) recently announced that there are now more than 300,000 Android
phones activated every day. This means that Android's share in the
smartphone OS market could increase at a faster rate and threaten
competitors like Nokia (
) Symbian, Apple (
) iOS and Research in Motion (
) BlackBerry OS market share.
Higher Android adoption would benefit Google by enabling more
mobile searches from Google's platform as Google search is the
default search engine on Android phones. Google already leads the
search market with a share of around 68% while competitors Yahoo (
) and Microsoft (MSFT) are way behind Google. Google Search
constitutes around 70% of the
$632 Trefis price estimate for Google's stock
, which is about 6% higher than the current market price.
Android Popularity Leads to More Google
If Google's claims of 300,000 Android activations per day are true,
it could mean 27 million Android activations for a quarter. In Q3
2010, Android had about 20 million activations with a share of
around 25% in the smartphone OS market. This share has grown
at a fast pace in the past one year from under 4% in Q3 2009.
With 27 million activations per quarter, Google is bound to gain
more market share in Q4 2010 and beyond. Google search is the
default search engine on Android phones and so Google's search
market share should benefit from the rapid adoption of Android.
Mobile search is becoming important for Google and in another
article we discussed how Android adoption and other driving factors
could create upside to Google stock. (
Google's Stock Worth $680 on Mobile Search
Google has increased its search market share in the past from
around 61% in 2007 to 68% in 2010, and we expect it to continue to
increase to around 72% by the end of Trefis forecast
period. However, there could be an upside of 8% to our
estimate for Google stock if rapid Android activations' growth
means that its search market share increases at a faster rate to
reach 80% by the end of Trefis forecast period.
You can see the complete $632 Trefis Price
estimate for Google stock here