October 25, 2010

Android and RIM squeezing Apple Inc.

TECHNOLOGY - Google Android's software is now on 95 SmartPhone handsets, up from 60 in May. Revenue from mobile advertising is boosting Google's profit line and benefiting phone manufacturers like LG and Motorola because they don't have to pay to create their own operating systems for their SmartPhones.

Mobile advertising is still a very new idea, but Google is trying to cash in on an untapped market where competitors Microsoft, Yahoo! and Facebook will be unable to compete in without creating and marketing their own SmartPhone operating system. By being the only OS which is widely used Google has beat all the competitors to a market which analysts believe will explode with potential.

In the last 4 quarters Google had $27.6 billion USD in advertising sales. Google estimates that its mobile ad sales will break $1 billion in 2010.

And then there is the matter of YouTube, which is increasingly coming with ads before the video loads. Evidently Google is close to creating a monopoly on advertising. Its surprising that Google hasn't tried buying up television networks as part of its expansion.

Google recently purchased Teracent and Invite Media.

Research In Motion Ltd. demonstrated their new PlayBook tablet computer at a conference yesterday in L.A., scrolling through images and displaying video on the device.

The demonstration showed off how powerful, versatile and overall better the PlayBook is and how it out performs the Apple iPad, making the Playbook the "top pick" of RBC Capital Markets analyst Mike Abramsky.

The PlayBook was first unveiled last month and will go on sale early next year. Unlike the iPad, the PlayBook can handle Flash technology, is more versatile, has front and back video cameras. The Apple iPad can't handle Flash videos or animation, including YouTube.

Steve Jobs, CEO of Apple, is refusing to allow Flash video compatibility on the iPad because of rivalry with Google-owned video website YouTube.

With both Google and RIM working from opposite sides, Apple is looking more and more obsolete.

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