The fact that Google Inc (NASDAQ:GOOG) and its Android operating system are performing at a high level is no surprise to anybody. While it is facing a lot of competition, particularly from iOS, the search engine giant continues forward with hopes of grabbing more market share in the future.
That being said, there are reasons to believe that Google may be shifting its focus just a bit. For example, a recent piece by Digitimes suggests that the company is adjusting its “hardware strategy to expand platform market share.”
Here is more from the piece:
“According to recent strategy adjustments made by Google, the firm has been shifting focus back to its core business, advertising, and any from developing hardware. After all, Google started out with advertising as its core business, and developing hardware was a method to strengthen the coverage of its advertisement distribution channels. With that objective fulfilled, the firm has been modifying its business strategies.”
Although Google Inc (NASDAQ:GOOG) has had great success in the smartphone space, it is hard to imagine a scenario in which the company forgets where it came from. Everybody knows that Google is the number one search engine in the world. They also know that the company dominates when it comes to online advertising.
Should we expect more from Google Inc (NASDAQ:GOOG) in the near future as far as handsets are concerned? Right now, the company pushes its Android operating system primarily through its partners, such as Samsung.
Here is more from the article in terms of the changes we may begin to see:
“This strategy shift indicates that Google will not continue to invest large amounts of resources into the development of handset hardware. Instead, Google’s strategy is to improve its software and cooperate with handset makers with existing hardware serving as reference models for the Android platform.”
While there are many opinions on whether or not this is the right move for Google Inc (NASDAQ:GOOG), it appears to make good sense at the present time. The company has had great success with its Android operating system, and getting away from this in the future, just to dabble with hardware, may lead to a loss of focus.
Android is performing well in the smartphone market and picking up steam on the tablet side of things.