When Google purchased Android just 10 years ago, virtually no one in the technology industry saw the reason why. The $50 million purchase was a side bet which grew in popularity as technology changed.
Android is an integral part of tech. In 2005, Android’s ability to run smartphones, tablets and other machines was a hope for the future – and now it’s a reality. Android is an integral part of the tech market and Google’s future growth. Android is not only the world’s most popular smartphone operating system, but it is the most popular operating system of any kind. More than one billion devices that run on Android were sold in 2014 – which is five times the number of Apple devices, and three times the number of Windows devices sold in the same time period.
Google has to decide. Yet despite all of this dominance, competition is on the rise and Google is faced with making some important decisions if it wants to stay on top. It is facing competition from other smartphone makers from developing countries. These makers are pushing their own modified versions of the Android software. In addition, Google is facing competition from consistent competitor Apple; which is seeing a record number of sales due to people switching from Android platform devices.
Android profits have been hit hard. Although sales have been relatively strong, profits for Android have been hit hard. They declined 44 percent in 2014, and analysts wonder if a search company can ever make money from Android. A few smartphone manufacturers are extracting profits from the Android model – but Google argues that Android has never been about profits – but about users.
It’s a good thing Google has this attitude because there are several problems that plague Android ownership. Google makes most of its revenue from advertising, but Android users tend to spend less than their iOS using counterparts. In addition, Google pays billions to Apple in order to make their search engine the default search for iOS devices. However, the solid income from Google Play and heavy investments in other areas of Google keep the company confident that Android won’t cripple it.