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May 24, 2013

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For Android, Market share is money. Google business model is based on size of Truck! Bigger the truck (market share), more eyeballs and users for Google ADs and services. Google does not care what profit is being made on the sale of devices.

Prior to android, only a few people used smartphones because the one and only smartphone that was available was a high end one with a heavy price tag. What Android has done is that they have bridged the gap between low end (call only) phones and the high end multimedia iPhone. So now many people can afford a smartphone. But this does not change the audience for the high end iPhone. Although Android has introduced flagships to rival the iPhone, statistics say that still most high end users are sticking to their already familiar iDevice. Most of them are yet to take a leap of faith from iOS to Android. So even though the pie chart of market share has shrank to accommodate the new middle tier and lower tier smart devices, it does not affect the sales of the iPhone. Websites that display market share percentages as pie charts doesn't advertise the net amount, whose percentage they are calling as market shares.

Apple is making heaps of money in computers and their world marketshare is in the single digit.

Wall Street will sell their own mothers if they see a profit there.

Name those influential people you mentioned.

Thanks for your comment, Rottan.

Yes, Wall Street almost crashed America they're so bloody smart. How foolish it is to think that market share alone is worth anything. Wall Street's .com bubble killed the little investor because X.com company selling air bubbles had the most market share. How well did Wall Street's wisdom do then? How many investors lost their shirt to Wall Street Salesman who will switch sides in a heart beat if the wind blows just right. Give me a break about what Wall Street Prophets think.

Google may begin to introduce projects like Glass next year and they may out-innovate Apple one day or in the long run. That's the future. For now, in the real world, selling a gazillion cheap pieces of crap-phones pushing Android to third world countries does not make Android a winner in and of itself, whether Wall Street thinks so or not. Most of those countries sell pirated software so it doesn't help the Android developer.

Market share without profits proves little, unless you're Wall Street that is. Ha!

Great piece. It should also be pointed out that something like 95% of Android phones sold are made by Samsung, who are rapidly distancing themselves from Android, building a proprietary layer atop the free OS much as OS X does with FreeBSD. Eventually the other handset makers will be bought up, disappear, or operate at the extreme margins of the market. Their customers will go to either Apple or Samsung, so ultimately it will be iOS vs SamsungOS (whatever they call it), not iOS vs. Android. Microsoft is too late to the game, and I think Google blew it with Motorola (if they ever even planned to do anything with it other than use the patents). It's looking like iOS vs. Samsung is the new Mac vs. PC.

You people seem to be blindly ignoring the fact that Wall Street doesn't think Android's market share is a sham. Apple is seen as the big loser and investors are putting their money on Android.

There are an awful lot of influential people saying Google has a much brighter future than Apple due to the overwhelming numbers of Android device sales.

The whole point of winning in the smartphone industry is to sell lots of smartphones and that's the standard Wall Street uses to value companies. The less market share Apple has, the lower the share price will be.

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