Android operating system is proving to be the most dangerous weapon, developed and used by GOOG, in a cut-throat competition between IT rival giants, Google and Apple. Android has been successful enough to capture US$ 5 billion share of all smartphone profits during the 1Q2013. The Android is, apparently, the best weapon in the hands of Google as compared to the iOS in the hands of Apple.
With an impressive current price/earning ratio of 26.22, the GOOG is, dominating, impressively, as compared just 10.50 of APPL but still the APPL appears to be giant with market cap of 412.69b where the same of GOOG is just US$ 300.9 b.
The performance of GOOG and APPL is evident from 2 graphs of stock performance during the last one year, Source: Bing Finance:
The Android is proving to be the best weapon in the hands of Google to fight the supremacy of Apple in the mobile operating software field with many smartphones as well the tabs are being operated by it. On the other hand, iOS, the major weapon of Apple is just available for the usage by Apple products only. This appears to be the basic flaw in the strategy of Apple.
As reported by Woody Oh, the financial analyst of Strategy Analytics, the major role in the best performance of Android is that of Samsung, the Korean electronic giant, as its smartphones’ current grip on the Android market share is 95%. An excellent working relationship between Samsung and Cupertino-Based Apple, the key to the success of Android depends, mainly, depends upon:
- An efficient supply chain
- Sleek products
- Crisp marketing.
It was, basically, the Samsung which secured the lions share in the smartphone profit otherwise, other smartphones using Android phones were nowhere in the competition. LG, another Android user, is having a share of just 2.5% in the Android market share and share of all other phones using the Android is just 2.7%.
Analysts are of the view that it is not the Google who is earning from android but Samsung.