Google's Android Seems Unstoppable - What Could Derail It?
by Sneha Shah
Introduction
Google (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 smart phone 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, HTC etc. have become Google evangelists without gaining much from the exchange. read more »
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