Alphabet Inc (NASDAQ:GOOG)’s Google Mourns Slow Android Marshmallow Uptake

Things are apparently not adding app for Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL)’s Google on the mobile operating system front. Why is it that newer Android flavors aren’t exciting users yet Apple Inc. (NASDAQ:AAPL)’s latest iOS version is doing remarkable well? It turns out that the adoption of Android 6.0 Marshmallow stands at a miserable 0.7% since release according to the latest Android update.

In the week that ended January 4, 2016, the penetration of Android Marshmallow was still less than 1% nearly two months after release. Alphabet Inc (NASDAQ:GOOG)’s Google reported that in the week under review, only 0.7% of Android owners had upgraded to Marshmallow.

Where is the charm of Project Fi?

The slow uptake of Android Marshmallow also tells story about the progress of Google’s own Nexus 5X and Nexus 6P smartphones. The two Nexus devices shipped with Android Marshmallow. They were released to market in October 2015. Given the low adoption level of Marshmallow, there seems to be comparatively low demand for the Nexus 5X and Nexus 6P handsets.

That should be disappointing because it is through Nexus devices that Google offers its low-cost wireless service called Project Fi, which rivals cellular services rendered by carriers such as AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ). It should have been that Project Fi would excite many people to go for Nexus 5X and Nexus 6P, thus accelerating the adoption of Android Marshmallow in the same breath. That doesn’t seem to be happening and it further complicates the picture for Alphabet in the mobile business.

Many Android users stuck with old software

Android 6.0 Marshmallow is an upgrade over Android Lollipop, whose uptake also remains low. If you combine Android Marshmallow and Android Lollipop users, you find that just about 22% of the Android install base has upgraded to the upgraded versions of the software. A large number of Android users are still stuck with the older version of the software that has not been updated for close to four years.

iOS 9 uptake

Apple seems to be doing incredible well in shifting its users to the latest version of iOS. The iOS 9, for instance, already boasts more than 70% of the iOS install base. The iOS 8 has about 22% of the iOS install base. Together iOS 9 and iOS 8 account for more than 90% of iOS base, which is a far cry from Alphabet Inc (NASDAQ:GOOG)’s mere 22% of Marshmallow and Lollipop combined.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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