How successful and popular is Android OS can be gauged from the fact that Google is on a rolls these days. As reported by Reuters news agency, Google’s shares hit an all-time closing high of $821.50 on Monday and some securities analysts are already forecasting the search company could soon be a $1,000 stock.
Its surge to new highs has come as its Android software dominates the mobile phone market and it continues to lead in mobile advertising. The gains have put Google firmly in third place among US companies in terms of market value after Apple and Exxon Mobil.
Google has been on a steep rise since late last year, hitting new highs multiple times, and is up 16.1 per cent since the start of the year. That makes it the highest-priced stock in the S&P 500 by more than $100 and puts it within striking distance of the median analyst price target of $851 a share, according to Reuters data.
Wall Street has grown more sanguine about Google’s transition towards a more mobile-focused strategy. Google has attempted to extend its lead in Internet search advertising onto a mobile platform, a shift forced by the increasing prevalence of smartphones and tablets, but that eats into margins. Over the past year, however, Google has managed to slow the average pace of ad-rate declines, while its Android platform continues to expand its lead over rivals such as Apple’s iOS.
While investors were worried earlier about how much money Google can make from online advertising, the company has garnered a lot of attention recently because of the popularity of its Android mobile software.
Google’s huge success is not good news for its competitors like Apple Inc., for iOS smartphone devices and Microsoft for its Windows smartphones on which Nokia has put all their eggs in one basket, in shape of Lumia devices. Android has become so popular that even small companies like HTC,Sony and LG and Chinese companies like Huawei etc., who were not in smartphone business in a big way, are getting rich dividends by running their smartphone devices on Android OS and of course, the credit goes to South Korean giant Samsung, which is instrumental in making Android as household name for mobile users.