Are Apple’s priorities in order?

Having a niche product won’t let you stand the test of time, and that’s what Apple needs to realise

It’s shaping up to be the mother of all battles in the fiercely competitive world of smartphones and tablets: the never-ending patent wars between Apple (Nasdaq: AAPL) and Samsung that includes more than 30 cases spanning four continents.

While both are already champions in their own right — with Apple being the world’s most highly valued company and Samsung being the planet’s biggest technology company in terms of revenue — these patent-related cases are the culmination of a fierce tendency on Apple’s part to protect its intellectual rights. The most recent development involves Apple’s efforts to stop the sale of Samsung’s Galaxy S III in the U.S., claiming that it infringes on two Apple patents.

When you’re dealing with a worldwide smartphone market that’s worth a cool US$219 billion, any handset maker would go to great lengths to retain its dominance. Apple has been fighting patent battles related to the iPhone against Motorola Mobility, and it consistently blames Samsung for violating of its technology and handset designs, notably as the newest unit in the Galaxy line of phones seems to be rivaling Apple’s iconic iPhone in worldwide sales. The biggest irony is that Apple still remains Samsung’s biggest customer for its chips and display screens.

Tapping China
While it’s true that Samsung’s phones do look a lot like Apple’s products, from the technology and user interface right down to the packaging, Apple has a host of other concerns to contend with, with China being at the forefront. Apple holds a disappointing fifth position behind Samsung in terms of smartphone sales in China, managing only 7.5% market share against Samsung’s 24.3%.

And this is one country Apple would like to dominate. Its prospects there should brighten in the near term with the introduction of the iPhone 5, which is rumoured to be compatible with the proprietary TD-SCDMA network that powers China Mobile, the nation’s largest wireless company. Yet there’s every chance that Samsung will increase the gap between the two.

Apple knows it needs to one-up its rival in this battle, and within the shortest possible time. The wide range of prices and the variety of screen sizes that Samsung phones boast — along with other factors such as the wide acceptability of Google‘s Android operating system, which powers most of Samsung’s latest product lines — don’t leave a lot of options open, even for a technological behemoth like Apple. Having a niche product won’t let you stand the test of time, and in my opinion that’s what Apple needs to realise.

No matter which way this one goes, more excitement in the smartphone and tablet market is undoubtedly good news for telecoms businesses like Telstra (ASX: TLS) and consumer electronics companies like Harvey Norman (ASX: HVN) and JB Hi-Fi (ASX: JBH)

If you’re in the market for some high yielding ASX shares, look no further than our “Secure Your Future with 3 Rock-Solid Dividend Stocks” report. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

 More reading

The Motley Fools purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

A version of this article, written by Subhadeep Ghose, originally appeared on fool.com.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

The share price of ASX infant products retailer Baby Bunting Group Ltd (ASX:BBN) has been a solid performer so far …

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

A new landmark report by the Intergovernmental Panel on Climate Change (IPCC) was released earlier this week. It provided a …

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest …

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos Limited (ASX: AMS) share price has been on a tear this past week, rising 15% on the back …

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

Online furniture retailer Temple & Webster Group Ltd (ASX: TPW) had a breakout year in 2020, moving from relative obscurity …

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

Shares in ASX healthcare company Polynovo Limited (ASX: PNV) almost doubled in price last year. And, despite a shaky start …

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

Investing in other geographic markets has become a popular way to diversify a portfolio. The risks associated with being exposed …

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

Despite the News Corporation (ASX: NWS) share price getting a 31% bump between November last year and today, News Corp …

Read more »