2017
Android Increasing Global Market Share at Windows’ Expense
Google takes the fight up to Microsoft in global operating system internet use, with its Android quite close to overtaking Windows. www.tradezero.co
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When you’ve begun trading stocks online, you need to remember that market dominance by a company may not last forever. While dominance may be the reason for its high stock value, that may come down if the dominance begins to decline. But it’s important how the company reacts to its decreasing dominance by venturing into other fields. This is a phenomenon quite common in the tech industry.
Android on Course to Top Windows With people all over the globe increasingly moving towards smartphones for their web usage, it isn’t surprising that Android has captured 37.4% of global OS internet usage according to StatCounter. That’s a little over 1% less than the 38.6% market share held by Microsoft’s Windows. So it’s a battle between Microsoft ($MSFT) and Alphabet ($GOOG) in terms of OS internet usage spanning all devices – mobile, tablet, desktop and laptop though Windows is still the most used operating system for checking email and surfing the web on the desktop and laptop. But that’s scant consolation for the once dominant OS since smartphones are now the rage when it comes to browsing, web searching, and enjoying web services such as movies, social networking and games. With a variety of devices being used to access the net, Microsoft knows that before long it will just be one of the many operating systems out there rather than the dominant one. And that will affect its earnings and investor opinions, and eventually the stock value.
The Smartphone Boom Has Affected Microsoft The thought of Android matching the market share of Windows was considered insane not so long ago. But then the smartphone boom began. That’s where Microsoft hasn’t been strong. Its Windows Phone operating system never truly established itself. While it enjoys 84.1% market share in the PC world, it currently has no answer for the mobile and tablet dominance of Google’s Android OS. www.tradezero.co
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Much of Android’s market share comes from Asia, where it enjoys 51.8% of the share while Windows only has 29.8%. This is a continent with a significant lower middle class population that finds it economical to experience the internet from the mobile phone rather spend more to buy a laptop or desktop. It’s the most populous market too, so Microsoft needs to factor that in. In North America and Europe though, Windows has been able to maintain its sizeable advantage.
What’s Next It’s scary for Windows, considering that only in 2012 its global internet usage market share was a whopping 82%, while Android’s market share was an insignificant 2.2%. If this rate of progress continues for Android, Microsoft officials should be having sleepless nights. According to StatCounter data, October 2016 was the first time mobile and tablet internet usage exceeded laptop and desktop internet usage globally. But Microsoft isn’t just standing around idle. It has taken a few steps to ensure it doesn’t focus on PC alone anymore. $MSFT is moving towards providing cloud infrastructure and though it has entered the field slightly late, it is acquiring the market gains it needs. But it hasn’t given up on mobile. It has taken its own spin on things by launching the all-in-one Microsoft Surface Studio device which functions as a desktop, tablet and notebook.
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