One of the big investment banking firms, Piper Jaffray, thinks that Android is going to grow significantly over the next few years. Piper Jaffray has its finger on the pulse, banking a $7.4 million in net income last quarter indicates they know what it is they are talking about. The investment firm predicts that Android will obtain more than 50 percent of the market share in smartphones over the next five years.
The report from Piper Jaffray states:
‘We estimate Google control 14.9% of the smartphone market through Android in 2010, growing to 23.2% in 2012. For Apple, we expect the iPhone 15.9% of the smartphone market in 2010, growing to 17.6% in 2012. However, we believe the question is where the two platforms top out in terms of market share. An important factor for Android is that we ultimately believe that Nokia and RIM do not have the core software competency to be competitive in the smartphone space and will eventually need to adopt Android or potentially Windows Mobile Phone 7. Ultimately, we believe Android is likely to control over half of the smartphone market in the next five years. Apple’s essentially two phone focus (low price 3GS and higher price 4) will likely limit how much of the market Apple can control and we believe ultimately Apple’s smartphone market share tops out between 20-30%, which still offers significant room to grow’.
Basically, the vast range of Android devices will result in Google’s mobile operating system controlling a larger share of the market over Apple.
The Android invasion:
Two other points worth mentioning are market share is different to profit and expect only Apple/Android to dominate the market. The prediction is that Apple will still bring in half the profits from the smartphone industry, think about it like this, Android is expected to make $1.35 billion in 2012, Apple made $1.5 billion in its first quarter of operating. Other operators such as Nokia are expected to be squeezed out of the market.
Android will be grinning after this latest report, a great endorsement for their future. Apple may be facing some problem ahead, but it’s going to take a lot to remove the iPhone as the leader in the minds of the masses. Interestingly today the Apple stock dropped 0.37% while Google slumped 1.25%.