'Quadroid' Looks to Become Gen-Y's 'Wintel'
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Overall Analyst Rating:
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EPS Growth %: +7.9%
Overall Analyst Rating:
NEUTRAL (
Down)Dividend Yield: 2.2%
EPS Growth %: +7.9%
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Like Tango and Cash, Thelma and Louise, and Ebony & Ivory, QUALCOMM
(Nasdaq: QCOM) and Google's (Nasdaq: GOOG) Android operating system have made a formidable duo, which might even become this generations version of Microsoft (Nasdaq: MSFT) Windows and Intel's (Nasdaq: INTC) "Wintel."
Or so it might seem at first glance.
A CNN Money article outlines how the combination of QCOM and Android, lovingly called 'Quadroid' (though we prefer 'AnCOMM'), will be come the next Wintel of the 1990's. Indirectly, they believe that this is going to cost Apple (Nasdaq: AAPL) some sales and market share.
CNN says that, because the software and hardware is the same on every phone, differentiation between the manufacturers is a difficult task.
OLED, larger screens, kickstands, keyboards, no-keyboards...all an attempt to draw in the consumer.
The same thing happened in the 1990's, when company's like Dell (Nasdaq:
DELL), Gateway, and Alienware had to distinguish themselves through design, marketing, and customization. Not a bad idea, after all, who wants the same cookie-cutter PC as their neighbor?
But the open source of Android will affect manufacturers differently, opening the doors for several companies whose names had never been heard in the US as a household name (HTC, Kyocera, LG) are now producing viable competitors to Motorola and others.
CNN says that research firm PRTM thinks that all manufacturers will be whittled down to "a small number of very, very big companies that have the resources to execute, with practically no room for error -- just like what happened with PC companies."
But the growth of Android is somewhat of a phenomenon in the world of mobile devices, much to the chagrin of Research in Motion (Nasdaq: RIMM), Nokia (NYSE: NOK) and Apple. Gartner research notes that Android market share has grown from 3.5% in the world in Q309 to 25.5% in Q310.
No doubt that growth was helped by Verizon Wireless' (NYSE: VZ) (NYSE:
VOD) relentless pushing of the system, and leaving Palm to be scooped up by Hewlett-Packard (NYSE: HPQ) earlier in the year. Additionally, trouble at AT&T (NYSE: T) last last year, and into this year, with iPhone users bogging down their network caused many to explore this brand new operating system from Google.
Arguments can be made that the industry my turn away from CDMA as 4G emerges as a new standard. Additionally, QUALCOMM's chips aren't just in Android-based devices. For example, their Snapdragon chip will be used to power Microsoft's new Windows Phone 7.
CNN also says that Nokia, RIM, and Apple are still holding strong with their integrated architecture business model. No one will surely deny the power than Apple, and CEO Steve Jobs, have over the mobile and media markets. Additionally, the barrier to entry into the market is rather low, and a rebounding economy might provide a few surprises over the next several years.
But given the tightness that Apple has on its developers, and the continued adaption of Android as new devices are produced, the new "Quadroid era" may not be as far-fetched as one might think.
(Nasdaq: QCOM) and Google's (Nasdaq: GOOG) Android operating system have made a formidable duo, which might even become this generations version of Microsoft (Nasdaq: MSFT) Windows and Intel's (Nasdaq: INTC) "Wintel."
Or so it might seem at first glance.
A CNN Money article outlines how the combination of QCOM and Android, lovingly called 'Quadroid' (though we prefer 'AnCOMM'), will be come the next Wintel of the 1990's. Indirectly, they believe that this is going to cost Apple (Nasdaq: AAPL) some sales and market share.
CNN says that, because the software and hardware is the same on every phone, differentiation between the manufacturers is a difficult task.
OLED, larger screens, kickstands, keyboards, no-keyboards...all an attempt to draw in the consumer.
The same thing happened in the 1990's, when company's like Dell (Nasdaq:
DELL), Gateway, and Alienware had to distinguish themselves through design, marketing, and customization. Not a bad idea, after all, who wants the same cookie-cutter PC as their neighbor?
But the open source of Android will affect manufacturers differently, opening the doors for several companies whose names had never been heard in the US as a household name (HTC, Kyocera, LG) are now producing viable competitors to Motorola and others.
CNN says that research firm PRTM thinks that all manufacturers will be whittled down to "a small number of very, very big companies that have the resources to execute, with practically no room for error -- just like what happened with PC companies."
But the growth of Android is somewhat of a phenomenon in the world of mobile devices, much to the chagrin of Research in Motion (Nasdaq: RIMM), Nokia (NYSE: NOK) and Apple. Gartner research notes that Android market share has grown from 3.5% in the world in Q309 to 25.5% in Q310.
No doubt that growth was helped by Verizon Wireless' (NYSE: VZ) (NYSE:
VOD) relentless pushing of the system, and leaving Palm to be scooped up by Hewlett-Packard (NYSE: HPQ) earlier in the year. Additionally, trouble at AT&T (NYSE: T) last last year, and into this year, with iPhone users bogging down their network caused many to explore this brand new operating system from Google.
Arguments can be made that the industry my turn away from CDMA as 4G emerges as a new standard. Additionally, QUALCOMM's chips aren't just in Android-based devices. For example, their Snapdragon chip will be used to power Microsoft's new Windows Phone 7.
CNN also says that Nokia, RIM, and Apple are still holding strong with their integrated architecture business model. No one will surely deny the power than Apple, and CEO Steve Jobs, have over the mobile and media markets. Additionally, the barrier to entry into the market is rather low, and a rebounding economy might provide a few surprises over the next several years.
But given the tightness that Apple has on its developers, and the continued adaption of Android as new devices are produced, the new "Quadroid era" may not be as far-fetched as one might think.
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