Enter Android in the smartphone operating system titans

In the clash of the smartphone operating system titans, we take a look at what Google has brought to the table.

BRINGING IT: A Google Android figurine sits on a welcome desk at the new Google office in Toronto. - Reuters

 

FANCY having a Donut, Eclair, Froyo, Gingerbread, Honeycomb, Ice Cream Sandwich, or Jellybean?

While the list above seems like a mouth-watering spread of sinful desserts, it can refer to something else in the technological world today.

For the uninitiated, those are also the names of the different update versions of the Android smartphone operating system (OS).

Before we touch on the topic of Android, let's first start with smartphones and how they have become an integral part of our lives in this day and age.

It wasn't too long ago when the sheer mention of the word 'smartphone' brought to mind an image of a busy businessman holding a personal digital assistant (PDA) phone to check and send work e-mail messages on the fly.

Aside from businessmen and those with deep pockets, it was uncommon to see an average consumer owning a smartphone. Among my peers during my time as a student, anyone who owned a smartphone was deemed to be a rich spoilt brat.

Fast forward to today, the advancements of technology has made it so much easier to own a smartphone.

What is a smartphone? By Oxford dictionary's definition, a smartphone is a mobile phone that is able to perform many of the functions of a computer, typically having a relatively large screen and an operating system capable of running general-purpose applications.

The early smartphones came into existence in the 1990s, although the early incarnations of smartphones were basically mobile phones incorporating PDA (personal digital assistant) features, and not necessarily with large screens.

Throughout the years, there have been various operating systems supporting the vast multitude of smartphones that have reached the hands of consumers. Among the operating systems that we have come to know and love are Symbian, Palm OS, Windows Phone, BlackBerry, Android and iOS.

As the title suggests, this column will be all about Google's Android operating system.

Meteoric rise

The first ever smartphone sold running on the Android operating system was the HTC Dream, which was released in 2008.

Since then, Android has come a long way, climbing up the ranks and capturing the biggest share of the pie in the smartphone operating system market. Aside from smartphones, the operating system is also widely used on tablet computers.

With a whole plethora of Android devices being unleashed into the market, the operating system from Google overtook long-time leaders Symbian at the end of 2010 to be the world's most widely used smartphone operating system, according to online sources.

It is growing at an estimated 1.5 million activations per day. This means that everyday, 1.5 million Android devices are powered on by consumers for the first time. Android leads the smartphone OS world, with a market share of 75% during the third quarter of 2012.

Being a product of Google, Android smartphones come readily available with a staple of Google applications (apps), such as Gmail, Google Maps, Google Calendar, Google+ and Google Chrome browser.

Interestingly, every update version of the operating system is named after a form of dessert, and in alphabetical order. The first system version was named Donut (1.6), followed by Eclair (2.0 - 2.1), Froyo (2.2), Gingerbread (2.3), Honeycomb (3.1 - 3.2), Ice Cream Sandwich (4.0), and Jellybean (4.1 - 4.2).

Unlike the other main operating systems in the smartphone market, Google has made its Linux-based OS open source. This means that the software can be freely distributed and modified by device manufacturers, wireless carriers and developers.

This move has successfully attracted a large community of app developers, as can be proven by the whopping 800,000 apps available for download on the Google Play store as of January.

In October 2012, the Google Play store celebrated a milestone of 25 billion app downloads.

Tailor made

Android has become a favourite choice for manufacturers as it is easy to adopt and implement, rather than having to develop a whole new operating system from scratch. We can find this operating system from Google being adopted by a diverse range of manufacturers, ranging from big brand names such as Samsung, HTC, Motorola, Sony Ericsson and LG to smaller, upstart Chinese companies.

However, not every Android smartphone provides the same experience. Different hardware manufacturers have different "skins" or add-ons, above the base Android software, to differentiate themselves from the rest of the pack. Samsung's Touchwiz user interface and HTC's Sense user interface are examples of the types of "flavoured" Android offerings by other manufacturers.

Google also collaborates with different hardware manufacturers to release their flagship Android smartphones under the Google Nexus line. The Nexus phones provide the original "vanilla" Android experience for users and are the first to receive the latest Android version updates.

Because of this diversity, we can find Android smartphones for every segment of the market. Aside from the pricier high-end smartphones, there is also a wide selection of mid- to low-end Android smartphones which are more affordable, hence making it easier for more consumers to own a smartphone.

Android has been so popular that we are seeing it in more and more electronic products and not just smartphones or tablets. There are even manufacturers who are starting to incorporate Android into their microwave ovens!

Among the advantages of the Android operating system are its ability to multitask, the huge amount of options for devices, the notification bar, homescreen widgets, and the connectivity to the Google brand. The advantages and disadvantages of the operating system will be delved into in future editions of this weekly column which will appear on TechCentral.my.

This weekly column will be a medium to share about everything Android. Expect to read about news on the operating system updates, app reviews or the new devices running on Google's operating system. Stay tuned!

(Donovan is a full-time auditor and big-time gadget lover who discovered the wonders of the Android world after a chance encounter with Samsung's Galaxy S back in October 2010.)
Related post:
Chinese smartphone innovators shrug off Android dominance.

Making monkeys out of markets

IT'S now official. Even monkeys can beat the stock market index. Cass Business School researchers in London simulated 10 million portfolios of US stocks selected at random. They found that a US$100 invested at the beginning of 1968 would have yielded US$5,000 by the end of 2011, but half the monkey (computer-simulated) portfolios managed US$8,700, one quarter made more than US$9,100 and 10% made more than US$9,500.

So, does the market beat all the professionals if monkeys beat the market?

There is a real lesson here for investors. I had a great debate with a good friend last month regarding the benefits of investing in a world where fast trading algorithms (using super fast computers to detect market opportunities to buy, sell or short stocks make it hard even for traditional asset managers to compete. So what chance is there for retail investors? My friend decided to get out of trading stocks.

Investing has been such complicated business because there are just too many variables to handle. Gone are the days when you think you can understand how markets perform. The rules of the game changed when policymakers began intervening through unconventional monetary policy and politics become part of the equation.

You would have thought logically that growth economies should produce growth stocks. The BRICS economies (Brazil, Russia, India, China and South Africa) met in Durban at the end of March. These five countries accounted for over half of total global growth since 2001, but their stock markets have not done that well. Since its peak in 2007, the BRICS index is down 37%.

Chinese retail investors have declined in number, based on the number of accounts closed. The A share index is down 31% since its peak in 2009, and the Brazil, Russia, India and South Africa stock market indices are all in negative territory since the beginning of this year. On the other hand, both the US and Japan are sluggish in growth and their stock markets performed 11.1% and 20% respectively since the beginning of this year.

Despite being overall in crisis and negative growth, even the European stock market performed in positive territory, mainly due to better performance in Germany and France. There are globally diversified companies in these economies that can outperform despite the slowdown in the European economy.

The real problem is that negative real interest rates around the world are truly destroying the ability of investors to judge what is the right asset to invest in. Markets are clearly bubbly when emerging market investors start investing in taxi licenses.

Accordingly to a Bloomberg report, Turkish taxi licenses today trade for US$580,000 each. My Hong Kong taxi driver was complaining to me that a Hong Kong taxi license was trading over HK$7mil (just under US$900,000) and yielding next to nothing.

It made no sense to him as a taxi driver himself to be an owner. This reminded me that in 1996, golf club membership was being touted as the best investment ever, with the 1997 Asian financial crisis wiping out all gains thereafter.

So what should an honest, no-inside information retail investor do? I guess the old-fashioned advice to invest in diversified and value stocks and maintaining ample liquidity is still sound. Global bonds have done well since the financial crisis due to the massive quantitative easing.

Even those who have speculated on Greek bonds when they were yielding more than 20% have done well. But it is difficult to argue that ten year US Treasuries and German Bunds at under 2% per annum represent no risk. Certainly, Japanese 10 year bonds at 0.55% per annum, when the official inflation target is 2% per annum, must carry considerable interest rate risks.

Over the long-term, there is no question that investing in one's own home has been good investment. This is officially supported leveraged investment, since most mortgages still require not more than 30% down payment for the first home. The fact that there is a growing middle-class in most emerging Asia means that demand for housing is still on the increase, but given such low interest rates, it is hard to imagine how much further can house prices rise relative to the affordability index.

My own inclination is to go for high yield, solid growth companies that are globally diversified. You basically invested in the region that you are most familiar with, and in companies that demonstrate good governance and know what they are doing. The average price/earnings ratio of Hong Kong, Singapore, Malaysia and Thailand markets are still below those of the US (17.7). China A share has a PE ratio of only 8.1 and a yield of 3.7%.

Of course, the art of investing depends completely on the investor's risk appetite, age and liquidity requirements. If you are fully invested in illiquid assets or in illiquid markets, you cannot get out even though the returns look good. Property markets are notoriously easy to get into and difficult to cash out, especially in the smaller markets. Bond investments may look good on paper, but when you want to exit, the selling price may be lower than what you think you can get, especially for retail investors.

Knowing that even monkeys can beat the market gives one food for thought. You can do better, but you must invest the time and energy to think through what you are investing in, what risk you are taking and what you want to achieve. My friend in Australia had no formal training in investments, decided that she could outperform the market, relied on her instinct and own research into companies and is now doing pretty well on her own.

Even monkeys know how to survive, so don't look down on monkeys.

THINK ASIAN By TAN SRI ANDREW SHENG

■ Tan Sri Andrew Sheng is president of the Fung Global Institute. He was recently named by Time magazine as one of 100 most influential people in the world.

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Should Malaysians vote for the racist ?

Zulkifli Nordin - PERKASA

condemns Chinese and Indians as "pendatang haram". Where are his roots ? Java, Sumatra, Sulawesi or from heaven ? Dare he traces his roots ! After all he is also a "pendatang haram ?





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