Google Inc (GOOGL) Faces Potential Challenges in Mobile Operating System Industry, Android Open Source Project Gaining Popularity

Google (GOOG)

Google Inc (NASDAQ:GOOGL) is dominating the mobile industry with Android, which comes bundled with several Google services. However, the increasing dominance of secondary operating systems and more companies looking into the Android Open Source Project is a matter of concern for the Internet giant.

As of now, Google is the primary player in the Smartphone operating systems with as many as 84.7% Smartphone devices out of 301.3 million shipped during the second quarter 2014 powered by Android. Its share has improved from 79.6% in 2013, as per IDC. Apple Inc. (NASDAQ:AAPL) is the secondary operating system company with 11.7% Smartphone devices powered by its iOS. However, with the introduction of Apple Watch and Apple Pay system, it is likely to pose some potential challenges in front of Google Inc (NASDAQ:AAPL) in near future.

The main concern arises from companies like Amazon.com, Inc. (NASDAQ:AMZN) and Nokia creating their unique versions of Android with the Android Open Source Project. Amazon is using the same to power its Kindle Fire series whereas Nokia used it for its first Android device, Nokia X.

In addition to it, Samsung Electronics Co Ltd (KRX:005930) is trying alternative operating systems, such as Tizen, and the company already offers mail and associated services in addition to those available in the Google ecosystem. The Korean company earlier warned the Android owner, Google Inc (NASDAQ:GOOGL), about its relatively lesser dependence over the platform.

Google (GOOG)

Things are not looking good for Google in the biggest Smartphone market of the world i.e. China. As mentioned by Gartner last year,

“Chinese-based internet providers, such as Baidu, Alibaba Group and Tencent, [are] providing local featured apps, services and content through app stores that they themselves operate. This participation is preventing Google from being a major beneficiary of smartphone user growth in the China market.”

The Chinese Smartphone market includes several providers with custom versions of Android and it could certainly help Amazon.com, Inc. (NASDAQ:AMZN) and Nokia to work with these providers. With Microsoft Corporation (NASDAQ:MSFT) looking to increase its user base, Satya Nadella, CEO of MSFT, was earlier in talks with Cyanogen, ASOP fork owner, and it might even lead to a potential partnership between the two.

With more companies looking for alternate ecosystems and increasing ASOP versions available in the market, things might get a bit tricky for Google Inc (NASDAQ:GOOGL) in near future.

This article has been written by Prakash Pandey.

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