Market Overview

Why Is This Analyst More Worried About Android Than BlackBerry?

Share:
Why Is This Analyst More Worried About Android Than BlackBerry?

The future of Google Inc's (NASDAQ: GOOG) ubiquitous operating system may not be set in stone.

Between the rise of iOS devices, the decline of SAMSUNG ELECT LTD(F) (OTC: SSNLF) and the potential for Windows Phone to accelerate, Android is no longer the easy leader in mobile development.

"I am more worried about Android than BlackBerry," Global Equities Research analyst Trip Chowdhry told Benzinga. "Even though they have the market numbers, Android is in trouble right now."

Chowdhry's comments came after BlackBerry Ltd (NASDAQ: BBRY) announced Leap, its latest smartphone. The device is being targeted at a niche group of consumers: entrepreneurs.

"[Android] is just like a belly button -- everybody has one, whether you are rich, poor, whatever," Chowdhry joked. "A certain segment of society…has an aspiration to be differentiated. Android is not catering to that anymore."

Related Link: How Will Apple React To What This Analyst Says Friday?

Android's 'Consumer Fatigue'

Chowdhry believes that BlackBerry stands to benefit from the "consumer fatigue" that plagues Android.

"[President] Obama uses BlackBerry," said Chowdhry. "Why? When you think about that high level of security that a President needs…you can't just be an inch deep and a mile long. To get that kind of business you have to be [very secure]. It's a very high niche market, but it is the right strategy for BlackBerry to follow."

Chowdhry said that Android cannot "harden" its operating system to the level that BlackBerry has achieved -- that is, increase its security to become a dominant player within federal governments all over the world.

"To accomplish that level of security, who would you trust?" Chowdhry questioned. "BlackBerry or Google? Google has been blatantly using your information. The reason why Google is failing today is not because of technology, it's because of behavior."

Shares of Google are up more than 8 percent year-to-date, but Chowdhry said the fundamentals are weaker than they were 12 months ago. He said they don't support the stock and might show up in the company's results.

"When it comes to deep security, Android is a non-player," Chowdhry added. "They will not get a single customer because they do not have the credibility of securing privacy. The path at which BlackBerry is going is [the right] path because they are not becoming a belly button player. They have deep expertise in securing the wireless mobile services that nobody else can do."

Not even Apple Inc. (NASDAQ: AAPL) can compete in this regard.

"Apple iPhone cannot be secure to the level that federal agencies require, like the President," Chowdhry concluded.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Posted-In: Apple Blackberry BlackBerry LeapAnalyst Color Top Stories Exclusives Analyst Ratings Tech Best of Benzinga

 

Related Articles (GOOG + BB)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
POWLSidoti & Co.Maintains47.0
XDeutsche BankInitiates Coverage On121.0
WTEBMO CapitalMaintains18.0
DOLBMO CapitalMaintains50.0
NABMO CapitalMaintains69.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

ComEd Is the First Utility to Receive FAA Approval for Operational Use of UASs

Gene Munster: Apple Is Coming At The Market With A Design (Not Technology) Approach