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Apple, Google Will Win The Smartphone Wars, Says Altucher -- BlackBerry Is Toast

Posted Dec 13, 2010 11:00am EST by Henry Blodget in Media, Telecom, Mobile
Related: aapl, goog, rimm, nok, rvbd, ffiv, msft

The biggest new computing trend since the Internet boom of the 1990s is the rise of smartphones, the mobile mini-computers that are taking over the old "cellphone" market.

On these phones, the "phone" is an after-thought: What matters is the functionality of the handset itself. Specifically, the quality of the screen and Internet connection, and the number of "apps" that run on the phone.

[Video: Smartphone Wars Heat Up]

Smartphones will be a much bigger and more profitable trend than most people think, says James Altucher of Formula Capital.

Apple and Google will win the smartphone war, as the iPhone and Android continue to gain market share. Why? Because the iPhone and Android phones provide the best multi-media experience thanks to a wide variety of apps. "Realistically Google will keep moving ahead in market share because 100 different handset manufacturers make the Android," Altucher forecasts.

And, as Cisco won in the 90's for powering the internet, the companies that make the nuts and bolts for the phones will also be the big winners in the smartphone wars, says Altucher.  He predicts bright futures for F5 Networks and Riverbed Technology.

Research in Motion and Nokia, meanwhile, will be the biggest losers, having missed the transition to smartphones-as-app-platform.

"I don't know anybody with a Nokia," he notes.  Nokia still has a massive presence in the global market but its dominance is fading. In North America, sales declined, 21% in the first quarter of 2010, alone.

[Related: 10 Businesses the Smartphone Has Destroyed]

Research in Motion stock won't go to zero, Altucher says, but its best days are behind it because they lack the app offerings consumers want.  For developers, Blackberry is a distant third on their priority list.  "Eventually they'll be nothing," Altucher says. "They just don't offer the functionality. You want applications, you want Angry Birds" and RIMM simply doesn't compare with Apple and Google. 

Apple and Google, meanwhile, will keep going up.

See Also: James Altucher Demands Apology From Nouriel Roubini For Ridiculing His Bullishness

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1,118 comments

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  • Gideon
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    Gideon Tue Jan 04, 2011 01:18 pm EST Report Abuse
    what u are too close to and famalia with u eventualy fall in love with
  • Just Me
    2 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 3 users disliked this comment
    Just Me Thu Dec 16, 2010 05:05 pm EST Report Abuse
    This guy has no clue, Apple will fail again not because only they make Iphones, not because android has multiple manufacturers and not because of the lack of innovation. They will fail because of the Steve Jobs business philosophy of, if I don't get a piece of the pie noone gets anything and you can only do as I say with my(oops) your device. This is why they lost the PC wars and it will be why they will loose the SP wars. This is exactly how things were in the '80 when the PC was evolving into what it is today. Jobs greed sacked the Mac and it will sack the Iphone. Apple was the first to have a GUI PC not Windows, but the business philosphy of Apple caused them to fail and they haven't learned from their mistakes. Jobs is going down the exact same road to ruin eyes wide open this time and he still does not get it. He's the perfect example of if you don't learn from your mistakes you are bound to repeat them. Way to go Jobs. Unless Jobs can learn to make a left or a right down the road to success the Iphone will be Apples second footnote of technological history. Hey but who knows maybe he has a plan to change once he see the Iphones market share fall to point where he will say its time for plan B. I hope not because I hate apple, but its possible. But all you Iphone lovers if Apple wins just get used to paying twice what you should for your little gadgets, because that's how apple operates. PC's would cost twice as much as they do today if Apple had won the PC wars. Thank God they did not.
  • union131
    1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 2 users disliked this comment
    union131 Thu Dec 16, 2010 03:57 pm EST Report Abuse
    Y are we still arguing about this, everyone knows that droid is better. i need to get the droid incredible cuz it is better
  • Bobby Lee Swagger
    0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 2 users disliked this comment
    Bobby Lee Swagger Thu Dec 16, 2010 03:46 pm EST Report Abuse
    Blackberry 3rd? they should be dead last... Morris code is better than Blackberry!
  • HERE KITTY KITTY
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    HERE KITTY KITTY Thu Dec 16, 2010 03:39 pm EST Report Abuse
    One major negative for Iphone is it isn't OPEN SOURCE. With many of the android phones you can flash them on different service providers. With the iphone you're stuck with AT&T's service which is at the top of the list as far as bad service.
  • HERE KITTY KITTY
    2 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    HERE KITTY KITTY Thu Dec 16, 2010 03:26 pm EST Report Abuse
    I totally agree RIM better start innovating themselves or people better start selling their stock.

    Who buys blackberries anymore with all the better operating systems available. Android is so much better but then again this is just my opinion.
  • dagleee
    1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 8 users disliked this comment
    dagleee Thu Dec 16, 2010 03:25 pm EST Report Abuse
    I PHONE RULE !!!!!! Android SUCKS!!!!!!!
  • HERE KITTY KITTY
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    HERE KITTY KITTY Thu Dec 16, 2010 03:17 pm EST Report Abuse
    I like the Iphone but I will never have AT&T service again. I now have Cricket and have an android. Even though my android has the older version 2.1 I love it. With my military discount my service for unlimited everything comes to $38 month.

    I was paying over twice as much for AT&T.

    Yeah, but as we all know people feel they have to have the Iphone. It's what's keeping AT&T a viable company
  • HERE KITTY KITTY
    2 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 1 users disliked this comment
    HERE KITTY KITTY Thu Dec 16, 2010 03:16 pm EST Report Abuse
    I like the Iphone but I will never have AT&T service again. I now have Cricket and have an android. Even though my android has the older version 2.1 I love it. With my military discount my service for unlimited everything comes to $38 month.

    I was paying over twice as much for AT&T.

    Yeah, but as we all know people feel they have to have the Iphone. It's what's keeping AT&T a viable company.
  • Cherie
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    Cherie Thu Dec 16, 2010 03:08 pm EST Report Abuse
    Ya know it is hard to even find just a regular cell phone anymore these days. Some people don't want nor need all the apps and expense that comes with todays smartphones. Since switching 3 lines to smartphones, basically because there are not other decent choices, my cell phone bill has gone up by about $65 per month.

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