Rise of the Android: Why Google Is a Strong Investment (Fool TV)

Think the world is Apple's oyster? The big news in tech circles last week was the revelation that Google's (Nasdaq: GOOG  ) Android passed Apple's (Nasdaq: AAPL  ) iPhone to become the No. 2 smartphone on the market, behind Research In Motion's BlackBerry.

With growth of the iPhone somewhat stymied in the U.S. as a result of Apple's exclusive carrier deal with AT&T, Google has done royalty-free deals with all the major carriers to ensure that its upstart Android gets pushed on consumers at the retail level.

Motley Fool analyst Eric Bleeker thinks this is a sly-fox strategy. Google may give up near-term, direct revenues from product sales, but the company is getting loads of what it wants over the long haul: data. By getting Androids into consumer hands, Google lays yet another trap for the data that fuels its powerful search engine (and fills its coffers). Hey, Apple investors -- does this make you nervous? Don't fret. There's a new iPhone due out this summer, and Apple's AT&T-free international growth has been nothing short of stupendous. You hear that, RIM?

For more from Fool TV:

Eric Bleeker does not own shares of any companies mentioned. Apple is a Motley Fool Stock Advisorrecommendation. Google is a Rule Breakers selection. The Motley Fool has a disclosure policy.


Read/Post Comments (4) | Recommend This Article (15)

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  • Report this Comment On May 14, 2010, at 3:16 PM, Retroactivist wrote:

    Eric,

    Despite posting the skewed data in your first paragraph, i.e. "Android passed Apple's iPhone to become the No. 2 smartphone on the market"(as opposed to "No. 2 smartphone on the 'U.S.' market), thank you for qualifying the statement at the end of your article.

    I wonder why everyone is pushing this skewed data so hard? I suppose not telling the whole truth isn't the same thing as lying.

  • Report this Comment On May 15, 2010, at 3:47 PM, TMFEditorsDesk wrote:

    Retroactivist,

    If you watch the video (the purpose of the article, I didn't actually write the content, just filmed the video), I state right off the bat that this is US market share only. I don't think anyone is "pushing" this skewed data, in fact I think I've taken pains to praise the relative value of both Apple and Google's strategies in the mobile market between this and other articles and videos.

    Best,

    Eric Bleeker (TMFRhino)

  • Report this Comment On May 15, 2010, at 8:47 PM, menachem18 wrote:

    Sounds like Google and Apple are using a similar business strategy with their respective products. Use one product to help you sell something else in one of their other products.

    Besides all of Apple's products being really cool and selling like hotcakes they also all tie into the Apple iTunes store for music.

    Google sells ads based on data that they collect for their search engine. So it only seems natural that they have a device that will tie into their main product.

  • Report this Comment On May 16, 2010, at 4:53 AM, ob20 wrote:

    what is taking apple so long to take over {hostile] google and then shut down the android os. this is standard buisness practice' buy out all competion' and apple has the cash to do it. maybe apple is not feeling the competion certainly not in profits.

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