THE GOOGLE INVESTOR: Why Google Will Beat Apple In The Tablet Market

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Photo: Steve Kovach, Business Insider

GOOG Up With Tech
Markets are mixed as China’s slowdown is staggeringly bad despite sinking initial jobless claims. Shares of GOOG are up with tech. Investors continue look for Android momentum and monetization of smartphones and tablets along with direction for Motorola; the vision of Google TV with hardware partners; continued growth and monetization of YouTube; expansion of social network Google+; and progress in other initiatives (location-based services, mapping, Google Wallet, Google Music, Google fibre, etc.). The stock trades at approximately 12.0x Enterprise Value / EBIT.Who Is Apple Hurting More, Apple Or Google? (Forbes)
Google Maps is gone, now YouTube. Is Apple moving towards removing Google as the default search engine on its devices as well? If so, the financial impact would be material. It is possible that Apple’s move may backfire as it may alienate its users, and Google may benefit as it will now be able to take control of its YouTube app on Apple devices and optimise advertising dollars. These are precisely the kinds of moves that increase the risks in both stocks, but investors seem to understand the risk to a larger degree in Google’s case.

Why Google And Microsoft Will Beat Apple In The Tablet Market (Forbes)
Microsoft and Google are latecomers in a brutal industry that has already taken casualties (Hewlett-Packard, Cisco and Research In Motion). But, perhaps, they have learned a thing or two from the mistakes of those that came before it. Instead of taking Apple head on, each has decided to target its own specific niche within the tablet industry. Google targeted the market for 7″ tablets and enticed consumers with a significantly lower price point than the iPad. What does this mean for investors? Google should be able to take away market share in the tablet industry from Apple.

Google Loves The U.K. Because It Pays Nearly No Taxes (Daily Mail)
Despite bringing in a huge £395 million in U.K. revenue last year, Google only paid £6 million in taxes. The company’s tax affairs are again under the spotlight after its executive chairman Eric Schmidt admitted they ‘could pay more tax’ in Britain but do not have to. It is understood Google has managed to reduce its tax burden by funelling its turnover through Ireland, allowing them to pay corporation tax at a rate of 12.5% rather than the 20% in the U.K. It is, however, an improvement on 2010, when the company only paid £935,000 of tax and had until this year only paid tax totaling £8 million since 2004.

Android Still Crushes iOS On Platform Market Share (IDC via Mashable)
The race between iOS and Android is beginning to look like a blowout: A new report from IDC pegs market share for Android at 68.1% for all new smartphones shipped in the second quarter. Overall, the two platforms accounted for 85% of the smartphone market. “Android continues to fire on all cylinders,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends program. “The market was entreated to several flagship models from Android’s handset partners, prices were well within reach to meet multiple budgetary needs, and the user experience from both Google and its handset partners boosted Android smartphones’ utility far beyond simple telephony.”

Is There No One At Google Who Can Say “No?” (TechPinions)
Google amazes John Kirk at TechPinions and not in a good way. They are one of the largest, most powerful, most important companies on the planet, yet:

  • They spend the time and money to prepare a device that has glaring deficiencies
  • They take a lot of time from Google I/O to demo the device
  • They allow customers to pre-order the device
  • They then pull the device because they discover what everyone has known from the get-go, the concept that was Dead On Arrival (DOA).

Is there no one at Google who knows how to say “no”?

Google To Include Gmail In Search Results (Search Engine Land)
Google announced that a new “field trial” of Gmail results within Google Search results is available to incorporate email in the 100 billion searches it handles a month. This means you can search Google and find emails from your Gmail (not Google Apps) account directly in the search results. The Gmail results show on the top right section, collapsed neatly and ordered by relevance of your query. Google will also show relevant contacts and upcoming flights found in your email based on your search query.

Google+ Hangouts On Air Feature Is A Killer App (Duct Tape Marketing)
The recent On Air addition to Google+ Hangouts allows users to broadcast and record Hangouts to their YouTube channel. Meaning, the opportunity to create and record engaging video content just got a whole lot easier. It gives users a live streaming platform and automatic HD video capture. Google should broadcast its analyst days and earnings conference calls this way.

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