Google brings more Android app development in-house in attempt to counter Apple

“Google Inc. plans to hire dozens of software developers to create applications for smartphones and other mobile devices, people familiar with the matter said, a new strategy aimed partly at helping Google counter Apple Inc. in one of high tech’s hottest sectors,” Amir Efrati reports for The Wall Street Journal.

“The Internet company has begun recruiting software engineers, product managers, user-interface experts and others who have ideas for mobile apps, the people said,” Efrati reports. “Some current Google employees have changed jobs to work on the effort, they added.”

Efrati reports, “The Google software is still playing catch-up when it comes to apps. Android users can access an online market with more than 100,000 applications available for download, but Apple’s app store has more than 350,000 apps… Apps developed by Google’s new lab are expected to be free and might have ads that would generate revenue, the people familiar with the matter said.”

Read more in the full article here.

MacDailyNews Take: Independent developers want users who have proven they will pay for quality software. Those would be iOS users. Android settlers, on the other hand, are notorious cheapskates. Throw in fragmentation, the loss of a captive Verizon audience and a far less vibrant third-party accessory ecosystem and it’s plain that things are only going to get worse for Google.

[Thanks to MacDailyNews Readers “Tom W.” and “Janine H.” for the heads up.]

30 Comments

  1. Well, paying people to write apps for your platform is fine, but, given the amazing quality of Google software (and hardware), I’m not so sure it’s a good idea for them. And, of course, everybody loves to have ads honking at them from every nook and cranny!

  2. Android is becoming more of a money-losing proposition for Google. Google can make just as much (or probably MORE) ad-based revenue from iOS. While pushing Android, Google can’t afford to disregard iPhone, iPad, and iPod touch. Any Android app that is developed “in house” will have an iOS equivalent.

    It’s very clear to me that Apple WANTS Android to eventually become the only “other” viable smartphone platform. Apple can’t (and does not want to) make 100% of smartphones. It might as well be the predictable fragmented “commodity” Android platform, with the actual products coming from a collective of many smaller competitors, and Google making no direct profit from a device sale. In such as scenario, Apple and its iOS “ecosystem” make most of the available profit (as they are already).

  3. @ ken1w:

    You’re right. But the reason behind Android in the first place was for Google to have their own platform to compete with Microsoft, who was also an advertising competitor with Google.

    The thinking was, if Microsoft were to take over the mobile market like they did the desktop market, then they could push Bing! and their own advertising over Google’s.

    Problem was, something no one could predict, the iPhone turned the mobile industry upside down and left everyone scrambling. Microsoft, unable to adapt, fell to wayside and Google changed course towards a more iPhone-like touch based UI.

    Of course, this eventually lead Apple into getting its own advertising outlet to compete with Android.

  4. @ken1w

    “It’s very clear to me that Apple WANTS Android to eventually become the only “other” viable smartphone platform.”

    I am not necessarily disagreeing with you- but on what do you base the clarity of your perception?

  5. @ Macrelated

    Because RIM and Nokia control their platforms, hardware and software. They’re potentially dangerous because it’s possible for them to do something that is actually innovative, and do it relatively quickly and without warning.

    Android is predictable and slow-moving. The Android hardware makers, Apple’s actual competitors, have no control over the OS, and the primary software developer (Google) has no direct control over hardware. The platform, both hardware and software, copies Apple AFTER Apple does something new, so Apple will always be ahead. And it’s unlikely that the Android platform can keep a “secret” and catch Apple by surprise.

    Competing against the Android platform will be like competing against Windows (for the Mac business), except Apple’s competitors (the companies that make the hardware) have no real pricing advantage and Google has no cash cow (license fees from Windows and Office). Google’s motive is ad-based revenue, and as I said previously, they can make just as much (or more) by supporting the iOS platform.

    So if you are Apple, do you want a crowded market with Android, RIM, Nokia, Windows Mobile / Windows Phone, and HP/Palm? Or do you want it to be simplified down to iOS and Android? Some may say it’s better for Apple if the market was fragmented between many platforms, but Android is already fragmented by itself.

  6. I’m not sure hiring more highly-paid software engineers to help promulgate a free operating system is a winning strategy.

    I’m not saying Google is wrong, just want to see the business plan so I can better understand management’s thinking.

  7. Apple’s motivation: make products that people will love to use.

    Google’s motivation: act like a jaded company, copy Apple, counter whatever they do, make money, employ moles on everything.

    They were cool when they were just a search engine.

  8. The real question here is whether the lack of many good apps will slow Android sales, because so far it hasn’t. I’ve got over 120 apps for my iPhone 4, and over 130 for my iPad, the average is 108. But despite this, almost twice as many Android phones were sold this year as iPhones. That’s sad.

  9. Well with this move, Google have removed any incentive for independent quality app dev on Android. Why bother competing with free, Google will just release their version and put you out of business.
    Incredibly dumb.
    Funny tho’. Apple used to get accused of the same thing.

  10. @ melgross

    “Android” is not a product. The actual Android devices are the products. No single Android device is close to being as popular or successful as iPhone (or iPad), and no Android device maker is close to being as profitable as Apple. That’s the bottom line.

    I don’t recall any statistic that says there are “twice” as many Android phones being sold, especially if you look at the worldwide picture. And any current statistic does not include the impact of the Verizon iPhone.

  11. Did anyone see the interview of Eric T. Mole by Maria B”Bottlehead” on CNBS. I missed it, but the teaser was “Is Eric Schmidt considering a position at Apple” or to that effect. I sure hope not. Who would hire a deceitful low life. Easiest way to trash the stock. Maybe MSFT would hire him to replace Balmer.

  12. Google in Desperation Mode:

    X: ‘Our app store sucks! QUICK a strategy!!!’

    Y: ‘Let’s DIY apps and give them away for free!!!’

    X: ‘RadiKewl! That’ll save our app store!’

    ACTUAL RESULT: Independent app developers get screwed by free Google alternatives. They dump the Google app store in droves and tell Google to go screw themselves. The Google app store goes into TOTAL FAIL MODE.

    Shoot yourselves in the foot much? Brilliant Google. Just brilliant.

  13. @ken1w

    Your analysis is interesting.

    “So if you are Apple, do you want a crowded market with Android, RIM, Nokia, Windows Mobile / Windows Phone, and HP/Palm?”

    I would look a it a little differently.

    Rim is viewed as a once dominant player in business, but now past it’s prime. Nokia seems irrelevant. Microsoft out of touch with reality. HP/Palm missed it’s opportunity.

    The only platform that, in the public’s mind, seems to be competing with Apple, is Android.

    My thinking is that from Apple’s point of view to have a crowded field of wanna-bees may be better than having one competitor that the public sees as “the” alternative.

    Apple is without question the iconic brand.

    There are very few companies whose logo does not include the company name or initials.

    Around the world when you see a sleek well made beautifully designed product with a white Apple on the back with a bite out of it, does anyone ask – Gee I wonder what brand that is?

    So in a crowded field of impostors, when a buyer is uncertain, the brand that everyone talks about, and is visible and ubiquitous seems compelling.

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