Google's Android Seems Unstoppable - What Could Derail It?

Mar. 20, 2013 3:11 AM ETAlphabet Inc. (GOOG)AAPL, BB, MSFT47 Comments
Sneha Shah profile picture
Sneha Shah
1.96K Followers

Introduction

Google (NASDAQ:GOOG) is winning big with its strategy of giving its Android operating system for smartphones and tablets for free. This strategy allowed Google to comprehensively beat other smartphone operating systems and become the dominant smartphone operating system company in a very short period of time. Android now commands ~70% of the smartphone O/S market and over 40% of the tablet O/S market. The company used its marketing and technological strengths to make this Linux derivative the default operating system for almost all lower end smartphones. Its free strategy has enabled hundreds of hardware vendors to compete with the leading players such as Apple (AAPL), BlackBerry (BBRY) and Nokia (NOK) on almost equal terms. While Google is currently not making a lot of money through Android, it is depriving its major competitors (Apple and Microsoft (MSFT)) of billions of dollars in potential profits. Android has been Google's biggest success in my view after its internet search product. Android is allowing Google to reach hundreds of millions of users which it could never hope to do on its own. Android vendors such as Sony (SNE), HTC etc. have become Google evangelists without gaining much from the exchange.

Android is winning Big

  1. Unassailable Lead in Smartphones O/S - Google's Android operating system is the undisputed leader in the smartphone operating space with almost 70% of global market share. Google managed to catch the growth wave in smartphones just in time. The company by freely giving away the O/S co-opted hundreds of hardware vendors into its ecosystem. Google has managed to gain hundreds of millions of customers for its services (Google Play, Google search, Gmail etc.) by spending very little money (development of Android O/S). Android is used by the world's biggest smartphone vendors such as Samsung, LG, Sony, HTC etc. It is also

This article was written by

Sneha Shah profile picture
1.96K Followers
I am Sneha Shah, the Editor-in-chief of Greenworldinvestor. A Chartered Accountant by profession, with interest in Finance,Green Industry, Economics and the Indian Market.

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