Google Inc (GOOG) Could Further Dominate China: Here’s How

Can Google can maintain its Android market share with the Nexus 5?

According to comScore, Google Inc (NASDAQ:GOOG) is in a very dominant position in its respective marketplaces, both in terms of search and smartphone technology. In the search engine world, Google sites hold 66.7% of the overall market, while all iterations of the tech giant’s Android OS hold 52.4% of the U.S. market. Regarding the latter, the Android platform outpaces Apple Inc. (NASDAQ:AAPL)’s iOS (39.2%) and BlackBerry (4.8%) handily.

Assuming the Nexus 5 is released this fall, we’d expect it to compete with Apple’s next iPhone, as well as BlackBerry’s U10. We’d expect the rumored BlackBerry phablet to be a much closer competitor to the Nexus 5 compared to the iPhone, as Tim Cook has already stated his unwillingness to produce a larger-screen smartphone as long as quality “trade-offs” still existed.

While it’s tough to forecast margins of phablet devices—they vary depending on the producer, and don’t carry an overwhelming trend one way or the other—you can’t doubt the popularity of the device type. According to IDC (via the Fool), “handsets with screens that are 5 inches or larger have exploded from 1.2 million in 2011 to 29.7 million in 2012.”

In Asia, the research company also expects (via AppleInsider) the phablet market to come close to triple its size from the beginning of 2013, by the end this year. Kantar, meanwhile, has found that Google’s Android OS holds an absolutely dominant position in China’s OS marketplace, with 71.5% compared to Apple’s 23.6% share. BlackBerry holds just 0.2% of the market.

Final thoughts

So, for investors considering the possibility of Google as an investment, we’d have to call the possibility of a larger Nexus 5 device a net positive for the company’s stock price. Aside from the general allure that any new device has—in addition to Android 5.0 Key Lime Pie—we’re bullish on the fact that it may have a larger screen, which would appeal to a market that’s growing incredibly.

The fact that this phablet-type device is especially popular in China gives Google even more brownie points, particularly in comparison to Apple. We’ll also be watching BlackBerry’s speculated U10 very closely, but for now, that’s just a rumor. Continue reading about all things tech and finance here, on Insider Monkey.

Disclosure: none