Google announced that it will be selling its new smartphone, Nexus, directly to consumers without a wireless partner. How much of a threat is Google’s new gadget to Apple’s iPhone—and which company is a better buy for investors?
Gene Munster, senior research analyst at Piper Jaffray, and Brian Marshall, senior analyst at Broadpoint Am Tech, discussed their views.
“This is a paradigm shift, from a cell phone to a computer in your pocket, and this Ferrari that Google has built with this Nexus is going to showcase that this is where consumers want to be,” Munster told CNBC.
“So this is a 17 to 20 percent of the global market—there is a huge opportunity.”
However, Munster said that, while he expects both companies to perform well, Apple is a better buy.
Marshall also recommended that investors buy Apple over Google .
“We think that the ecosystem that [Apple has] been able to build has grown in power so much that even with the new Google phone, it will be very hard to disrupt that Apple carte,” he said.
Marshall said he has a $235 price target on Apple, which will be achievable this quarter.
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Munster’s firm Piper Jaffray makes a market in the securities of the following companies, and will buy and sell the securities of these companies on a principal basis.
Marshall does not own shares of APPL or GOOG.