Tomahawk, WI 9/10/2013 (BasicsMedia) – The share price of Google Inc. (NASDAQ:GOOG) was recently surrounded by many bullish commentary expecting it to touch psychologically important level of $1000. The company celebrated its 15th anniversary recently in the previous week and proved successful to move from a startup internet service provider launched by Larry Page and Sergey Brin to a website whose name is almost synonymous with internet searching today. It however proves essential to analyze and understand the highly competitive markets in which the leading search engine player is presently operating.

Stronger competition

The business landscape of Google changed over the past few years and the competition for each operating segment of the company is getting stronger. While Google earns its major source of revenue from search advertising segment, it is also worth noting that mobile search advertising presents higher contribution of revenues in the recent years. It is expected that the search engine provider would bag revenues of $6.8 billion by the end of FY13 from its operating businesses, which is almost double the revenues reported by the company for the previous year.

Android Operating System

With the increasing demand and use of smart phones across the global markets, Google also proved successful to tap this market share through its Android operating system which is equivalently popular and highly competitive relative to the iOS of Apple used in iPhones and iPads. It is thereby expected that Android OS would prove efficient to grab higher level of revenues equal to that of iOS. While it is understood that Google will have to travel a long way before reaching this milestone, investors may stay quite confident that the company is taking all possible efforts to make this dream come true.

In a recent research report presented by ABI Research, it was quoted that Google’s Android successfully prove in increasing its revenues by 65.9% for the next twelve months. Google is working on all possible ways to ensure that the mobile app revenues of the company would reach greater heights to compete with Apple. In addition, the carrier billing approach of Android OS adopted by Google for the purchases of apps proves efficient to give the company a beneficial edge over the iOS of Apple.

Growth in mobile devices business

In addition to the increase in revenues from search advertising and Android OS, Google is also growing in the mobile devices business which is further expected to accelerate through the purchase of Motorola Mobility last year. Further, the success of Android OS should also be able to present the company with an opportunity to effectively develop smart phones, tablets and other related devices which would optimize Google’s performance in this platform.

On the other hand, investors should also keep in mind that the competition in all operating businesses of Google are getting stronger every day and the company will have to continue with its innovation on new products and services to keep up with this pace of growth.

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