There are suggestions that the stock, if not overvalued, is at least fair value. Other firms in the same sector may not necessarily be looking to challenge Apple for the top spot, but they might offer better growth prospects and relatively better returns.
The AskTraders team has studied the technical and fundamental factors that need to be incorporated into any Apple competitors’ analysis. That research can help identify not only which stock to buy, but when to do so. The below list of Apple’s major competitors is ideal for those investors looking to gain exposure to the ever-popular tech sector but willing to look past the obvious target.
Best Apple competitor stocks
- Samsung Electronics Co Ltd (SMSN)
- Microsoft Corporation (MSFT)
- Alphabet Inc / Google (GOOG)
- Amazon.com Inc (AMZN)
- Lenovo Group Ltd (LNVGY)
1. Samsung Electronics Co Ltd (005930.KS)
Samsung competes head-to-head with Apple in almost all of its divisions and is Apple’s main rival in the crucial mobile handset market. Since 2012, Samsung has maintained control of 20-30% of the handset market while Apple’s share is closer to 13%. As of 2019, Samsung had approximately twice the number of employees as its US rival, 320,000 compared to 137,000, which means it has the capacity to cope with a shift in consumer appetite away from iOS and towards Android operating systems.
Stocks in the Korea-based tech giant can be traded in GDR form, or tracked using the ticker 005930.KS. Given the recent share price movement back towards the 2021 highs, the opportunity to buy the dip may be gone, but upside remains in the eyes of many analysts.
2. Microsoft Corp (NASDAQ: MSFT)
Microsoft is another tech giant and Apple competitor, having recently taken the position of number 1 on the largest companies by market cap. The crossover in markets is not as intense as with Samsung, but the non-competing business lines Microsoft boasts are in potentially rewarding growth sectors such as web hosting services.
In the areas where it does compete directly with Apple, the devices segment, software and application development and gaming platforms, Microsoft is large enough to be able to go toe-to-toe with Apple. the recent addition of Activision to the MSFT stable goes to show the desire the firm has to be a major player in the gaming space.
Microsoft’s share price chart can only be described as bullish. The stock price has consistently bounced off the Weekly 20 SMA, making moments when the stock price does clip that metric a time for long-term investors to step in and buy.
3. Google – Alphabet Inc (GOOG/ GOOGL)
Google has the critical mass and market position to pose a serious threat to Apple. The Android operating system, which Google owns and licenses to firms such as Samsung, is a direct challenger to Apple’s iOS system; Google Play is a like-for-like competitor to iTunes.
The online payment services market looks to be a particularly important battle ground. Both firms are trying to establish ‘first mover’ advantage in India and China. With both countries having populations in excess of 1bn people, the outcome from that situation will have long-lasting implications for the share prices of both firms.
Alphabet stock continues to rise in almost all weather, and as another of the Magnificent 7, has been playing it’s role in propping up markets in recent times.
4. Amazon.com Inc (AMZN)
Amazon’s share price has shown greater resilience than Apple’s to the risks posed by inflation cutting into future corporate earnings. The diversity of income streams at Amazon is greater, with web-hosting services (AWS) and the core online sales platform offering a greater degree of future-proofing than Apple’s suite of consumer-facing products.
The ability of AMZN stock to hold its value over the turn of the year suggests investors are taking the view that Jeff Bezos’ firm will be better positioned to face the challenges of the next few years. Amazon is also willing to go head-on with Apple as exemplified by the Kindle Fire and Amazon smartphone handsets reported to be in the pipeline. Amazon’s video streaming services encroaches onto Apple territory to the extent that Apple has stopped enabling the streaming service, and in return, Amazon has stopped selling Apple TV.
5. Lenovo Group Ltd (LNVGY)
China-based Lenovo Group is a PC and mobile handset manufacturer, which offers consumers high-quality, competitively-priced devices. Their product range is a direct threat to Apple, which has sales based to a large extent on brand loyalty. Consumer preference can quickly change, and the longer Lenovo stays in the game and builds its own brand recognition the greater the chance it can start taking market share from its larger rival.
Hong Kong listed Lenovo share price (0992.HK) is now back in the range of highs not seen since 2021 and finding support from moving averages. A move above the 50 Weekly SMA will be seen as a bullish sign for those trading momentum and breakout strategies.
Apple Main Competitors – Key Business Categories
Apple’s goal is to be the product of choice in each of the areas and business units that it enters on the market. Being one of the world’s most valuable and influential technology companies, there is competition flowing various segments of its business, and from all corners of the globe. Apple’s main competitors vary depending on the product category, such as smartphones, personal computers, wearable technology, and digital services.
Smartphones
iPhone is a flagship product, and one that dominates the premium smartphone market. You will likely have seen a shift in competitors over time, with a couple of familiar names popping up more often.
- Samsung Electronics: Samsung is Apple’s most formidable competitor in the global smartphone market. Samsung’s Galaxy series, particularly the Galaxy S and Galaxy Note lines, competes directly with the iPhone. The company offers a wide range of smartphones at various price points, giving it a broad appeal in different markets.
- Google: The Pixel smartphones are known for their pure Android experience and advanced camera technology. While not as dominant as Samsung or Apple, Google’s integration of hardware, software, and services positions it as a significant competitor, particularly among tech enthusiasts.
- Huawei: As a Chinese company, before facing significant challenges due to geopolitical tensions and trade restrictions, Huawei was a major competitor. The company’s flagship devices, such as the Mate and P series, offered high-end features that rivalled the iPhone. Remains a big competitor in Asian markets.
Wearables
Apple leads the wearable technology market with its Apple Watch and AirPods, but several competitors are challenging its dominance:
- Fitbit (acquired by Google): Fitbit is a major player in the fitness wearable market, with a range of products that focus on health tracking and fitness. While Fitbit’s products are generally priced lower than the Apple Watch, they are popular among health-conscious consumers.
- Samsung: Samsung’s Galaxy Watch series is a direct competitor to the Apple Watch, offering similar features such as fitness tracking, notifications, and integration with Android smartphones.
- Garmin: Garmin specializes in high-end fitness and outdoor wearables, with a focus on athletes and outdoor enthusiasts. Garmin devices are known for their robust build and advanced tracking features, particularly in GPS accuracy and health metrics.
- Sony: Sony competes in the wireless earbuds market with its WF-1000XM series, which rivals Apple’s AirPods Pro in terms of sound quality, noise cancellation, and battery life.
Services
The digital services business, including the App Store, Apple Music, Apple TV+, iCloud, and Apple Arcade, are a growing part of its business. The company faces huge competition in this space.
- Google: Google’s Play Store competes directly with Apple’s App Store for app distribution on Android devices. Google also competes with Apple Music through YouTube Music and with Apple TV+ through YouTube and Google TV.
- Spotify: Spotify is the leading competitor to Apple Music, offering a vast library of music and podcasts. It has a larger user base globally, thanks to its freemium model and solid playlist curation.
- Netflix: Netflix remains pretty dominant in the streaming video market, competing with Apple TV+ for original content and streaming subscribers.
- Amazon: Amazon competes with Apple on multiple fronts: Amazon Music against Apple Music, Amazon Prime Video against Apple TV+, and Amazon Web Services (AWS) against Apple’s iCloud for cloud storage solutions. Additionally, Amazon’s vast ecosystem of services and devices, like the Echo smart speakers, compete with Apple’s HomePod and Siri.
- Microsoft: Microsoft’s Xbox Game Pass competes with Apple Arcade in the gaming subscription service space. Additionally, Microsoft’s Azure cloud services are a competitor to Apple’s iCloud for enterprise-level cloud computing and storage.
Laptops/ PCs
Apple’s Mac line, including the MacBook, iMac, and Mac Pro face a stiff line of competitors from global names, through to those who custom build their own devices using components from a much broader list of companies than we can put on this shortlist.
- Microsoft: Microsoft competes with Apple through its Surface line of laptops, tablets, and desktops, which emphasize versatility and integration with Windows 10 and Windows 11. The Surface Pro and Surface Laptop, in particular, are positioned against Apple’s MacBook and iPad Pro.
- Dell: Dell’s XPS series is a direct competitor to Apple’s MacBook Pro, offering premium laptops with cutting-edge technology, design, and performance. Dell’s focus on both consumer and professional markets makes it a key competitor.
- HP: HP’s Spectre and Envy series laptops are high-end alternatives to Apple’s MacBook range, offering similar features such as high-resolution displays, premium materials, and powerful performance.
- Lenovo: Lenovo, especially through its ThinkPad and Yoga series, competes with Apple in both business and consumer markets. The ThinkPad series is particularly popular in the corporate world for its reliability and performance.
