Points to ponder, though
Once we move away from the Facebook Inc (NASDAQ:FB) aspect, however, there are a few newly-emerged reasons that might force Google Inc(NASDAQ:GOOG) to have to rethink future versions of or even the entire future of Android. The fact that Android has become too much of an open-source platform, if you know what I mean, has created a situation where so-called off-shoots like Facebook Home have been allowed to develop. Why do that in the first place?
And the problem can assume larger proportions. Take for instance, China, where most of Google-related services are blocked by the government. This also means that a host of Android phones activated and circulated in China have very little core relation to Google. This again leads to a situation where Google is unable to mine user data from such phones which helps it to generate more directed ads. And everyone knows that 90% of Google’s revenue is generated by its ad services. Google is not even benefiting from web search traffic from such devices, as most of them use one or the other among local Chinese search engines. In the end, Google’s creation Android, is actually benefiting handset manufacturers, like Samsung, by generating stupendous sales figures.
Solace in Apple, maybe
From that point of view, Google Inc (NASDAQ:GOOG)’s tech rival Apple Inc. (NASDAQ:AAPL) actually provides a huge benefit. Since Apple’s iOS is famous for its ‘walled-garden’ approach, that also means the software cannot be easily tinkered with. And a large part of Apple users conduct their searches using Google, which is where iPhones prove to be hugely beneficial for the company. Not only that, Apple’s recent Maps fiasco comprehensively proved the popularity of Google Maps among iOS users. That’s no mean feat.
At the same time, Android is still not highly regarded in corporate circles, as far as enterprise security is concerned, an aspect in which rival Research In Motion Ltd (NASDAQ:BBRY) has always scored brownie points. Again, the fact that Android is an open-source software that can be easily tinkered with does not speak well of Google as the inventor of that software. Add to it the fact that a recent report from Kaspersky Labs states that 99% of mobile malware targets Android, and you do perhaps realize why Google needs to go back to the Android drawing board, once again.
No clear and present danger as yet
Having said that, these are still minor chinks in Google Inc (NASDAQ:GOOG)’s armor, but some of which do have the capacity to build up on a larger scale. But that’s still a long, long way off, considering the sheer number of Android-activated devices the world over. And Google’s strength lies in the wide repertoire of its services, many of which are not solely dependent on mobile devices. So, sit back and relax. This is one stock that should stand you in good stead for an equally long time to come.
Subhadeep Ghose 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.
