July 2005, California.
Google quietly acquired a small company for $50 million.
This company was Android Inc., with only a dozen employees. They were developing a mobile operating system.
Founder Andy Rubin had been an Apple engineer, later founded Danger company (developed T-Mobile Sidekick phone). He believed: The future of smartphones is open.
Google saw the mobile internet opportunity. They didn’t want to just do search; they wanted a presence on phones.
Acquiring Android was Google’s first step into mobile.
The Birth of Android#
After joining Google, the Android team continued developing the operating system.
Their goal was: An open, free, customizable mobile operating system.
Unlike iOS, Android:
- Open source: Source code public, manufacturers can modify
- Free: Manufacturers don’t pay licensing fees
- Customizable: Manufacturers can add their own interfaces and apps
- Multi-hardware support: Supports phones of all configurations
This let Android run on all kinds of phones—from entry-level at a few hundred yuan to flagship at several thousand.
The First Android Phone#
In October 2008, HTC Dream (also called T-Mobile G1) was released—the first Android phone.
It had a 3.2-inch touch screen but also a slide-out physical keyboard. This reflected the conservatism of the time—many still didn’t trust virtual keyboards.
G1 ran Android 1.0 with limited features:
- Notification bar, home screen widgets
- Android Market (later renamed Google Play)
- Gmail, Google Maps, YouTube integration
G1 sales were modest, but it proved Android could work.
Android’s Evolution#
Android evolved quickly, releasing a new version each year:
Android 1.5 Cupcake (2009): Virtual keyboard, video recording
Android 2.0 Eclair (2009): Multiple account support, Google Maps navigation
Android 2.2 Froyo (2010): Mobile hotspot, speed improvements
Android 2.3 Gingerbread (2010): NFC support, improved gaming support
Android 4.0 Ice Cream Sandwich (2011): Completely new interface design, unified phone and tablet
Android 4.1 Jelly Bean (2012): Google Now voice assistant
Android 5.0 Lollipop (2014): Material Design design language
Each version brought new features; Android grew more powerful.
The Manufacturer Carnival#
Android was open source and free; any manufacturer could use it. This led to an explosion of Android phones:
Samsung: World’s largest Android phone manufacturer; Galaxy series is the flagship representative.
Xiaomi: Value-for-money strategy, successful in China and India.
Huawei: Was China’s largest phone manufacturer, later turned to HarmonyOS due to sanctions.
OPPO, vivo: Strong offline channels, selfie and fast charging are selling points.
OnePlus, Realme, Honor: Emerging brands, each with its positioning.
Android phones cover all price points: from entry-level at a few hundred yuan to foldable flagships over ten thousand. Smartphones went from luxury to mass consumer product.
Android’s Market Share#
Android quickly captured the market.
In 2010, Android market share was about 23%.
In 2012, Android surpassed iOS to become market leader.
By 2024, Android held about 71% of global market share, iOS about 28%.
But the landscape varies by region:
- US: iOS about 57%, Android about 42%
- Europe: iOS about 32%, Android about 67%
- China: Android about 75% (iOS share dropped after Huawei sanctions)
- India: Android about 95%
Android has absolute advantage in developing countries because of low prices.
Android’s Challenges#
Android also faces challenges:
Fragmentation: Android has thousands of devices with different screen sizes and hardware configurations. Developers need to adapt to various devices; testing costs are high.
Version fragmentation: Many devices run old Android versions, unable to get new features and security updates. Google Play Services partially solved this problem.
Security: Android allows installing third-party apps; malware spreads more easily.
Google control: Although Android is open source, Google services (GMS) are closed source. Without GMS, Android experience is greatly diminished. Huawei’s overseas market plummeted after being banned from using GMS.
Andy Rubin’s Departure#
In 2013, Andy Rubin left the Android team for other projects.
Later, he was accused of sexual harassment and left Google. Android was taken over by Sundar Pichai.
Rubin founded Essential company and released an Android phone, but it failed. The company closed in 2018.
Android’s founder couldn’t continue his legend.
Android’s Significance#
What is Android’s significance?
Made smartphones ubiquitous: Android made smartphones go from luxury to mass consumer product. Today, over 3 billion people use Android phones worldwide.
Power of open source: Android proved open source can succeed. An open-source system can compete with closed-source iOS.
Power of ecosystem: The Android ecosystem has millions of apps covering every need.
Right to choose: Users can choose Android phones from different brands and price points, not locked into one company.
Next Step: The Big Data Era#
Mobile internet brought billions of people online, generating massive data.
This data is called “the new oil.” Whoever controls data controls the future.
Tomorrow, we’ll discuss the big data era.
Today’s Key Concepts#
Android: Mobile operating system developed by Google, based on Linux kernel. Android is open source and free; any manufacturer can use and modify it. Android holds about 71% of global smartphone market share.
Open Source Operating System: Operating system with publicly available source code that anyone can view, modify, and distribute. Android is an open-source operating system; iOS is closed-source. Open source lowers manufacturer costs but also brings fragmentation issues.
Fragmentation: Android has thousands of devices with various configurations. Developers need to adapt to different screen sizes, hardware configurations, and system versions, increasing development costs.
Discussion Questions#
- Android is open source and free, making smartphones accessible to everyone. Do you think the open-source model is good for consumers?
- Android holds 71% market share, but iOS holds most of the high-end market’s profits. Why do you think that is?
Tomorrow’s Preview: The Big Data Era—data is the new oil, how to mine data’s value?