Google Takes On Microsoft As Android Enters PC Market
Google’s Android operating system for mobile phones will soon begin running on computers, entering a market long dominated by Microsoft Corp. and accelerating the growing rivalry between the two tech giants.
Taipei-based Acer Inc., the No. 2 laptop-maker, announced today that it would release a low-cost notebook with Android during the third quarter of this year. Meanwhile, Asustek Computer Inc., which pioneered the sub $500 netbook, has also developed a model that runs on Android, according to Chairman Jonney Shih.
Android’s use in netbooks is a sign the software is powerful enough to replace Microsoft’s Windows, which currently runs about 90 percent of personal computers worldwide.
Google’s push into the operating system market dials up the pressure on Microsoft as it prepares to launch its Windows 7 operating system, said Daiwa Securities Group analyst Calvin Huang, who covers the computer industry from Taipei.
“This is a negative and may force Microsoft to lower the price of Windows 7,” Huang said during an interview with Bloomberg.
“More and more vendors are adopting Android and non-Windows in their products, so this is a very good chance for Android to penetrate the PC market.”
Acer’s Aspire One netbook, which will run Android, will cost less than the Windows XP model. However, the two products will have the same electronic components, such as Intel’s Atom processor, said Jim Wong, head of Acer’s information-technology products.
“Competition in the marketplace is good and people have the right to choose software that is best for them,” said Amelia Agrawal, a Singapore-based Microsoft spokeswoman, in a statement to Bloomberg.
“Microsoft remains confident that people will keep buying Windows, as evidenced by the robust Windows growth on small notebook PCs.”
Android made its debut in 2007 as a Linux-based software system for mobile phones. Linux is a free, open-source operating system developed by hundreds of engineers the world over.
In February, Asustek said its engineers were developing an Android-based netbook this year.
“Anyone can take the Android platform and add code or download it to create a mobile device without restrictions,” said Mountain View, California-based Google in an statement e-mailed to Bloomberg.
“We look forward to seeing what contributions are made and how an open platform spurs innovation.”
For its part, Redmond, Washington-based Microsoft has also moved to challenge Google’s primary business, having unveiled its Bing Internet search engine just last week.
Asustek launched its Eee PC netbook in October 2007, which originally ran on Linux software. Meanwhile, Microsoft entered the market, winning 85 percent of mini-notebook sales by the fourth quarter of 2008, according to data from Gartner Inc.
Linux accounted for the remainder.
“Google really does have the brand name and the financial resources to be able to be a rival to Microsoft,” said Warren East, CEO of chip designer ARM Holdings Plc, in an interview with Bloomberg.
“The whole Linux community is a bit fragmented when you compare it with Microsoft.”
Cambridge, England-based ARM stands to gain from Android’s success since Microsoft’s Windows Vista, XP and Windows 7 don’t run on ARM-based computers.
“Microsoft going forward may have to work on an ARM-based solution,” said Huang.
“If Microsoft doesn’t want to see Google Android get into the PC market, they will have to support ARM; otherwise, ARM will go perfectly with Android.”
Freescale Semiconductor Inc. and Qualcomm, which produce chips based on ARM’s technology, have said they plan to launch products this year for netbooks that run Android.
Google’s market position should help get the computers into retailers such as Best Buy Inc. and others, said Freescale’s chief sales and marketing officer Henri Richard.
“It’s important to be able to convince Fnac or Best Buy to put a product on their shelf, and that’s where I think Android is going to be more helpful,” Richard said in an interview with Bloomberg.
Shares of Google’s stock closed at $428.40 on Tuesday, up $1.84, while shares of Microsoft were unchanged, closing at $21.40.
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