Has Google Given Up on Trying to Beat Apple?

For years, smartphone makers just wanted to beat Apple (NASDAQ: AAPL  ) . After the iPhone shook up the industry, claiming numerous casualties along the way, the Mac maker set a new bar to beat. For the most part, the title of "iPhone killer" has remained elusive to most OEMs. Samsung is perhaps the only company to profitably present a viable challenge.

Following its acquisition of Motorola, it seemed inevitable that Google (NASDAQ: GOOGL  ) would try to beat Apple at its own game by offering a device with integrated hardware and software. That would be a stark contrast to Android's current modus operandi, which pairs Google's software with a wide range of hardware partners. Reports surfaced last year that Googorola was working on an "X Phone" that hoped to be an iPhone killer.

However, Google may have abandoned the X Phone project, according to Chinese telecom analyst Sun Chang Xu, who posted the rumor on her Weibo blog. The company hasn't axed the device altogether, but instead has reportedly stepped out of the development process directly and turned it over to the Motorola subsidiary.

By Google's own admission, Motorola's products aren't great when left to its own devices and the search giant is anxious to "drain" out all the mediocrity in Moto's pipeline. Leaving Motorola in charge of the X Phone, which had high hopes of challenging the iPhone, might be a sign that Google has given up.

On the other hand, the rumor is a little sketchy, particularly in the context of Google Chairman Eric Schmidt's recent comments that Motorola's upcoming gadgets would be "phones-plus," whatever that means. Motorola's design chief had also dropped a hint that the company was working on stock Android devices that aren't enormous, which would likely sell well as there's considerable interest for stock Android.

Google may have "clearly" beaten Apple strictly in market share, but profit share and device integration will always be Apple's claim to fame.

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.


Read/Post Comments (3) | Recommend This Article (3)

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 May 11, 2013, at 2:06 PM, mpapile wrote:

    As far as an iPhone killer, there have been technologically better phones and also people have been buying more non iPhones. I do not think anyone can hope to have the margins Apple is currently enjoying by bilking carriers for a per month royalty per customer. Even investors in Apple know that this is unsustainable. The mobile market is super competitive now, and competition drops margins. I think Apple's carrier subsidy is going to be under huge attack now that there are other options.

  • Report this Comment On May 11, 2013, at 5:24 PM, JoshuaJoshua wrote:

    Google shouldn't worry about Apple that might be wrotten at the core !

  • Report this Comment On May 11, 2013, at 7:31 PM, hembreeder wrote:

    It is written that Apple is wrotten to the core. Your mother was wrotten to the corps, but she was great to the sailors and Marines.

    Ripeness is all.

    I'm buying more Apple.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2424830, ~/Articles/ArticleHandler.aspx, 10/20/2014 10:19:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement