Alphabet vs. APPLE for the back to school consumers

Alphabet vs. APPLE for the back to school consumers

Alphabet vs. APPLE for the back to school consumers

Alphabet( formerly Google) (NASDAQ: GOOGL) had great sales with the back-to-school consumers this fall, meanwhile APPLE(NASDAQ: AAPL) floundered. Chromebooks starting to hit it off with consumers.

Currently Apple(NASDAQ: AAPL) is at $117.67 after rising $1.37(1.18%). Alphabet formerly Google (NASDAQ: GOOGL) is at $811.50 after rising $1.93(0.24%)

Alphabet (NASDAQ: GOOGL) has been in the laptop market for quite some time now with their flagship product the Chromebook in June 15, 2011. They utilized the hardware of partners such as: Acer and Samsung, along with their own software. The result is an almost completely new take on the laptop. Alphabet touted it as being faster, able to store more and providing an easier user experience. On initial product launch a lot of problems were revealed with the new product. This along with public skepticism of the product was reflected in the low sales.

Finally Alphabet’s Chromebook now seems to be making its mark in the market for laptops. Since Alphabet has started production they have been plagued by low sales but now there sales have risen enough to allow them to become serious competitors with APPLE(NASDAQ: AAPL) for back to school consumers.

The Numbers

It was reported Tuesday by International Data Corp and Gartner Inc. that there were huge drops in APPLE’s sales for its notebooks. In fact it was a 13% decline in what is supposed to be the most important quarter of the year which does not spell good news for their notebook sales throughout the coming quarter.

On the other hand it was the opposite with Chromebooks. The two separate bodies the IDC and Gartner reported two separate figures for overall PC sales. The IDC which includes the Chromebook in its assessment recorded a 3.9% drop in PC sales for the previous quarter which was better than the predicted decline. However Gartner which did not include Chromebook in its PC sales recorded a larger 5.7% drop. It is clear that chromebooks fills the gaps between these two figures.

The principal analyst at Gartner, Mikako Kitagawa even said “ While our PC shipment report does not include Chromebooks, our early indicator showed that Chromebooks exceeded PC shipment growth”.

What are the factors behind this

The Chromebook’ stripped down laptop with lower specs and operating on Google’s OS is catching on with students who simply want typing functions as well as internet access. It is catching on with Tertiary students as well as students in K-12. Certainly it helps that the Chromebook is cheaper than regular laptops and this helps to draw the consumer’s eye.

Apple on the other hand has not refreshed its product line in a long while. The result is lower sales and lower interest in its product overall. However Apple intends to revamp its product line in late October therefore it shouldn’t be too surprising to expect that the stock price won’t change much as investors shouldn’t be too concerned.

Currently Chromebooks are manufactured by all major laptop manufacturing companies except for Apple. This means good things are in store as this may see an expansion in chromebook sales over time.