MacNN | Goldman Sachs: Google, MS ‘challenged’ by Apple threat
Mac News Network View: Standard | Headlines | Categorized | Slim
Mac News Network
Mac News iPod News Reviews Forums

Desktop Headlines
Goldman Sachs: Google, MS ‘challenged’ by Apple threat
Thursday, December 13, 2012 @ 5:13am

A recent study by Goldman Sachs says that both Google and Microsoft can expect to face an even more dominant Apple in the years ahead. Contrary to Google chairman Eric Schmidt’s assertion that that Google is ‘winning the war’ against Apple’s iOS with its Android OS, the Goldman Sachs report suggests that Apple’s customer loyalty will place Google and Microsoft at a significant competitive disadvantage. Apple currently leads customer spending on ‘complements,’ products and services that sit on top of the platform, which is only likely to continue to rise leading to additional iOS device product purchases.

"We believe loyalty to the company's ecosystem is only increasing and this should translate into continued growth going forward...,” states the report. “In particular, we see the potential for Apple to capture additional growth as existing iOS users move to multiple device ownership." In the coming years, Goldman Sachs sees Apple, Facebook and Samsung as being well positioned. By comparison, Amazon is “straddling the line” while Google and Microsoft are “challenged” in ongoing platform adoption. Although Google has made some inroads with its own co-branded tablet devices, Android market share will drop to 21 percent next year, down from 33 percent this year. “Tablet share loss leads to smartphone share defection. We ultimately see Google as trying to find a way to stay just as relevant in the new compute paradign as it was during Web 1.0 and 2.0,” the report concludes. Similarly, Microsoft’s continued troubles in gaining traction in the mobile computing space has seen its market share of “total consumer compute” drop in real terms from 93 percent in 2000 to around 20 percent in 2012 due to the surge in smartphone and tablet sales. According to Goldman Sachs, for Microsoft to turn this problem around in the short term, it “"would have to sell roughly 5 Windows Phones or roughly two Windows 8 RT tablets to offset the loss of one traditional Windows PC sale." The report concludes that with the arrival of the iPad mini and cheaper iPhones, Apple "has room to rise much further, and that its dominant tablet market share appears to be more resilient than most expect." [via CNET]

Comments on this Article
Print Friendly Version
Email to a Friend
Add MacNN to Your RSS Feeds
Buy from the Apple Store

Related Stories:

Today's MacNN Stories:
  • Apple: no real-world battery difference in Samsung, TSMC 6s iPhones - 5:16 PM EST
  • Daily Deals: Acer projector, Harman Kardon home theater, ZyXEL NAS - 3:21 PM EST
  • App Update: DockMod, App Tamer, BlueHarvest, more - 3:05 PM EST
  • Cook, Ive, Iovine speak out at different public events - 2:08 PM EST
  • Hard drive health monitoring tool DriveDx updated for El Capitan - 12:36 PM EST
  • MacNN Deals: Get these accessories to help you travel in style - 12:18 PM EST
  • New Magic Keyboard, Trackpad, and Mouse revealed in OS X 10.11.1 code - 12:14 PM EST
  • Briefly: New Twelve South BookArc, Brinell iPad Air 2 customization - 11:53 AM EST
  • Lightroom for iOS now free, does not require Creative Cloud plan - 11:33 AM EST
  • Hands On: OmniOutliner 4.3.2 (OS X) - 10:44 AM EST
  • Giveaway: Win a Nest prize package from MacNN Deals - 10:09 AM EST
  • Samsung Pay's parent company corporate network compromised - 9:47 AM EST
  • Harry Potter enhanced edition ebooks available exclusively on iTunes - 9:13 AM EST
  • Bowers & Wilkins unveils $700 Zeppelin Wireless speaker - 8:37 AM EST
  • One More Thing podcast episode 007: The name's Thing. - 8:17 AM EST
  • Update: Apple restoring iOS purchase history, problems remain - 8:11 AM EST
  • Hands On: Kitsound Manhattan Headphones - 7:24 AM EST
  • Amazon reportedly considering move into Internet TV business - 6:40 AM EST

    Today's iPodNN Stories:
  • So long, and thanks for everything! - 2:31 PM EST
  • Lizard Squad member convicted over 50,700 computer crime charges - 9:58 AM EST
  • Microsoft offers grants to universities for HoloLens research - 7:25 AM EST
  • LG Display starts mass production of AIT display panels for notebooks - 7:47 AM EST
  • Briefly: EE fined £1M in UK, Unofficial YouTube app on Android Wear - 11:14 AM EST
  • No comments posted on this story yet. Please post yours.
    Your Comments
    In order to post comments, you must be a registered member of the MacNN Forums and logged in. Please login with your MacNN Forums username and password.

    MacNN Forums Login:

    MacNN Forums Password:

    Not a member of the MacNN forums? Register now for free.