Impact of Google’s Moto X Android Mobile on Apple iPhone / Samsung Galaxy

Moto X SmartPhone - Impact on Apple and SamsungGoogle launched announce its first jointly developed smartphone with Motorola, the Moto X. Given Motorola management’s recent comments regarding a gap in the market between low-priced feature phones and high-end smartphones, we believe Google’s strategy could have two notable implications: (1) the Moto X could launch with an aggressive gross margin profile where, in-synch with the Nexus 7 strategy, they seek to sell the phone at a breakeven gross margin, which could help Google take share, or (2) Google could launch Moto X with a margin profile comparable with competitors’ offerings currently but potentially take steps to drive industry margins down over time.

Potential impact on Apple with the launch of Moto X
Looking beyond the initial Moto X launch, Apple’s powerful platform-centric strategy and its significant installed base loyalty, part of Apple’s competitive edge has come (more…)