Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Google Inc. (GOOG), Apple Inc. (AAPL), Intel Corporation (INTC),, Inc. (ADR) (BIDU): An Android Killer?

Since its introduction four years ago, Google Inc. (NASDAQ:GOOG)‘s Android has taken the world by storm, rising to a global market share of 68.3% according to research firm IDC. In the developed world, Apple Inc. (NASDAQ:AAPL)‘s iOS has been the benchmark Google is chasing, but in emerging markets, Android is almost unchallenged. The platform is free to developers and comes with a wide breadth of applications that have allowed the OS to spread. Apple has essentially stayed out of the emerging markets, and other competitors are just beginning to wake up to the importance of these markets.

Apple Inc. (AAPL)

Despite this global dominance, Android is not without some severe shortcomings that have left a real opening for competition. Spearheading one such effort is a partnership involving Samsung, Intel Corporation (NASDAQ:INTC), Huawei, and a slew of other Asian players. You must love the irony that Tizen, the new OS, is largely the product of Samsung, one of the biggest drivers of Google Inc. (NASDAQ:GOOG)’s success and the largest Android provider by market share by a huge margin.

Samsung is set to release the first Tizen device near the end of the summer. The company has promised a premium smartphone that will be at least on par with the recently released Galaxy S4. If the new OS is well received, it has the potential to completely disrupt Android’s emerging-market business, particularly in Asia, and potentially in Africa. Given the growth rates in these regions, the release of Tizen has to be the most important development in the smartphone arena since Android itself.

The political side of the smartphone wars
In January 2010, Google Inc. (NASDAQ:GOOG) found itself in the midst of a philosophical battle with none other than the Chinese government. Google was forced to censor certain search results at that the Chinese government deemed unacceptable. In response to the impasse, Google began rerouting Chinese users to its Hong Kong site, thereby circumventing the need to obey Chinese laws. Also deeply tied to the situation was the government’s desire to have “monitoring” access to Chinese users. This move was not well received, and the company was quickly forced to leave the country entirely.

While the connection between a political dispute on censorship and smartphone dominance may not be immediately apparent, remember that everything Google Inc. (NASDAQ:GOOG) does is tied to search. Everything. What this means is that Android, and the Google apps that are native to it, are tied to a search engine that isn’t welcome in China. Since Google’s historic departure, the company’s market share has been gobbled up by various players native to the region., Inc. (ADR) (NASDAQ:BIDU) , for example, which is known as the Google of China, has become the preferred browser of many users.

How this translates into smartphones is that in many cases, manufacturers selling devices in this part of the world must include user interfaces which that a primary purpose of working around much of Android’s native functionality. If you’re wondering why Samsung, Huawei, or others would still choose Android, keep in mind that it’s an essentially open-source, free software supported by 700,000 apps and enjoying almost global acceptance. In simpler terms, Android represented the path of least resistance for companies that were eager to get to market and didn’t necessarily possess the resources — at least at the time — to develop their own OS.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.