Taking a Look at Apple's Competition

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July 23 (Bloomberg) -- OIOO CEO Stephen Dukker, Mac Observer's Dave Hamilton and Bloomberg's Cory Johnson discuss their outlook for Apple Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

You have said that we live in apple's distortion field.

What do you mean by that?

I think we see the biggest change in device technology.

Tablets cost 300 or $400 with an occasional cheap one at $200. you have not seen nothing yet.

Coming this october, there will be a really wonderful android and the hardware coming from top-quality manufacturers in the far east at price points basically from $100 to 100 $49. that is the new reality of mini tablets, and soon-to-be in the smartphone and larger tablet formats.

Stephen dukker, you have worked for radioshack and comp aq.

From a vendor perspective, what do you take away from apple's business model?

It is not just a hardware.

Hardware ultimately commoditize is.

The key is leveraging the ecosystem, because apple has created such a cash machine in all of the stuff surrounding the tablet and the smartphone.

Even if they were giving away the hardware, they would have a 10- year forward-looking earnings that would be spec tabular for the momentum -- that would be spectacular for the momentum of the device.

We are headed to a point where that is really where the business is and we are getting to low-margin, very high volume space.

Cory johnson, can you comment on this topic?

The margins will continue to drop in the price will continue to shrink.

Yes, we have seen this with the iphone prices falling and the margins falling.

I think we have seen that.

It is really low for a company that was doing 40% two years ago to be 26%. again, they sold 140 million iphones in the last year.

Let's not feel too sorry for them.

But it is changing and you can see it in the numbers.

Dave hamilton, what would it take to get you to use an android device?

Is it about price or the technology and the hardware?

It is definitely the technology and the hardware.

There is a lot about android i like.

It is much more open -- what do you mean when you say it is more open?

Application developers have more freedom on android than they do on ios.

Apple is very strict about the bounds that after the first need to live within.

Android, those rules are a lot looser.

That allows for things to happen a lot better and for things to into great with the os better.

But it comes at the price of potentially crashing the phone or causing instability in different places.

It is just two different mindsets.

Apple has always been of the mindset, you know, we want to keep the app volcker's in a box and that is that.

-- the app developers in a box and that is that.

Android, not so much.

Keeping the developers in a box.

Does apple need to change its strategy?

I'm not sure.

Apple has always been tremendously successful at doing what apple does.

When they going into the market, like microsoft did, that is not their business.

Far be it for me to suggest they change their mind.apple but to dave's comment, effect is two years ago android was weak.

Last year it showed potential.

This year, android is well- differentiated, makes no apologies to ios, and to the sense that it is somewhat different from ios, of course it has done a great job of segmenting the more sophisticated user -- although you can "simplify" the android experience if you need to -- and the desktop experience, which is something ios has never provided.

Generally, with apple shipping the ios 7, android has become a more modern operating system than ios and one that bridges the gap between the laptop, the tablet and the cell phone.

I think android's ecosystem has nowhere to go but up and the seven percent market share is really just beginning.

This text has been automatically generated. It may not be 100% accurate.


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