Source: IDC
As shown in the chart, Android has gained notably over the past year relative to its competitors, particularly Apple’s iOS.
According to recently released statistics from Kantar Research, Apple Inc. (NASDAQ:AAPL)’s market share in the U.S has also been swayed Android’s way. The report says that Android went ahead to seal the gap and go ahead of iOS during the three month period between November and January.
Android constituted 49.9 percent of aggregate U.S smartphone sales, compared with the iOS’s lower 45.9 percent.
With the commendable market share that Android has in the global market and in the mature U.S market, I believe that Google is well positioned to monetize mobile.
Over the past several months, the huge discussion as far as smartphones and tablets are concerned has been emerging markets. Many tech heavyweights, including Intel, have ventured into this market. Nokia Corporation (ADR) (NYSE:NOK) specifically, has been upbeat about this market. In fact, Nokia CEO, Stephen Elop, made mention of emerging markets in a recent address. His mention, despite being purposely distant, exclaimed the company’s efforts in the market. Indeed, the Nokia Corporation (ADR) (NYSE:NOK) Asha line has managed to gain formidable share in emerging markets like Asia, Africa and Latin America.
With Android however, Google has a better chance of steering through this potent market better than its peers. Why? Google Inc (NASDAQ:GOOG) is nothing like Apple. Issues like cool brand perception have no place at the Google round table meeting. For Google’s board, sales volumes and market share take priority. That is why Google’s Android powers most budget smartphones under the $150 price mark.
Even if Apple Inc. (NASDAQ:AAPL), were to introduce a low cost ’ iPhone mini’, as hashed out by many analysts, it would not have the muscle to compete with all the low cost Android-driven smartphones in emerging markets.
Tyranny of numbers
In conclusion, I believe that the potential that Google has in the lower segment of the market is outstanding. This potential, coupled with big numbers in the wide market, transforms Google into a redoubtable force. Also the fact that mobile monetization has gained momentum suggests that these large numbers could translate into huge returns for Google.
Google’s case overtly demonstrates the power in numbers, or as I would put it; the tyranny of numbers. Its large footprint in the global market suggests that the only way the stock could go is up. I would recommend establishing a long position in the stock.
The article The Only Way That Google Could Go Is Up originally appeared on Fool.com and is written by Lennox Yieke.
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