Tomahawk, WI 11/15/2013 (BasicsMedia) – Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) are outdoing each other and the race seems to be about who will first hit the trillion dollar market value. AALP has $472.35 billion in market cap while GOOG comes in closely at $345.37 billion. At this point, Apple Inc. (NASDAQ:AAPL) is leading Google Inc. AALP makes smartphones, tablets and PC and mobile operating system. Google Inc is more into internet search service, mobile operating system and lately smartphone. However, Apple Inc and Samsung dominate the smartphone business with a verity of devices.

Recent data show that Apple Inc earns about 56% of the smartphone market profits with its line of iPhones. The closes competitor is Samsung. Surprisingly, in terms of sales, smartphones running Google’s Android Operating system out sell Apple smartphones. Android controls about 81% of the smartphone sales.

Android leads in shipment but Apple keeps the profits

Apple Inc. (NASDAQ:AAPL)’s smartphones market share is roughly 12%, against 81% held by Android according to the third quarter data. But even with such a marginal hold on the smartphone market and its devices selling at higher prices than competition, Apple Inc. (NASDAQ:AAPL) managed to earn more than half of the smartphone profits in the quarter. From this, two things are sure; one, that AAPL doesn’t care how many Android smartphones are shipped; two; that customers have faith in Apple smartphones that they are willing to pay a premium to get them. For a company that is still trying to come to terms with the loss of its founder Steve Jobs, this market authority in terms of profits is an opportunity to build on. However, I think that considering the dynamic nature of the digital market, Apple Inc. (NASDAQ:AAPL) should make hey when the sun is still shining. This is to say that while the market still has a lot of faith in its devices and the competition also growing by each passing day, the Cupertino-based company needs to go for a bigger market share. Raising its current hold of about 12% to around 25% will be very vital for its profitability.

Cheap smartphones are a threat to AAPL and Samsung

Apple Inc. (NASDAQ:AAPL) and Samsung have their eyes set on the high-end market. Indeed Apple’s devices are themselves high-end considering their features and specs. However, smartphones market is increasingly becoming flooded with cheap phones coming mainly from China and targeting the Chinese buyers and the global emerging markets. These cheap smartphones offer nearly everything that an Apple Inc. (NASDAQ:AAPL) or Samsung smartphone can offer. While customers still have faith on iPhones coming out of Cupertino factories, there is no doubt that these cheap smartphones are threatening the existence of the giants.

In order to continue in positive profits going forward, I think time has come for Apple Inc. (NASDAQ:AAPL) to increase its market penetration, more so in the emerging markets where real dollar is in the smartphone market. Emerging markets like Africa, Asia Pacific and South America have proven without a doubt that they can help companies rake in untold profits. Actually, several companies across the industry are taking these markets serious and the next big smartphone market war will be fought in these emerging markets.

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