Google’s (NASDAQ:GOOG) shares are close to all time highs with the stock crossing 640 at the end of 2011. [1] Despite its legal tangles with Apple (NASDAQ:AAPL) and the likes, the Android operating system has provided a tremendous upside to Google this year with its global market share crossing the 50% mark comfortably. However, with more patent injunctions and the product launches of the new iPad and iPhone in store, 2012 promises to be an interesting and challenging year for Android.
See our full analysis for Google’s stock
Apple Would Continue to be the Biggest Threat
After a resounding success with the iPhone 4S, Apple’s threat will continue to loom large, especially with users eagerly waiting for the iPad 3 and a possible iPhone 5 launch this year.
While Google is planning its own Nexus tablet this year, the iPad 3 rumors are already circulating. Expectations of an enhanced display and more storage have already flooded the press, and the latest reports point to a possible facial recognition feature for the iOS. [2] If announced, Apple’s pre-order sales would likely hit the roof again stymieing Android’s growth.
In addition to the product hype, Apple has also seen significant victories in patent injunctions this year with the latest one being a ban on some HTC smartphones in the U.S. [3] Android’s OEM partners would of course find a quick-fix solution to circumvent these patents but court rulings so far indicate that Apple has the upper hand, which should boost the latter’s confidence in continuing its patent wars.
We currently have a price estimate near $628 for Google’s stock, which is in line with the market price.
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