In a recent note to investors, renowned Piper Jaffray analyst Gene Munster contemplates the impact that Motorola’s Moto X device will have on the overall smartphone market. Although the analyst believes that the Moto X will be a “strong competitor to other Android phones,” he does not believe that it will significantly change the sales of Apple’s (NASDAQ:AAPL) iPhone.
Munster compares the Moto X to other “top Android phones,” such as the Samsung (SSNLF.PK) Galaxy S4 and the HTC One. Although these premium devices were ostensibly designed to compete with Apple’s iPhone, he notes that “iPhone sales have continued to exceed investor expectations over the past two quarters.” For this reason, Munster believes that the Motorola Moto X will have a similarly negligible effect on sales of the iPhone.
Although Munster does not expect the Moto X to entice Apple users away from their iPhones, he observes that the Google (NASDAQ:GOOG)-owned subsidiary appears to have taken on an “Apple-like” design approach to its latest device. He notes that the “focus on design as a feature” is similar to Apple’s design ethos. The Moto X still sports a plastic chassis, but Munster states that Motorola has plans to introduce custom back colors, including one made of wood.
The analyst also notes that many other Android devices have better hardware specifications than the Moto X does. However, Munster believes that by focusing on “delivering a great consumer experience rather than competing on specs,” Motorola may have created a strong competitor for the Android smartphone market.
Besides analyzing the impact of the new Moto X smartphone, Munster also briefly comments on Apple stock. “We continue to believe the key factor on the stock remains expected new products over the next six quarters, including a cheaper phone in the fall, the TV announcement late this year, and an iWatch in 2014,” writes Munster.
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