Apple vs Google – Spoiler war

Q4 14E will be the most competitive ever for devices.

• Apple’s accidental launch of the new iPad Air 2 and iPad Mini 3 combined with Google’s attempt to steal its thunder with its new Nexus devices sets the scene for brutal competition in Q4 14E.
• First up was Apple’s accidental launch of its new iPads on the iTunes store.
• Screenshots of the new devices were accidently uploaded for a short period showing new devices that offer very little more than an evolutionary upgrade.
• The devices have added the fingerprint reader to the home button and are also expected to have faster processors and better battery life.
• Full details will be revealed at the event today at 6pm UK / 7pm CET / 1pm ET / 10am PT but it is clear that there are going to be no fireworks.
• Apple’s main driver for the next 2 quarters is going to be the iPhone 6 and demand for the device continues to be very strong.
• This leaves me comfortable with Apple in the short-term although my long term concerns are still there.
• At the same time Google has officially released its latest range of Nexus products.
• The Nexus 6 smartphone made by Motorola is a 5.9” monster with Android L and all of the other high end specifications.
• The device will sell for $649 compared to $749 for the iPhone 6+ and will be available through all 4 main US operators.
• The Nexus 9, made by HTC, is a 8.9” tablet that will start at $399 and be available from next month.
• The aim of these devices is not to sell huge volumes but to serve as a roadmap for other device makers to highlight what is possible using Google Android.
• Google also launched a set top box called the Nexus Player that interestingly uses an Intel chip rather than one powered by ARM.
• Given that Intel is virtually giving its chips away and compensating manufacturers for the added cost needed to use Intel rather than ARM, this looks like a cheap way to get good performance at low cost.
• Android TV is a version of Android that is optimised for the large screen but because it is running Intel rather than ARM, it is very limited in terms of apps. that are available.
• This device looks a lot like PlayStation TV which is hoping to piggy back on the success of the PS4 and the resurgence of Sony in gaming.
• The device industry line up for the all-important Q4 14E selling season is now in place and it looks very much like it is Apple’s to lose.
• At the high-end, Apple has the most fun and easiest to use ecosystem and now that it has large screen devices, it is the ecosystem that everyone wants.
• At the low end the Chinese and Indian vendors are making inroads by selling reasonably specified devices at very low prices.
• It seems very unlikely that they are making any money and this combined with the resurgence of desirability of Apple devices is squeezing all other handset makers from both ends.
• Samsung has had a dreadful Q314A and Q414E looks like it will be even worse.
• The other handset makers are faring no better and the outlook remains pretty grim when it comes to profitability.
• In the hardware space there remains only one name to choose: Apple.
• In the ecosystem, both Google and Microsoft look attractive.