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Microsoft & Google to Battle Apple and Dominate Smartphones?

Monday, 14 Feb 2011 | 6:17 PM ET

With the Mobile World Congress underway in Barcelona, investors are sifting through a sea of information, trying to determine who wins and who loses from the latest smartphone trends.

Of course, it's best to digest every detail, but that could take weeks. So if you're strapped for time BGC analyst Colin Gillis says put these 3 tech titans on the radar.

Microsoft

Although the Street is not too excited about it right now, Gillis thinks the deal Microsoft inked with Nokia is “a major positive” for Mr. Sotfy.

Top Three Mobile Congress Trends
A look at the trades to watch out of the Mobile World Congress, with Colin Gillis, BGC Capital Partners.

Under the agreement Nokia, the world's largest cellphone maker, will adopt Windows Phone software across its devices, replacing its home-grown Symbian platform.

”Essentially Microsoft is getting a third of the smart phone market with this deal,” says Gillis. And he tells the desk he’s a buyer of Microsoft on the promise.

Google

The potential of the mobile internet has excited many investors, but Colin Gillis thinks there are landmines in this area.

"Mobile searches on Google make up 10% of total searches but mobile revenue is less than 4%," Gillis says.

That could be a problem for Google whose business model is very dependent on ads.

”There is a big gap between the monetization of mobile and it’s usage. That gap probably closes over time but it’s a trend worth watching,” says Gillis.

Apple

Although Apple didn't attend the event in Barcelona, Gillis says the company can't be forgotten because of all the smartphone makers Apple’s ecosystem is most sticky. People don’t want to leave the iPhone because they like having all the developer apps and iTunes.

According to Gillis, "I think Apple will be the frontrunner for some time to come."

What’s the bottom line?

"To sum it up, Microsoft probably has quite a bit of value in it. Google is probably fully priced and Apple is still a great name," Gillis says.



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