Intense Google (NASDAQ:GOOGL) Android Growth
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For the first time in 2013, the global sale of smartphones climbed up to one billion units. IOS based smartphones from Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG) seized a dominating 94% of the market. According to the technology research firm IDC, in 2014, the overall market for smartphones will touch 1.29 billion units worth approximately $383 billion. Sounds unbelievable right? Well, get used to expecting the unexpected!
An IDC research manager stated that the Chinese players all around the world will sure win the race for the cheapest products. The premium market seems to be stagnant but the affordable phones are getting better day by day. Now the user doesn’t have to buy the premium phones to get the decent features required by all. Now what everybody is speculating about is how lower can these phones get? IDC foresights marketing of 1.87 billion smartphones worth $452 billion by the 2018.
The CAGR (compound annual growth rate) in unit sales between 2014 and 2018 is a decent 9.8%. In 2014 Android-dependent units are predicted to market an entire 1.o6 billion units which occupies 82.3% of the market. On the other hand Apple (NASDAQ:AAPL) is expected to sell 178 units which is 13.8% of the market. For 2018, estimates by IDC show 1.5 billion units of Android sales which cover 80% of the market and IOS sales of 240 million units which is 12.8% of the market share.
On the other hand, Microsoft Corp.’s (NASDAQ:MSFT) Windows Phone platform is expected to rise from 35 million units sold out in 2014 to 105 million units sold out in 2018. CAGR of Windows phone during this five-year period is 31.4% which is easily ahead of Android and IOS which have 9% and 7.8% respectively. Now if we come to the value of sales, Apple (NASDAQ:AAPL) maintains the edge over Android. Android’s sales worth increases to $275.25 billion in the year 2018 from $255.1 billion in the year 2014, which is a 1.9% CAGR.
Android’s sales share decreases from 67% to 61% in this five-year duration. On the other hand Apple’s (NASDAQ:AAPL) sales increases to $152.63 billion in the year 2018 from $116.5 billion in the year 2014, which produces a 7% CAGR. Apple’s (NASDAQ:AAPL) smartphone share revenue increases to almost 34% from 30%; whereas Windows Phone’s sales boosts to $19 billion from $7.8 billion, and its share of revenue jumps to 4.2% from 2%, for a 25.1% CAGR.
So the story remains the same as both the brands, Apple Inc. (NASDAQ:AAPL) and Android from Google Inc. (NASDAQ:GOOG) are running on an endless track to win this race, which apparently leads to more competition in the future.