Google is launching the Moto X on ALL major carriers simultanesouly, with no major skinning to the OS. That's right, damn near stock Android on every major outlet in the most lucrative cell phone markets - with direct access through Google Play Store. Sans the playstore, the only other OEM to do this was Samsung with the Galaxy S4, and you see how that turned out. In addition, Google is about to spend half of Apple’s annual marketing budget promoting a single phone...
Google's Moto X advertising budget will be up to half a billion dollars, or half as much as the $1 billion Apple spent advertising ALL of its products in 2012. Of course, the current Android handset leader Samsung's marketing budget topped out at $4 billion in 2012. There's no big mystery as to why Samsung came out on top, eh?
Quoted from the quartz.com article linked above:
There is some industry precedent for getting ahead by spending heavily on advertising. Some have argued that Samsung’s dominance of Android smartphones and its market share victories against Apple are due almost entirely to Samsung’s massive advertising budget. While Apple failed to maintain its advertising spend as a percentage of revenue on its mobile devices—essentially coasting on existing brand recognition—Samsung ramped up its ad budget to more than 15% of sales.
Similarly, Google’s half-billion dollar advertising campaign could threaten Apple, but it’s more likely to threaten Samsung, which until now has been the market share leader in Android smartphones. Consumers will benefit as Google begins to compete directly with the companies that made Android so popular—so long as they can see through the massive fog of marketing that’s about to roll their way.
BoomBustBloggers knew this was coming as early as last year, reference Thoughts on Glass, Fashion, Fads, Moto X and Samsung's Phenomenal Yet Brief Trip To The Top
as well as:
- Google Has Officially Gone On Record To Confirm Reggie Middleton's "Negative Margin Business Model" Tactics
- Samsung Will Be Ready To Do That Fruit Thing, Just Like Blackberry & Apple - Courtesy Of Google, #MarginCompression!
- Samsung's Galaxy S4 Flagship Device Is Outed, What Does It Mean For The Industry? SoothSayer Speaks Truth To Tech!
- Deconstructing The Most Accurate Apple Analysis Ever Made - Share Price, Market Share, Strategy and All)!
Subscribers, click the following links for my updated price targets on Google (click here to subscribe) and read Google Q2 2013 Update: Valuing Possibly The Most Powerful Co. In The World?:
- Google Q1 2013 Valuation Note - Retail
- Google Q1 2013 Valuation Note - Professional & Institutional
The biggest risks to these price points are:
- A market that's being levitated by central bank magicians running short on magic spells...
- Regulatory pressure, which I feel is quite material and inevitable, but will not be a major factor in the near term.