GOOGLE'S ANDROID AND SOCIAL NETWORKING: 'PLUSES' AND MINUSES

Google Plus, the social network platform designed to compete with Facebook, has around 90 million users, the Web giant said Thursday.

That's more than twice as much as Google Plus boasted three months ago when it had about 40 million users, The Associated Press reported.

Google still has a long way to catch up to Mark Zuckerberg's Facebook, whose user base climbed to an astonishing 800 million last fall. And not everyone is convinced that Plus will emerge as a significant threat to Facebook.

“The engagement levels on Google Plus are pathetic compared to the larger platforms on social media,"The New York Times quoted Stifel Nicolaus analyst Jordan Rohan as declaring. “The company will argue with different statistics, but most would discount what they say as an overly optimistic view."

Google's quarterly earnings Thursday failed to meet analysts' expectations despite what the Times reported reflected record-breaking revenues of $10.58 billion at the 13-year-old company. One of the concerns was that the search-engine king obtained less money per click on its online advertisements, and increased operating expenses also may have played a factor in Google's declining stock price following its earnings announcement. 

The mobile Android software for smartphones and tablet computers is one of the platforms driving growth at Google, which Fortune has rated the No. 1 company for which to work. CEO Larry Page, the AP reported, said Android is running on 250 million smartphones and other devices. Android, however, may be one of the reasons Google's operating expenses are rising.

"You've got to ask yourself, 'Where is the money going? What are they spending it on?' I have a feeling it is on platforms like Chrome and Android, and things like that," Reuters quoted Fort Pitt Capital analyst Kim Forrest as stating.

Mountain View, Calif.-based Google is poised to significantly enhance its stake in the wireless market though its pending $12.5 billion acquisition of Motorola Mobility, the handset maker. Some analysts, however, are concerned about the deal's impact on Google's financials and whether the acquisition will alienate some handset manufacturers that compete with Motorola Mobility and helped Google get on the map with Android.  

“Motorola really is going to be a tough one to swallow. It’s going to wreck their income statement," the Times quoted BGC Partners analyst Colin Gillis as asserting.

Source : http://www.vision2mobile.com/news/2012/01/google-plus-android-growing.aspx