December 15

GOOGLE ANDROID
Group Members Asim Ali Fizza Ateeq Khadija Sikandar M. Nauman Rashid Syed Muhammad Hilal

2012
CASE STUDY

FA09-BBA-112 FA09-BBA-111 FA09-BBA-041 FA09-BBA-061 FA09-BBA-090

Introduction
Since Marconi transmitted radio signal and Alexander Graham Bell invented the first telephone, technological breakthroughs in the telecom industry have continued to make human lives easier. The advancements in technology have made possible many things that once seemed impossible. The world is much different now than it was decades ago. Offering almost the same functions as a laptop, in a more portable form, smartphones have become very popular nowadays. When it comes to talk about smartphones your mind just clicks on the thought that hey hes talking about android phones. Bingo, its the same android that nobody knew a few years back has become the DNA of the smartphone industry. People dont know why they need an android phone but they do, acting just like zombies who always move forwards slowly and relentlessly but dont know why! Google has been able to hypnotize the people of the Global village with its Green doll and no doubt it has been able to create a mark in the world, although it did and is facing a lot of difficulties and challenges yet the company has shown tremendous growth and is continuing to grow with the same pace over the years.

Corporate History
Android, Inc. was founded in Palo Alto, California in October 2003 by Andy Rubin, Rich Miner, Nick Sears and Chris White with the aim to develop smarter mobile devices as quoted by Robin who previously was known for the Danger Hiptop revolution which was an EDGE/GPRS/UMTS smartphone. Despite of all the success the Co-Founders incorporated Android Inc. displaying that they were only working on software for mobile phones. Google; the giant known for its long list of acquisitions later on swallowed Android Inc., on August 17, 2005 making it a wholly owned subsidiary of Google yet key employees of Android Inc., including Rubin, Miner and White, stayed at the company after the acquisition. Not much was known about Android Inc. at the time, but many assumed that Google was planning to enter the mobile phone market as covered by Bloomberg BusinessWeek who stated that Google Buys Android for Its Mobile Arsenal and the environment began to be alarming for the mobile industrys Giants. Googles biggest concern was the unmatched rivalry of the Smartphone Giant Apple with iPhone and the iOS. So on November 5, 2007, a consortium of technology companies known as Open Handset Alliance, including Google, HTC and Samsung, wireless carriers such as Sprint Nextel and T-Mobile, and chipset makers such as Qualcomm and Texas Instruments, a total of 84 companies in the alliance unveiled their selves, with a goal to develop open standards for mobile devices. Google officially jumped in the mobile industry by offering the first phone to run Android which was the HTC Dream, in October 2008. Since then Android has seen numerous updates which have incrementally improved the operating system, adding new features and fixing bugs in previous releases. In the shortest period of time Googles little baby Android is being adored by nearly every person of the planet, It just got in the DNA of People to love the green doll as covered by CNET on 12th September 2012, that Android holds 75% of the smartphone market share

with 500 million devices that have been activated globally till date with an activation rate of 1.3 million devices per day carrying a vision of more than just being a mobile platform rather support every electronic piece on the face of the earth as stated by Eric Schmidt Our goal is not just a single device. Our vision is a mobile platform that runs on many different devices

Android Operating System

Android is a Linux-based operating system designed primarily for touchscreen mobile devices such as smartphones and tablet computers. Android is open source and Google releases the code under the Apache License. Android is open source, which focuses on customization where Google publishes the source code of every version freely. Its open source code and permissive licensing motivates device manufacturers, wireless carriers and enthusiast developers who can use it in different phones and applications after making certain alterations and changes according to the requirements of that phone. Since Android was designed for touchscreen mobile phones its interface was developed in a manner that loosely corresponds to the real world. It is based on direct manipulation using touch inputs like swiping, tapping, pinching and reverse pinching to manipulate onscreen objects and the responses are designed to be immediate to provide a fluid experience to the user. Android Devices boot to the home screen which is filled with icons that used to launch applications and widgets that display live, auto-updating content such as the Facebook posts. The homescreen usually comprises of multiple pages that users can swipe back and front and are highly customizable so the users can adjust the looks of their devices as per their tastes and preferences. But thats not all android has an inherent memory management system (RAM) in it as well to keep power consumption at a minimum since most of the devices running Android are battery powered. The system works in the manner that it suspends the memory of application without shutting them that are open yet not being used by the user, thus having

a dual benefit that apps in the background dont waste power needlessly and the app does not need to be reopened again from the scratch. Additionally, Android has been able to raise a large number of applications that extend the functionality of devices which can be acquired through Googles Play Store, Amazon Appstore or through any third party source. The Play Store application allows users to browse, download and update apps published by Google and third-party developers, and is pre-installed on devices that comply with Google's compatibility requirements.

How Android Grasped the Market

Android has rapidly emerged as a giant killer in the mobile world, proving capable of a task many thought impossible: taking on the iPhone, and for the most part, winning. Androids market share has exploded year on year and it holds an almost fanatical fan-base: much like Apples critically acclaimed mobile phone but the big question is how it made it so far? Androids Ubiquity Almost every kid has gone through the stories of United we stand divided we fall, Im sure Larry and Sergey learned their lesson form it. Google devised a policy which changed the rules of competition in the market and was able to turn the one on one competition into a few against many horses race. One of the biggest reasons behind androids success and dominance in the mobile industry is its Ubiquity the Open Handset Alliance (OHA) led by Google. Google realized it well that jumping in the mobile industry alone would only result in showing losses in the balance sheets thus it pulled the strings of 84 companies including handset manufacturers, software companies, mobile operators, semiconductor manufacturers and commercialization companies in the project who made the world aware of the innovation that was coming to their doorsteps. The combined marketing and distribution efforts of all the OHA members not only made people aware of Android but they ensured that it was available to them at any corner of the universe. We know the second most suitable smartphone in the world would probably be

IPhone but it had its own problems like if you wanted to buy an IPhone in 2009 in USA you had no option but to go with AT&T. At that time Motorola launched the Motorola Droid that came with Android 2.0 with Verizon who joined the agreement with Google. Verizon explicitly promoted the Droid as an IPhone alternative. Launched on October 17, 2009, TV spots and an associated website made "entertainingly combative" claims listing features then lacking on the iPhone, e.g. "iDon't multitask", only mentioning the name of the Droid in the final frame, reading "Droid Does" At the official launch event on October 28, 2009, Verizon's Chief Marketing Officer John Stratton described the campaign as a spoof of Apple's iPhone ads, intended to "wake up the market both these smartphones were priced at the same level of $199 and $599 with and without contract but the Motorola Droid shook the IPhone in multitasking, a superior 5MP camera as compared to a 3MP IPhone camera and a higher 3G talk time of 1.6 hours above IPhone available with Verizon the largest mobile operator in USA in 2009. Open Source Approach Another major and strong reason of the success of the Android is the reason that it is an open source program. Unlike Linux which is open source yet it has no central control Google is the controlling authority of Android and keeps a check and balance on it. People like the open source approach because of the fact that they can contribute towards the development of the product and can actually see the things that they want to see in the product. The open source approach created a win-win scenario for Android because it talks about the mutual benefits of all the parties engaged in the process. For Manufacturers They received a fully functional and highly customizable operating system for their devices for FREE. For Users A highly customizable operating system that they could blend according to individual preferences. For Carriers An alternative to IPhone, high number of OEMs and devices to choose from.

For Enterprises A large number of productivity apps. For Developers A huge market for developing and writing applications and a platform offered by Google (PLAY STORE) through which they could reach the end users. Google Developers Community Smartphones are known for multitasking and speed but that requires applications! Google has been playing fair with the developers as it offers its source code of every updated version of android that is released, Google offers Android Software Development Kit (SDK) to developers interested in developing for android which includes a comprehensive set of development tools which includes a debugger, libraries, a handset emulator based on QEMU, documentation, sample code, and tutorials and with the rapid boost in android platform it has also grown to become a favorite among mobile developers as Google announced a total of 2.5 billion downloads of application solely from the Play Store. Android has the most active community of developers and enthusiasts who use the Android source code to develop and distribute their own modified versions of the operating system. These community-developed releases often bring new features and updates to devices faster than the official manufacturer, and also provide continued support for older devices that no longer receive official updates or bring Android to devices

that were officially released running other operating systems, such as the HP Touchpad. Cyanogen Mod is the most widely used community firmware of Android and acts as a foundation for numerous others. The number of applications thus added to the Android family is thus rising very rapidly and Google had left behind Apple in the number of applications created for end users in October 2012 with reported number of applications for Android exceeding 700,000 applications in multiple categories which is a driving force of Androids success. Affordability Before Google jumped into the mobile industry with his little green doll smartphones were often referred to as status symbols and extremely expensive. An IPhone 3GS costed roughly $600 in 2009 but Google turned the smartphone market and took it to another level of competition where the 3 billion market of mobile industry now has a broader range of price range of smartphones. Now days the market is full with low budget android devices like the Samsung Galaxy Y and HTC wildfire starting from $150 so many new potential customers are approaching android. As you can see, an Android phone can definitely be a cost-saving alternative to an Apple iPhone. These factors have allowed Android to become the world's leading smartphone platform and the software of choice for technology companies who require a low-cost, customizable, lightweight operating system for high tech devices with a global market share of 75% as of 2012 with 136 million devices shipped beating all the other operating systems in the market.

Android in Pakistan
It was predicted by the market research firms that Android would blow up in its competitors faces. Android will become the second-largest operating system in 2010 and challenge Nokias Symbian for the number one spot by 2014, claimed technology analysis firm, Gartner, on September 10, 2010. This remarkably justifies how the free operating system, coupled with cheap hardware, is penetrating into the populous developing countries. Pakistan is one amongst many such countries that have been, until recently, devoid of the option of purchasing cheaper Smartphone. In a world having billions of mobile-phone users, Pakistan is ranked 8th worldwide and 5th in Asia, in terms of mobile phone usage. Nearly 67% of the Pakistans population uses mobile phones and 23% of them own Smartphones. Android has been gaining immense popularity and significant attention from customers in Pakistans growing mobile market. The first android phone to be officially offered in Pakistan by a local mobile carrier was Motorolas Milestone, more popularly known as the Droid. All sorts of latest Android phones are now available in Pakistans market including the most popular sets ranked by PC World i.e. Samsung Galaxy Nexus, HTC One X, Rezound, T-Mobile MyTouch 4G Slide, Motorola DROID RAZR MAXX and Samsung Epic Touch 4G. The android phone market caters both economical and costly sets and includes cheap sets like Galaxy Y and HTC Explorer as well as latest expensive sets like HTC One X and Galaxy NOTE etc. Although the overall share of Smartphones in Pakistan is comparatively lower, it is estimated to increase significantly. Apples iPhone has still not been launched in Pakistan officially and since Android took off, Google stood to benefit from the first mover advantage. In Pakistans mobile phone market, it has also benefitted from the fact that phones running Android can be disturbingly cheap. With the increasing trend of local carriers offering phones running Googles free operating system, Android is also observed to be making its way into Pakistans market from the fact that Pakistan Air Force (PAF) manufactured and introduced Android tablet, PACPAD.

Previously, PAF also launched their net-book and an e-book reader as well. Being initially manufactured at Kamra, the introduction of PACPAD is aimed to provide cheaper solutions to local consumers. Most downloaded Android apps in Pakistan are iQuran, CamScanner, Advanced TaskKiller, AccuWeather and Barcode Scanner. Barcode Scanner is the only one amongst them having listed in top 50 downloaded applications internationally.

Challenges to Android
Although Googles little green doll has been the most successful story of the century which holds on to three quarters of the smartphone market in the global arena but being popular is not always good and the old phrase often credited to the late P.T. Barnum, theres a sucker born every minute, can definitely be used to describe some aspects of the mobile industry or more specifically for Android. Android Malware Threat Key reasons such as its Ubiquity and open source nature contributed strongly to the success of Android but its enormous growth has led the focus of the devil upon it and is turning to a disadvantage to Google. Malware has been an issue for Android since the beginning but now it has gone too far when Sophos, a popular anti-virus company released its 2013 Sophos Security Threat Report, in which it named Android as the most targeted platform of the year. According to another security research firm Kaspersky Labs, the volume of new malware targeting Android devices nearly tripled in the second quarter of 2012. Over the threemonth period, the company found more than 14,900 new malicious programs targeting the platform and thus Android malware continues to dominate the mobile threat landscape with a whopping 51,447 unique samples detected in the third quarter. Nearly half of the malicious files were classified

as multi-functional Trojans that were programmed to steal data from smartphones a quarter of the malware was made up of SMS Trojans, which are capable of sending text message to premium-rate numbers without the owners consent, and 18% were considered backdoor threats that can give hackers full control over an infected device. Yuri Namestnikov, Senior Malware Analyst at Kaspersky Lab shared his views about android after announcing the report, In the near future, we expect not only more malware, but more effective and dangerous malware targeting Android Based on the level of insecurity that has arisen federal Bureau of Investigation (FBI) issued a warning to android smartphone users via its Crime Complaint Centre (IC3)based on the verdict of various security companies claiming that it has risen by anything from 216% to 700% over the last three months of 2012. The increasing Malware threat is very alarming for Google that needs to address the issue as soon as possible if it to retain its position of the best operating system in the world. Microsoft Threat Based on its history Microsoft, as quoted by an analysts is a lot like a freight train: it may be fat, bloated, and heavy, but once it finally gets up to speed, it's a force to be reckoned with. Although Microsoft is not a big player of the mobile industry but with the evolution of Android Google has stepped its foot on the lions territory and now the king seeks to regain control of his kingdom. Although there is no denying that Android is also so powerful that it has shaken and beaten the market giants. Android was originally developed for touchscreen smartphones however its nature of customization has led companies to opt it as the basic operating system for tablets and notebooks etc. here is where it the balance was disturbed. Microsoft having sold more PCs than the number of cars in the world having a 1 billion users market, after quite patience has initiated its engine and launched Windows 8 operating system platform as an interactive and intuitive one which has shown to have impressed many of the windows fans round the globe. Now the Microsoft knowing the significance of applications has put huge efforts in developing applications for tablets that

Android lacks. The company is vigorously promoting its Windows Store by attracting as much developers as it could by offering an 80% share in revenues to developers as compared to 70% of Android and within a short span of time Microsoft has even surpassed Apple which held 13,000 applications in only one month time period and thus 40 million Windows 8 licenses have been sold in first month of arrival.

Microsoft's Windows App Store Is Already Smoking Apple's Mac App Store Business Insider Microsoft has also launched its own Windows 8 based Tablet known by the name of Surface which is one great piece of hardware at a $499. This poses a serious break onto Android growth of Tablet OS and the current android tablets being sold in the market may become history. Apart from that Windows Phone 8 from Nokia the leading giant in the shape of Lumia 920 and 820 are attracting a large number of audience since only these two mobile devices have raised Nokias Market share up 1% in just one month because of the new WP8 OS combined with innovative accessories offered by Nokia, the wireless charger for instance, while two WP8 mobiles are awaited from HTC namely HTC 8X and 8S which are receiving huge pre-orders and HTC 8X has been showing the status of Back-ordered even on Amazon. In the US Steve Ballmer, chief executive officer of Microsoft said at 2012 annual meeting that

Windows Phone 8 has been on sale for a few weeks and is off to a great start. Handsets made by HTC and Nokia are getting rave reviews and have initially sold out in many countries, Windows 8 based mobiles and tablets may be a great start for Microsoft and Nokia as well however it poses a serious challenge to Android which needs to be thought off wisely. Apple IPhone 5 in USA It seems that Eric Schmidt has either been underestimating the capabilities of the rivals or overestimating the potential of the green doll. Apple has been the leader of the smartphone industry since the inception of the IPhone and they were more than just proud of it. Android took away its pride in many markets of the Global economy however in the US the tables have turned in the favor of Apple with the launch of IPhone 5. Following the successful launch, sales of iOS devices have overtaken Android in the U.S., according to Kantar WorldPanel. The research firm found that in the past 12 weeks from August to October 2012, sales of Apple smartphones accounted for 48.1% of the market compared to Androids whose share dropped from 63.3% to 46.7% in US. Based on the figures Kantars Dominic Sunnebo said, "The last time we saw iOS overtake Android in the U.S. was when the iPhone 4S was released and Apple managed to retain its lead for three consecutive periods, This time we predict that Apple will beat its previous high of 49.3% and achieve its highest ever share of the U.S. smartphone market within the next two periods." IPhone has been in the market since far long and it has a high number of loyal customers, Kantars data reflects that there was pent-up demand for the iPhone 5 and after its launch in September Apple had experienced supply constraints yet it has been able to take hold of the market. Apples loyalty remains high as 62% of IPhone 5 sales came from existing iPhone owners while 13% switched from Android, 6% from BlackBerry devices and only a

small number of first time smartphone owners bought iPhone 5 handsets. Kantar also reviled an impressive survey results that 92% of existing iPhone owners, additionally, noted that their next upgrade will be an Apple device. Thus Google needs to sharpen the saw to remain in pace in US against the one smartphone that is the king of the ring.

Androids Response So Far

People prefer android over the iOS and the Windows 8 platform so far because its flexible, its customizable and its totally free but with the challenges that they face right now Googles green doll is in a state of fear and Google has now understood really well the potential of the challenges they face and are providing healthy solutions. Bouncer Antimalware System With the rising number of malware android users have started to lose a sense of security and finding a solution to the issue remained the top most priority for Google itself. In the start of 2012 Google introduced an antimalware system known but the name of Bouncer Antimalware system that is transparent to the end users and scans the applications that are submitted to the Play Store for any malicious content. As a result the company officials said that there was a 40 percent drop in downloads of potentially malicious apps from the market. However there are a great number of third party application developers that offer files APK from other than the Play Store so the issue still remained at the top threat despite of little success achieved by Android. To address that issue Android geniuses have come up with another solution. The most recent Android 4.2 version may not be a revelatory upgrade over Google's original version of Jelly Bean, but the area that received attention was security where Google added a malware scanner that instantly analyzes side loaded or third party apps for potential threats. Android VP of Engineering Hiroshi Lockheimer told Computerworld that "We have a pretty good understanding of the app ecosystem now, whether something's in the Play Store or not"

However a computer scientist at North Carolina State University has put Google's solution through a thorough test and found that barely 15 percent of malicious samples were properly identified by the scanner and also the percentage of Android 4.2 is only a total of 0.8% of the total which slows the results of the efforts of Google. Microsoft Threat Despite the fact that Microsoft has been offering 80% revenue sharing policies but that may only attract some loyal Microsoft developers since the 80% revenue sharing starts when developers exceed a limit of $25,000 sales which is a high target volume whereas Android developers get a 70% share of revenues but since Google has achieved a global 75% market share developers are more attracted because of a huge market. Also Google is capable of attracting new developers easily to the developers community because developing for Android is free and Google itself offers a specialized Software Development Kit (SDK) for the development of android applications while for developers who want to develop for Windows 8 require purchasing licensed software such as Visual Studio thus Google has ensured developers of a healthy platform that they can develop for without bearing any costs. Android has launched Samsung Nexus 10 in responses to Microsofts surface tab. The Nexus 10 has been launched with a competitive price of $399 whereas surface tabs price starts with a price of $499. Nexus 10 is created in partnership with Samsung and comes with a blazing fast dual-core ARM Cortex A15 processor and advanced MIMO Wi-Fi, which has the power to enhance the web browsing speeds up to 4 times fasters. Nexus 10 also provides a new feature of sharing and customization where one can share the tablet with friends and family, with separate customizable spaces for each person. Nexus 10 lets each user have their own homescreen, wallpaper, apps, storage, and more in an approach to reach the goal of the century that is mass customization. Above all there are more than 700,000 applications for Android available on the Play Store as compared to mere 21,000 applications on Windows 8 platform that further gives the customers a reason to select Nexus 10 above Surface or any other tablet in the market. Nexus 10 also promises the availability of Hit movies on the Play Store to be available in a snap for users thus enhancing further the quality and customer delight.

Google Nexus 4 VS Apple IPhone 5 Apple has always been able to maintain a large number of loyal customers because of its premium quality and exclusive features that it offers incorporating all in one device the IPhone 5 it took on the entire flood of android devices and took hold of the US market with the highest market share. There has always been the issue of carriers that influences the choice of customers of smartphones but now Googles next Flagship phone is the LG Nexus 4 which has been released on 13th December 2012 has the potential to take on the IPhone 5. The awaited Nexus 4 is to come packing a quad core processor for the ultimate gaming and application experience along with a 4.7 HD screen for users as compared to the dual core processor packed with a 4 screen that comes along IPhone 5. The Nexus 4 came out with a stunning 8MP High definition camera capable of shooting in 1080p full high definition videos and for snap shots Google has introduced the amazing photo sphere camera capable of capturing in multiple positions. All these features have offered at a price of $299 as compared to IPhone selling at a price more than double of Nexus 4. Through this Google has created the best fit of Cost and quality which is expected to show positive results for Android.

The Big Question!

Google has no doubted become the worlds largest operating system in just half a decade with almost all of the market gone crazy for its Android and Eric Schmidt forecasts that the number of Android devices based its growth rate is expected to hit a billion within the next year. Google aimlessly targets the highest market share approach but the big question that arises out of it is what does it give to Google? Or more accurately where are the profits? Market share is only one part of the story but investors are more concerned with the outcomes as quoted by Paul Marsden, Business is all about solving peoples problems at a profit Android is the core reason that has turned the tables for many handset manufactures, take Samsung for instance research indicates that people are less concerned about Android rather handsets remain the center of attention as proved by figures indicating 50.8% of total belonging to the old Gingerbread family (2.3.x) while the latest Jelly bean (4.1 4.2) accounts for only 6.7% of the overall usage. That explains why Samsung is a hit and others are yet facing trouble capturing the market because Samsung marketed its Galaxy Series well enough and as a result Samsung who picked the pace because of Googles Android has exceeded in profits than Googles overall profits from all its operations and Googles income is experiencing a fall. So what should Google do in order to cope with the situation?

Teaching Notes
No doubt new operating systems are entering the market but then again there is no doubt that the little green doll has dug real deep into the market and the fans love it for such reasons the experts round the globe view Android as almost immune to the competition in terms of operating system at least up to 2016 based on the survey conducted by Gartner. The challenging question to Google is that due to the mass marketing of handsets by manufacturers (Samsung) the customers are place their bets on the basis of the quality of mobiles which explains why Samsung Galaxy series have boosted the income in a manner where it even overtook the search giant, in such way other manufacturers might lose their confidence in Android. So what should Google do? Jump back to where the story of Android began, Android was successful because of the Open Handset Alliance who collectively made it ubiquitous in the market. The strategy was purely integration and the same solution is for Google even now! Google needs to jump into the hardware industry as well to boost its revenues but jumping in the industry without experience wouldnt give positive outcomes either. But come to think of it Google acquired the Motorola Mobility in the start of 2012 which has all the necessary ingredients to manufacture cutting edge smartphones as proven by the history of Motorola Droid Series that challenged the IPhone. Available on almost every carrier Motorola has an already developed network and supply chain and now when Google owns Motorola it can easily jump into the handset manufacturing biz and by offering its Flagship phones via Motorola big two can make a mark on the planet. Apparently it seems in quite some ways that the HTC devices are superior to Samsungs devices but HTC isnt much of an advertiser like Samsung thus it fell far behind. The same could happen to Motorola as well since it doesnt have a very large customer base in terms of market share. Actually the set back of Google is that it has rather been focusing on individual aspects of operations but a focus on the systemic approach where the hardware manufacturer, software developers and the marketers should work along to spot the edge they have and

convey it to the audience of the planet earth just like in the auto mobile industry what Toyota has been doing over the past few decades with the TPS approach integrating with suppliers, distributors and moving along as a single unit. Google has undertaken the initiative by integrating with the hardware supplier (Motorola) and has done real well in understanding the significance of the impact marketing tactics that companies use and thus it has hired Brian Wallace, Vice President, and Strategic Marketing at Samsung Telecommunication to work for them and completed the requirements of the systemic approach and now the joint collaboration has started operating which has posed the threat on the rivals as indicated in news and blogs The Google-owned mobile phone manufacturer is hard at work on a sophisticated handset, which has been dubbed internally as the X phone The Wall Street Journal

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