Alphabet Stock Drops 2.86% as AOSP Maintenance Halted

On April 3, 2025, Alphabet's stock experienced a 2.86% drop in pre-market trading.

Alphabet's recent decision to halt the maintenance of the Android Open Source Project (AOSP) has sent shockwaves through the tech industry. This move, announced just six days after Huawei's PuraX launch, signals a significant shift in Google's strategy. The decision means that all future Android development will be conducted internally, leaving external developers and manufacturers in a state of uncertainty. This change could lead to stagnation in updates for devices that rely on AOSP, posing a significant challenge for manufacturers like Xiaomi, OPPO, Vivo, and Honor, who have long depended on the open-source platform for their customizations.

Huawei's HarmonyOS, which has evolved to be independent of AOSP, stands to benefit from this shift. HarmonyOS 5.0 has completely removed its reliance on open-source code, marking Huawei's commitment to self-sufficiency in its operating system. This independence has been crucial for Huawei, especially after being cut off from Google Mobile Services (GMS) in 2019. The company has since focused on building a robust HarmonyOS ecosystem, which now boasts over 20,000 native applications and plans to launch a HarmonyOS-powered computer in 2025, further solidifying its position in the market.

Google's decision to close AOSP is seen as a strategic move to maximize the remaining value of Android in a market where smartphone growth has stagnated. The open-source nature of Android, which once provided a competitive edge for manufacturers, is now being tightened by Google. This shift suggests that future updates and features may come at a cost, as Google aims to monetize its platform more aggressively. Manufacturers will need to adapt to this new reality, either by paying for updates or risking falling behind in the competitive smartphone market.