Why Google’s Android keeps dominating the smartphone OS market

Analyzing the key trends for mobile phone companies in 2Q14 (Part 1 of 15)

Android continues to dominate the smartphone operating system market

In this series, we’ll discuss the latest key trends that are affecting the mobile phone industry. According to a report from Strategy Analytics and as the chart below shows, Google’s (GOOGL) Android continues to dominate the smartphone operating system market. It has, in fact, gained share in this market—from 80.2% in 2Q13 to 84.6% in 2Q14.

This gain has come at the expense of Apple’s (AAPL) iOS, Microsoft’s (MSFT) Windows Phone, and BlackBerry’s (BBRY) operating systems. All these smartphone operating systems lost market share during the same period, as the chart below shows.

Google has taken a few initiatives to strengthen its position

A couple of months back, Google introduced the enhanced version of Android’s operating system for smartphones, Android L. Google announced a number of updates and new features in Android L, including the ability to unlock your phone without entering a password if you’re connected to a trusted Bluetooth device or Wi-Fi network. The new operating system has an enhanced design, with brighter colors and sharper contrast. It will also help you emphasize the most important items and notifications on your screen.

Google also introduced the Android One operating system especially for emerging markets. Google has planned to partner with a few smartphone vendors to introduce sub-$100 smartphones in India based on Android One. This is Google’s strategy to capture the next billion people who don’t have smartphones, as emerging markets are price-sensitive.

Overall, Android’s increasing presence also helps smartphone players like Samsung (SSNLF), which is the largest smartphone hardware player in the world and which uses the Android operating system on its smartphones.

Continue to Part 2

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