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Apple, Google Lay Waste to Their Enemies

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Last week, we looked at Apple’s (AAPL) ever expanding list of enemies following the iOS 6 release. New improvements and additions to the iPhone threaten to put a cramp on many third party developers.

Well, it looks Cupertino wasn’t done making people mad.

Along with Google (GOOG), Apple has now captured 80% of the global smart phone market. According to the Wall Street Journal, between the first quarters of 2011 and 2012, Cupertino’s share of the smartphone market jumped from 18.3% to 23%. Google’s shot up even higher, from 36.1% to 59%.

And where did all this market share come from? Why, Nokia (NOK) and RIM (RIMM), of course. Market share for Nokia’s Symbian OS -- soon to be replaced with software from Microsoft (MSFT) -- fell from 26% to 6.8%. BlackBerry fell from 13.6% to 6.4%.

In the next five years, smartphones are expected to grow from 35% to 75% of the overall market. This huge growth potential has led to increasingly intense efforts by Apple and Google to seize market share.

Recently, Apple has moved into the prepaid cell phone market in hopes of making the iPhone more affordable (more on how to save money on your iPhone here). While contract-free iPhones cost more upfront, they are ultimately more affordable than buying a plan for some users. Of course, prepaid phone companies might not be too happy with the move.

Even as they eat up other companies’ market share, Apple and Google haven’t forgotten their distaste for one another. In the next few weeks, Google plans to release a new tablet intended to compete with the iPad. They are also working on a Siri competitor.

Apple, meanwhile, outfitted its new operating system with features intended to replace some of Google’s traditional functions. Both search and maps can now be carried out through proprietary Apple software.

I guess no one ever took over the world without making a few enemies.

(See also: Save $1,000 on iPhone Charges by Thinking Like ‘The Wire’ and Apple Co-Founder Hates Siri, Too)
POSITION:  No positions in stocks mentioned.