For several years now, Apple (AAPL) seems to have dominated the smart phone space; especially with regard to business men and women who use smart phones. However, there’s a new player in the enterprise smart phone game that’s really starting to step on the toes of Apple (AAPL). That new player is Google (GOOG)! Google (GOOG) recently released a string of enterprise tools designed for use with phones that run on the Android operating system. Today, we’ll talk about the tools that Google (GOOG) released, how they’re a hypothetical kick in the back to Apple (AAPL), and what we’ve seen in both asset’s stock prices as a result.
Google’s New Enterprise Tools
As iPhone and related device profits have driven Apple (AAPL) to become the world’s most profitable company in the last quarter, Google (GOOG) has decided that they want a piece of the action. The new enterprise tools are how they plan to do so. The new set of tools are part of a new product line called “Google (GOOG) for Work”. The new tools offered include…
- Work Profiles – Because many companies use the same mobile device for several users, Google (GOOG) has announced that in Android 5.0, multi-user support will be offered. This ensures that project work data is isolated and private.
- Android for Work App – The Android for Work App gives people a way to send and receive secure emails, manage a calendar, manage documents, and browse approved work apps.
- Productivity Tools – Google (GOOG) has enhanced the mobile experience with regard to email, contacts, and calendars in an effort to assist its users in picking up productivity.
There are far more new tools coming as well, but I think that at this point, you get the idea of what the suite offers. If you’d like to learn more about the Google (GOOG) for Work tools, check out the official blog here.
Why This Is Bad News For Apple (AAPL)
Apple (AAPL) is a massive company and there aren’t too many companies out there that are even big enough to get under Apple’s skin, but Google (GOOG) is. In the world of smart phones, the hierarchy is simple… first Apple (AAPL), then Google (GOOG), then everyone else. If you don’t believe me, ask yourself what operating system your phone runs on. Nine times out of ten, the answer will either be iOS or Android OS.
With that said, if one of the little guys were to try and step on Apple’s toes with enterprise tools, they’d either smash them in the market or buy them out. Unfortunately for Apple (AAPL), Google (GOOG) isn’t small enough to buy and is willing to put up a fight in the market. Essentially, Google (GOOG) deciding that they’re going to slide into Apple’s parade and take a piece of the pie in the smart phone game is Apple’s biggest nightmare because there’s almost nothing they can do about it other than race to innovate bigger, better, and more efficient tools.
The news broke on Wednesday, February 25th, and there was definitely quite the reaction in the market. Here’s a quick breakdown of both stocks.
- Apple (AAPL) – Apple (AAPL) fell slightly in morning trading Wednesday as the result of iTunes patent issue they are facing and seemed to stabilize around $131.20 per share for a while. However, as the news of Google (GOOG) releasing enterprise tools for Android broke, the fall got much, much worse. After a steep end of day fall, Apple (AAPL) closed at $128.79 per share. While the stock continued to fall in early trading today, it seems to be back on the uptrend. The stock is currently trading just above $130 per share.
- Google (GOOG) – On the other hand, Google (GOOG) stocks did very well. After starting the day at just over $535 per share and went on an immediate incline. By the end of the day yesterday, the stock was over $543 per share and it continues to climb today. Currently, Google (GOOG) stock is trading just under $554 per share.
What Are Your Thoughts
Do you think that this is as big of a problem for Apple (AAPL) as I do? Let me know in the comments below!