Bitspin announced over the weekend that the company is acquired by Google Inc (NASDAQ:GOOG). The announcement on Bitspin’s website assured users of Timely, its widely popular app that the app will continue to function as usual.
This takeover by Google did not surprise many industry analysts. This is because Google has been acquiring companies that are of strategic value to its Android operating system for the last couple of years. Bitspin is just the latest acquisition.
Interestingly, Timely is the only app that Bitspin has produced. This means that Google’s acquisition of Bitspin was not for its present value. Rather, it is possible that Google took note of Timely’s adjustable themes and re-sizable widgets. These features have great potential for Android if developed further. In this case, the team of application developers at Bitspin will design new user interfaces for various apps running on Androids. This team may also play a part in redesigning Android’s core interface.
The Strategy behind the Acquisition
As you can now tell, Google’s acquisition of Bitspin is a strategic move aimed at increasing the functionality of its Android operating system. The importance of this system to Google cannot be overemphasized. Android is critical to maintaining and expanding Google’s influence over the internet. It is also a critical to increasing Google’s revenue from mobile advertisements. In other words, a friendlier user interface developed by Bitspin would will appeal to its already wide market base and therefore, fend off any competition.
It is important to note that Google controls roughly seventy five percent of the Smartphone market. In fact, new devices running on Android activated each day are number more than five hundred and fifty thousand. This figure is only set to rise in the coming years. For example, shipments of devices using the Android operating system in 2014 will be more than one billion according to a research conducted by the Gartner Research Group. In contrast, the same research shows that shipments for mobile devices will only witness a moderate increase of five percent. This is five times less than the increase Android mobile devices will be witnessing.
Competition in the Mobile OS Market
The success of Google’s Android’ mobile operating system is of major concern to Google’s competitors in the mobile and internet market. The most notable competitor is the Microsoft Corporation. Microsoft has been in talks with various mobile manufacturers such as Sony that could see these manufacturers churn out mobile devices running on Windows Phone rather than Android. In addition, a group of companies comprising of Vodafone, Huawei, Fujitsu, Intel, Samsung and LG among other companies are now promising to produce a new mobile operating system known as Tizen. Canonical, based in the UK is also seeking to release a Smartphone whose basis is the Ubuntu platform.
The Importance of Emerging Markets to the Success of Android Devices
These are all pointers to intense competition for Google’s Android OS. This is why Google acquires Bitspin. It provides Google with a platform to advance its Android technology, improve the functionality of the Android mobile OS for it consumers and in so doing, beat off the rising competition. Google acquires Bitspin in the hope that Bitspin will help it to get a huge chunk of growing market in emerging economies. This is because emerging markets are the key to growth for Android. These markets will represent more than seventy-five percent of the total uptakes in mobile devices running on Android technology in 2014 all the way through to 2017. Google acquires Bitspin may just help Google to win over these emerging markets.