uploads///Google Android

Google Android Will Remain on Top for a Long Time

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Aug. 20 2019, Published 10:01 a.m. ET

Google’s (GOOGL) Android software will continue to dominate the global mobile operating system market. Android will also widen its market share. According to IDC, Google’s Android held an 85.1% share of the global mobile operating system in 2018. The market share will increase to 86.7% in 2019. By the end of 2023, Android will hold an 87.1% share of the mobile operating system market.

In contrast, Apple’s share of the mobile operating system market will drop. Apple’s iOS held a 14.9% share of the mobile operating system in 2018, according to IDC figures. However, Apple’s iOS share will fall to 12.9% by the end of 2023.

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5G phones to boost Android dominance

The arrival of 5G phones will be a major boost for Google’s Android market share, according to IDC. The 5G phones you can buy now run Android software. The list includes Samsung’s (SSNLF) Galaxy S10 5G, which T-Mobile (TMUS) and Sprint (S) already support on their 5G networks. However, Apple’s 5G iPhones might only start arriving next year.

Samsung has been the world’s top smartphone company for years. The company shipped 290 million smartphone units in 2018, according to IHS Market figures. Huawei and Apple shipped 206 million and 205 million smartphones in 2018, respectively. Huawei also bases its smartphones on Android software.

T-Mobile and Sprint are merging their operations to allow them to deploy a nationwide 5G network quickly, according to CNET. According to a study by Ericsson, there’s strong demand for 5G connectivity globally. An earlier study predicted that there will be 150 million 5G subscriptions globally by 2021. A new study predicts there will be 1.9 billion 5G subscriptions globally by 2024. Therefore, the early availability of Android 5G phones will help boost Android’s market share.

Android underpins Google’s advertising business

As we discussed previously, Android is important to Google’s advertising business. Usually, Android phones already have Google apps installed. Some of the apps, like the search engine and digital mapping apps, make money for Google through advertising. Therefore, we think that an expanding Android market share will help Google’s advertising business.

There’s $333 billion up for grabs in the global digital advertising market in terms of revenues this year, according to eMarketer estimates. Google alone will capture a third or $103.7 billion of the global digital advertising dollars this year. Facebook will capture about 20% of the global digital advertising dollars this year.

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