Why Android’s User Base Is Growing at Such a Fast Pace



A popular mobile operating system

As we discussed previously in this series, Google’s (GOOG) licensed OS (operating system), Android, has been dominating the global smartphone OS market share. Since May 2014, the search engine giant has added 400 million users to its kitty, reaching 1.4 billion active users, according to Sundar Pichai, Google’s new CEO. The growth in Android users is, in part, due to the emerging markets of Indonesia and Vietnam, two countries that adopted smartphone technology in 2014.

According to a report from IDC, Android’s market share in global smartphone OS has shown remarkable growth compared to its biggest competitors, Apple (AAPL), which offers iOS, and Microsoft (MSFT), which offers Windows Phone and BlackBerry (BBRY).

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The untapped Android market

One of the unique pre-loaded services of the Android operating system is Google’s Play Store app—not to mention Google’s other key services like Gmail, Maps, and search. But many new Android devices in China (FXI) don’t use the licensed version of Google’s operating system due to the ban against Google in China.

But despite China’s ban against it, the country is still a lucrative market for Google. Google CEO Sundar Pichai announced in September that more than 1 billion people reported using Google’s Play Store in a select 30-day period in mid-2015.

For a diversified exposure to Google, you can consider investing in the PowerShares QQQ Trust Series 1 (QQQ), which invests 3.5% of its holdings in Google.

Keep reading the next part of this series, wherein we’ll look at the hot issue of ad-blocking in the industry.


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