Google’s (GOOGL) Android is currently the world's most popular mobile operating system (OS). It is the largest installed mobile platform and has witnessed great success over the last few years. However, whether it has any more growth left in it, remains to be seen.
According to recent data from Strategy Analytics, Android grabbed 84% of the smartphone market share in the third quarter of 2014, down 1% from the previous quarter. However, despite 27% annual growth in global smartphone shipment, Android was not the only mobile OS to witness a downfall. Apple (AAPL) also declined 1% sequentially to 12% in the third quarter, while Microsoft’s (MSFT) Windows Phone and BlackBerry (BBRY) stood at 3% and 1%, respectively.
The executive director of Strategy Analytics, Neil Mawston, believes that Android will continue to be the leader in the global smartphone market due to its low-cost services and user-friendly software. Recently, Google launched its Android One initiative targeting India to deliver the high-end smartphone experience on low-cost devices. The launch is expected to be vital for the search giant as it is likely to launch similar handsets in other emerging markets on the basis of consumer response in India.
However, according to Mawston, Android has reached its peak and is unlikely to cross 85% global smartphone market share. Additionally, he believes that the launch of iPhone 6 and iPhone 6 Plus has put Apple back on its feet strengthening its competitive position against the technology giant.
While Android dominates the global OS market, others like Windows and iOS are also popular and continue to gain momentum. Additionally, new operating platforms like Firefox and Tizen are emerging as strong competitors to Google's Android. Firefox, in partnership with Spice and Intex, recently launched two new smartphones, priced below INR 2,300, targeting those who want to upgrade from feature phones to smartphones.
To add to the woes, the European Commission continues to investigate claims that Google deliberately blocks rivals from promoting their services in Google-branded apps via its operating system.
To Conclude
As per IDC, Android held 36.1% market share in the second quarter of 2011, which increased to 84% in the third quarter of 2014. It has been an absolutely amazing run for Google over these three years and even if Android is unable to gain any more share, it would still be a stellar achievement on its part.
Google currently carries a Zacks Rank #4 (Sell). Baidu, Inc. (BIDU) sporting a Zacks Rank #2 (Buy) is a better-performing stock in the technology space that is worth considering.
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