Why Goldman Thinks Negatively About Android?
Bangalore: Google Android is known to be the strongest among the operating systems in the mobile market. Paul Sagawa, Sector & Sovereign Research analyst told Zach Epstein on bgr.com that, “Google is the greatest data processing company on Earth. Google's powerful IT infrastructure, Android market momentum, and portfolio of leading cloud assets, such as search, video streaming, and internet advertising, are a competitive bulwark for the company’s core revenues and a springboard to future growth and new opportunities”.
The Android operating system constitutes 75% of the total mobile market. However, with this position what made Goldman term Google Android as being ‘Challenged’ in mobile. Here is Jay Yarow’s explanation about why the Android operating system is challenged in mobile as mentioned on businessinsider.com.
1. It was found that Google pays over 75% to be the default search engine. They deliver 70% of Smartphone last quarter while Apple has a mobile internet traffic of 60%
2. Compared to Apple, Google doesn't own a popular mobile device such as the iPad and iPhone. People prefer buying an iPhone when they have to choose between Apple and Android. Although Google has got the Nexus 7 and Nexus 10, it's hard to buy them even after they have got so many good reviews.
3. If apple's iPhone and iPad continue to sell in this way, Google's revenue will continue to decrease because of the traffic acquisition cost.
4. Goldman believes that Google will have a tough time competing with Microsoft, Amazon and Apple. Google is investing in various big projects to be at par with the other big names in the industry
Goldman sees another big challenge in front of Android and that is the difference of Android market share and use. It should try to convert users into controlled user to make them loyal.
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