Thursday 8 August 2013

Apple, Samsung Not the Two Losers From Moto X

Apple, Samsung Not the Two Losers From Moto X

BY Bret Kenwell|08/08/13 - 07:34 AM EDT

Stock quotes in this article: AAPLGOOGNOKMSFTBBRY 

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NEW YORK (TheStreet) -- From all seams, Google's (GOOG_new smartphone, the Moto X, looks pretty sweet. While I'll admit that my iPhone has grown on me over the past two years, it's a situation that is bound to change one day and the Moto X is the first smartphone I've seen where I have actually considered it.

Google reportedly plans to spend about $500 million in marketing for the phone, quieting those who questioned whether or not the company was truly going to stand behind its new hardware.

Assuming the phone acts as well as it looks, the marketing push should really help fuel sales. I expect the phone to do well, but I don't expect it to come at the expense of Apple (AAPL_orSamsung.

Will some people avoid the next iPhone and forego the Galaxy S4 in favor of the Moto X? Of course. That's expected. But it's likely not the game-changer that will turn the smartphone market on its head.

Instead, Nokia (NOK_), Microsoft (MSFT_and BlackBerry (BBRY_will be the ones that feel the pinch. The Moto X, which starts at $199, could all but be the nail in the coffin for the struggling smartphone makers. If the iPhone and Galaxy remain the top two smartphones, the Moto X could become the third juggernaut of the group.

The Microsoft-Nokia partnership, which was meant to boost benefits to both companies, is falling flat. The Lumia has failed to gain any significant traction and as rival tech companies come out with better products, the task will not get any easier.

It's also quite troublesome for Canada-based BlackBerry as well. Retailers have recently slashed prices on the Z10 due to lackluster sales and management has shown during the company's most recent earnings report that shipments are not as high as they had hoped.

The pending success of the Moto X could be the additional ammo that's needed for those who are calling for BlackBerry's CEO Thorsten Heins and Microsoft's CEO Steve Ballmer to be dismissed from the respective companies if they ever plan on being serious contenders again.

 

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