Google's dominance of the global smartphone market appears to have peaked, but its controls on Android devices are strengthening, according to foreign media reports. According to Strategy Analytics, a market research firm, 84% of smartphones shipped in the third quarter of the world ran Google's Android operating system, slightly below 85% in the second quarter. "Android has reached its peak in the global smartphone market," said Neil Mawston, an analyst at Strategy Analytics, Nier Moston. Unless sales of rivals Apple's iphone fall sharply in the future – but that's unlikely – the global market share of Android will probably never be higher than 85%. "To learn more about Android, see the E-Mentor network's series of video tutorials on Android app development .
In the third quarter, Apple's iOS mobile operating system accounted for 12% of the world's smartphone market share. Microsoft's Windows Phone operating system has a 3% share, while the BlackBerry device shares 1%.
Even though Android's market share is unlikely to rise again, there is good news for Google.
First, the global smartphone market is still growing overall. Strategy Analytics predicts that global smartphone shipments will grow by 12% per cent in 2015.
Second, Google seems to be reversing the growing momentum of the deep-custom Android system, which was developed independently by handset makers, but removed Google's lucrative mobile apps.
In the third quarter, the number of smartphones with Android smartphones accounted for 39%, slightly more than 37% in the second quarter, in the total volume of mobile phones.
The Android system itself does not make a profit for Google, because the operating system is provided free of charge to handset manufacturers. But the operating system integrates a variety of applications, such as Google search, Google Maps and YouTube, the ads appearing on these applications will bring huge profits to Google. In addition, users can sell apps, documents, and subscription services through Google Play store, as well as give Google a certain percentage.
Mauston of Strategy Analytics says sales of smartphones with a deep custom Android system have fallen, thanks to the maturing of the Chinese smartphone market, which is mainly sold in the market. In addition, Google has enhanced its control of its operating system by launching the Android One project. The Android one project aims to provide inexpensive, reliable smartphones to consumers in emerging markets such as India. These phones are preloaded with Google's various services.
At the same time, Samsung's dominance of other Android handset makers is weakening, reducing the company's chances of seizing more of Android's control over Google's hands. In the third quarter, 25% of global smartphone shipments came from Samsung devices, down from 35% per cent in the same period last year.
Samsung has produced most of its Android devices and has long dominated Android, thanks in part to the company's huge commission on smartphone distributors, especially in emerging markets. The move gives distributors a big incentive to sell their products.
Samsung, however, lost to the fast-rising Chinese handset maker Xiaomi, which has wiped out Samsung's advantages in price. Samsung sells its smartphones at a higher price, each with a higher profit margin, while Xiaomi sells equipment at close to cost, and its profits come mainly from sales of accessories and various software.
In the past two years, Samsung's global market share peaked, trying to gain greater independence from Google by launching more of its own services on its Android devices, and to downplay the fact that its devices are running Google software. According to people familiar with the situation, this raises concerns within Google about the possibility of losing some control over the Android operating system.
Earlier this year, Samsung and Google reached some form of détente, and both sides agreed to sign a broad patent cross-licensing agreement.
Google's dominance in the smartphone market is likely to be the biggest challenge from regulators. The European Union's antitrust authorities are preparing to launch a formal investigation into the Android system, fearing that Google may prohibit rivals from promoting its services.
A Google spokeswoman declined to comment.
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The latest trends in Android global market share