAQ: AAPL  ) . Partly because I own shares -- so, naturally, I want the Mac maker to win -- but also because I think the stock has sold off too far, too fast.

Yet as a commentator and investment analyst, it's my job to look at everything that benefits and threatens the stocks I follow, and there's a lot threatening the Mac maker right now. We'll get a closer look at some of the biggies at next week's Mobile World Congress in Barcelona, Spain.

Two devices I think will garner considerable attention and consumer interest:

  1. Samsung's Galaxy Note 8. Less a "phablet" and more a competitor to the iPad Mini, the new Note has been spotted in leaked photos posted by the good techies at SlashGear. We'll have to wait for an official announcement to get a full list of specs. I'm nevertheless expecting a warm reception from fans who love Samsung's larger-screen iProduct alternatives.
  2. LG's Optimus G Pro. The Android phablet that pays unintended homage to the leader of the Autobots in the Transformers comes with a 5.5-inch screen capable of playing full 1080p HD video. There's also support for LTE wireless broadband, a quad-core processor, and 32GB of storage with room for 32GB more via an external slot. Pricing hasn't been announced, but it's unlikely to be much more than a comparable Galaxy Note phablet.

Chipmakers are also pushing boundaries. NVIDIA (NASDAQ: NVDA  ) plans to show off the new Tegra 4i chip, which promises fast processing in a power-efficient package that includes LTE wireless broadband. ST-Ericsson will show off its own quad-core chip called the NovaTHOR L8580 operating at a breathtaking 3GHz. All signs point to an abundance of high-powered handsets to choose from.

In years past, Apple could rely on a distinction between devices for business and pleasure. No longer. Open standards and the Web have sharply reduced the sorts of platform-specific incompatibilities that forced companies to issue standardized devices. Workers now choose what they want, and the IT department adapts.

At one time, this dynamic favored Apple at BlackBerry's (NASDAQ: BBRY  ) expense. The company formerly known as Research In Motion saw its share of market roughly cut in half over the past four years. Now the iPhone must compete to stay relevant amid a market crowded by beautiful new handsets with extra-large screens.

Should investors be concerned? That's going too far, but large-screen alternatives such as Samsung's Galaxy Note are proving popular among a significant portion of the population. ABI Research says consumers snapped up some 83 million of these "phablets" last year and are on track to purchase another 150 million more in 2013, accounting for 18% of all smartphone shipments.

Apple isn't likely to make a phablet of its own. Not with CEO Tim Cook comparing Microsoft's tablet-cum-laptop Surface to a flying car that doesn't exactly soar. Will it matter? I still think Apple's iOS platform is developers' top choice, which gives Apple a distinct and (for now) defensible advantage.

But that's also just my take, and you may have a different view. Please share your thoughts in the comments box below. And if you're interested in following Apple more closely, I urge you to take advantage of our newest premium research service. Motley Fool senior technology analyst and managing bureau chief Eric Bleeker will help you to understand whether Apple is a buy right now and what opportunities are left for the company (and, more importantly, your portfolio) over the long term. Click here now to get instant access to his latest thinking on Apple.


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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 24, 2013, at 4:36 PM, Jjkiam wrote:

    How exactly do you conclude that Apple is losing the enterprise business it has been growing exponentially over the past year? If anything the opposite is true that as more companies have adopted BYOD policies this has favored Apple. You imply that Apple relied in the past on companies restricting their employee devices when the exact opposite is true.

  • Report this Comment On February 24, 2013, at 6:22 PM, TimKnows wrote:

    I find it difficult to understand why you still own AAPL when you know they have nothing new to offer consumers for all of 2013? BlackBerry is taking market share away from Apple every day now and Android is kicking their butt too. This is going to be a terrible year for AAPL.

  • Report this Comment On February 24, 2013, at 7:53 PM, croggsbooks wrote:

    TimKnows, looking at your Activity, is it safe to assume that you are short Apple, Long BlackBerry, and hold no other positions? It seems like you only comment about how great BBRY is and how crappy AAPL is.

  • Report this Comment On February 24, 2013, at 8:47 PM, singaporenick wrote:

    Tim Knows comments are certainly very ignorant,unless he's just trying to promote a short position.

    How does he know Apple has nothing to offer in 2013? Stupendously unintelligent comment

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