Google Chrome toasts birthday with a crown

SAN FRANCISCO -- Microsoft just can't seem to get anything right lately.

Case in point: Google's Chrome browser usage has taken off, running away with the crown for king from Microsoft's Internet explorer in the past year. Google's desktop-based version of Chrome has gradually gobbled away at the browser market, yesterday marking its fifth birthday.

But now a standard browser powering many devices relying on Android, used in 79% of the world's smartphones, Chrome has pulled way ahead. Only last year, Microsoft and Google browsers were neck and neck: Google's Chrome held 33.8% of the market compared with 32% for Microsoft's Internet Explorer in July of last year. In the year since, Chrome has rocketed to 43.1% of the market compared with Internet Explorer's 24.5% position, according to StatCounter.

The reversal of fortune in the once-widely watched browser wars underscores Microsoft's failed track record to jump-start its Internet businesses.

Part of the change in browser status is driven by a world of new mobile devices and part is driven by consumer choices, says Forrester analyst J.P. Gownder. "Certainly on the consumer side you can see why people are attracted to Chrome. It's got lots of services, but it can also be used on multiple devices."

Microsoft has lost billions of dollars trying to gain a leadership position in Internet services as the prospects for Windows fade in a post-PC, mobile era. The software giant posted a $1.3 billion loss in operating income in its Online Services unit for its fiscal year ended June 30. That comes a year after it took a massive $6.2 billion write-down for its purchase of Internet advertising company aQuantive, a deal that failed to boost growth.

Google has posted massive profits around search advertising and seen its browser continue to soar in the mobile era while Microsoft has hit reboot on its mobile strategy with a $7.2 billion acquisition of Nokia.

Google's Chrome boasts more than 750 million active users. A massive catalyst for its growth has been the more than 1 billion
activations of Android devices worldwide, a milestone also passed this week.

"All this Android innovation is driving tremendous ecosystem momentum and I'm excited to share that together we've now passed 1 Billion Android device activations," wrote Sundar Pichai, senior vice president of Android, Chrome and Google Apps, on Google+.

Most consumers have been drawn to the Chrome Internet browser for its speed and simplicity, much like Google's search.

"The thing that I'm proud of is the team has continuously made Chrome faster," says Linus Upson, vice president of engineering for Chrome, "Competition is good for users, but it's not always good for competitors."

Microsoft points to data from Net Applications on its Internet Explorer leading in market share, says spokesman Blair Cook. However, Net Applications partners and clients include Microsoft.

Meanwhile, all other tracking sites point to Chrome as the runaway leader.