The Winners and Losers of Facebook Inc (FB) Home

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Of course, greater Android variety means the possibility of having a larger audience. Facebook Home could prove so attractive that a consumer using a non-Android phone runs to the platform just for the Facebook integration. In time, this could make Android the favored platform for mobile developers — a key weakness of Google’s operating system.

So, it’s possible that Google will take Facebook Home in stride, continuing its policy of openness for the sake of adding new users. It’s also possible Google changes its policy, clamps down on Android and forces handset makers to conform to particular standards. At this point, the ball is in Google’s court.

Facebook Home was slightly negative for Apple

If Facebook Home fails to attract many users, it will have little effect on Apple Inc. (NASDAQ:AAPL). But it’s possible that it could sway users from Apple Inc. (NASDAQ:AAPL)’s iPhone to an Android-powered device.

Many people believe in the notion of an Apple ecosystem, (I’m a bit more skeptical) and if that’s the case, someone who doesn’t buy an iPhone may be less inclined to buy an iPad or purchase media through iTunes.

The worst-case scenario is that developers would begin to embrace Android over iOS. It’s debatable as to whether or not Apple offers the best handsets, but what isn’t debatable is that developers continue to favor iOS over Android. The most popular apps, such as Instagram, were developed for iOS before being ported to Android later.

Right now, it’s too early to say if Facebook Home (or similar Android skins) could draw people away from iOS. But the possibility, however remote, is there. Facebook Home certainly wasn’t a positive development for Apple.

Breaking down Facebook Home

In the end, Facebook Home might turn out to be nothing. Many people might simply prefer a more stock version of Android.  Nevertheless, the mobile operating space changed Thursday.

Facebook scored a victory, although to what extent remains to be seen. Apple was slighted somewhat, though it’s still too early to say whether not Facebook Home could dissuade people from buying an iPhone.

Most interesting is Google and the decisions the company has to make in regard to Android. Google could respond by clamping down on its operating system, or embrace the change. In the end, consumers reaction to Facebook Home, and Google’s response, will be the key events to watch for.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Apple, Facebook, and Google. The Motley Fool owns shares of Apple, Facebook, and Google.

© 2013 The Motley Fool. All rights reserved.

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