“Google is building Android not so they can make great mobile devices and sell them to consumers,” Kyle Baxter writes for TightWind. “Rather, they are making them for these two simple reasons: (1) to disrupt Apple’s growing dominance of mobile devices, both so Google doesn’t have to rely on Apple for access to their users and to eliminate their paid-for application model; and (2) so Google can control the mobile industry and thus secure advertising from it.”
“This helps explain some puzzling moves by Google. For example, Android’s market may not be terrible in comparison to Apple’s App Store for paid applications just because Google hasn’t yet finished it; rather, discouraging paid applications on the Android platform is in Google’s interest,” Baxter writes. “If users won’t pay for applications, what will developers use to make money from their applications? Advertising. And Google conveniently owns one of the largest mobile advertising providers, Admob.”
“Moreover, why would Google be so willing to empower network providers by giving them so much control over Android?” Baxter asks. “Because it means wider adoption of Android, and as more Android-based devices flood the market, the hardware manufacturers themselves are increasingly irrelevant. As Android spreads, and the differences between different devices decrease as a result, there will be less competitive differentiation between manufacturers—consumers will, like they do in the PC market, shop based more on price than on who makes the device. At that point, hardware will be commoditized, and building a mobile device business based on a different OS than Android will be incredibly difficult. Profit potential will shift from selling actual devices (where margins will be small) to providing services for those devices—quite convenient for Google, who’s in the business of making web services and providing advertising.”
Baxter writes, “Android isn’t an attempt to build the best mobile platform and sell it on its merits; it’s a play to control the vast majority of the mobile market, secure eyeballs for Google advertising and eliminate any threat to Google.”
Full article – highly recommended – here.
MacDailyNews Take: Moles like to burrow everywhere; insidious creatures.
[Attribution: Daring Fireball. Thanks to MacDailyNews Reader "Dave G." for the heads up.]