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Will Apple Be the Death of Sony?

By Rick Munarriz – Updated Apr 6, 2017 at 1:21PM

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Sony seems to be in Apple's line of fire no matter where it aims.

We're now apparently about a month away from the official launch of Apple's (Nasdaq: AAPL) new iPhone.

The lost/stolen prototype may steal some of the Cupertino thunder, but at least the one thing that everyone can agree on is that the fourth generation of Apple's popular smartphone is going to pack some serious camera upgrades.

There's the built-in flash and improved five-megapixel camera. MacRumors.com is also reporting that the new mobile operating system will support high-def video at 720p.

In other words, Apple may be about to take a serious bite out of the entry-level digital camera market. This is bad news for Cisco's (Nasdaq: CSCO) Flip and Sony's (NYSE: SNE) Webby. The front and back cameras -- ripe for video chat and videoconferencing -- would probably dent Logitech (Nasdaq: LOGI) as well.

It's also pretty much a foregone conclusion that Apple's next iPod touch update will include a camera, because even the cheaper Apple nano is equipped with one.

Naturally, this may hurt plenty of camera companies, but let's bring up Sony again.

Poor Sony. It seems as if everywhere Apple points, Sony happens to be in the line of fire.

  • Apple's iTunes offers digital video downloads that sidestep the need for optical discs. Sony sells DVD and Blu-ray players.
  • Apple's iPhone and iPod touch -- and now iPad -- play thousands of free or dirt cheap video games. Sony's PlayStation3 console and PSP handheld require brisk software sales of licensed titles.
  • Apple's monitors continue to get bigger, and even the iPad is a worthy platform for digital video. Sony sells Bravia TVs.
  • Apple's iBookstore program for the iPad is winning critical praise for its colorful content. Sony's e-book reader was already having a hard time against Amazon.com's (Nasdaq: AMZN) Kindle.

Life would be so much easier for Sony if Apple didn't exist. Unfortunately, it does -- and that seems to threaten Sony's existence at every evolutionary turn.

Will Apple really be the end of Sony? Share your thoughts in the comments box below.

Apple and Amazon.com are Motley Fool Stock Advisor picks. Logitech is a Motley Fool Hidden Gems pick. Motley Fool Options has recommended a write-covered-calls position on Logitech. The Fool owns shares of Logitech. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz has been an Apple fan for ages, but he has plenty of Sony appliances around the home as well. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

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Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.77 (0.23%) $0.34
Sony Corporation Stock Quote
Sony Corporation
SONY
$66.70 (-2.53%) $-1.73
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$115.15 (1.20%) $1.37
Cisco Systems, Inc. Stock Quote
Cisco Systems, Inc.
CSCO
$40.58 (-0.20%) $0.08
Logitech International SA Stock Quote
Logitech International SA
LOGI
$44.56 (-1.24%) $0.56

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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