Google’s monetization of Android – or lack thereof

Sal Marvasti poses three questions via Seeking Alpha:

• If Android phones outsell iPhones and Windows Phones, why do developers still prefer to write for Apple first? (maybe we should ask Seeking Alpha)

• Why does Android’s higher unit sales provide no financial benefit to Google investors (as of yet)?

• Why did Google leave out international language support for Android regional builds? Why did Google try to fix internationalization half-heartedly in Android 4.1?

“These questions are important if you are an investor in online smartphone-related businesses, whether in app developers or content providers like Facebook, or Google itself,” Marvasti writes. “In the rest of this article, and possibly a future follow up, we will attempt to give our view of the answers, drawn from third-party research and our own proprietary and non-public models.”

Marvasti writes, “Google’s Android is the most popular smartphone mobile OS, but many are unaware of its monetization for Google. We will demonstrate why it cannot be half as good or as important as Google claims.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Chris” for the heads up.]

Related articles:
Android, schmandroid: Apple’s iOS platform is the undisputed app cash king – December 18, 2012
Developers overwhelmingly choose iOS first as interest in Android wanes for third time in last four quarters – October 2, 2012
Study: iPhone users vastly outspent Android users on apps, respond much better to ads – August 20, 2012
Apple utterly dominates mobile device market with 6% market share – and 77% of the profits – August 6, 2012
Apple’s iOS over 4 times more valuable to developers than Android – June 7, 2012
Game over, Android: Apple owns 84% of mobile gaming revenue – May 7, 2012
Wealthy smartphone users more likely to have iPhones; less likely to play games, tweet – April 2, 2012
U.S. Apple product users split evenly between Republicans and Democrats; Half of U.S. households own at least one Apple product – March 28, 2012
Study: iPad users more likely to buy – and buy more – online than traditional PC users – September 29, 2011
Apple iPhone users most open to mobile payments – August 22, 2011
iPhone users smarter, richer, less conservative than Android phone users – August 16, 2011
Apple iPhone users spend significantly more on their credit cards than non-iPhone users – November 5, 2010
Study: Apple iPhone users richer, younger, more productive than other so-called ‘smartphone’ users – June 12, 2009
Nielsen: Mac users are better educated and make more money than PC users – July 12, 2002

43 Comments

  1. I don’t know if Android is the most popular mobile OS. Would you equate large numbers of adopters with popularity or attribute that to something simpler: people’s predisposition to buy cheaper products in preference to a more expensive one.

    And so the result of this is the proliferation of Android but not the enrichment of its creator Google, at least not on the scale that its adoption rate would suggest.

    I think Google’s strategy is to create a network effect for Android thereby drawing in advertisers. And so the focus of Android is not so much the user experience but in breeding large numbers of rats that use it from which data can be extracted and sold. That’s Google’s modus operandi.

    Contrast that with Apple which seeks to maximise user satisfaction above all else for which they charge a small premium to maintain a sanctuary of sanity. That is the trade off between Android and iOS. One puts breeding like cockroaches at the forefront, the other puts its customers first.

    To the extent that they’re not mutually exclusive, in other words they can both prevail as they cater to different segments of the market, this will in time lead to the one who derives a greater economic benefit from the ecosystem thriving and the one giving away things free less successful in innovating the next big thing.

      1. Yeah well, it only took a year for the information to gestate and a day to write a comment that saved his lonely nut for another year.

        While we’re on the subject,

        MERRY  CHRISTMAS AND A HAPPY NEW  YEAR!

    1. Agreed. There’s still a large market that Apple hasn’t touched upon: pay as you go cellular plans. Android rules there since there isn’t a readily available alternative at the moment. Some people choose Android because there is no other choice with their cellular provider.

      Some people DO prefer the Androids broad lineup of products with larger screens and flash card compatibility & whatever you can think of. But out of all the consumers of Android devices, I think most Android users do realize that the iPhone is the cream of the crop. The majority of people I see with Android phones really wanted an iPhone, but had no choice given their phone service provider doesn’t offer it. Just a minority of Android fans that choose Android are concerned that Apple’s platform isn’t “open”, and whatever other propaganda Google astroturfs via comment sections of tech articles, and the tech articles themselves (via whorish Google-paid journalist shills.)

      1. “Just a minority of Android fans that choose Android are concerned that Apple’s platform isn’t “open”,…”

        That Android minority is larger than the group of iPhone users who prefer to Jailbreak their phones. Both choose live outside of Apple’s policies.

        “I think most Android users do realize that the iPhone is the cream of the crop.”

        The number of Apple users who believe iPhone is cream of the crop is smaller than the number of Android users who do, however I am here to state unequivocally,

        A Jailbroken iPhone 5 is the most amazing device on the planet and Android users by choice, can blow it out your ass!

        1. I’ve yet to find any clear reason as to why jail breaking my iP5 would dramatically improve my life and well-being, over and above the benefits it already brings within it’s svelte carcass.

  2. Android is so fragmented that it should not even be considered ONE platform. And that answers the first question about why developer support is less than for iOS; it is difficult to support a “platform” that is really splintered in to many sub-platforms.

    1. Yes, yes and yes! In every way that matters to the average person (i.e. non-geek), there is no such thing as “Android” or “THE Android Platform”. It really makes no more sense to talk about Android as one thing than to talk about OS X, Linux and all the varieties of Unix as one thing, and then to talk about Unix’s marketshare.

      1. In every way that matters to the average person (i.e. non-geek), there is no such thing as “Android” or “THE Android Platform”…”

        Madison Avenue says you’re wrong. The average person is paying attention and is very keen to the television commercials they see each day.

        Typical Android commercials show weaponized telephones wielded by fucksticks who believe Apple only makes toys and it would seem now legions of Droid lemmings are being told Android will become part of your DNA if you let it!

        The Android marketing strategy:

        • You and your phone become one with the universe, and know its secrets!

        • Android devices are otherworldly and forged in the fires of lightning strikes.

        • Medical appointments are orchestrated by your phone carrier for all of the optional Droid implants, to include weapons and tactical upgrades, and everyone’s favorite of course, X-Ray glasses!

        When I see someone with something other than iPhone, my sense is they’re all closet Alcohol, Tobacco, and Firearms (ATF) agents.

        1. Android phone ads make virtually no sense nor show what the phone can actually do. Droid phone ads are the worst. Galaxy ads are probably the best of a miserable lot, which is likely why Samsung sells more phones than the othe Android phone makers combined.

      2. There is a “The Android Platform” and it consists of the narrow set of Android devices that run Android 4.1, use Chrome for browsing, Google for search, and have the Google Play store loaded, like the Samsung Galaxy SIII, and not much else.

  3. Google is very focused on one thing, monetizing people. That’s it, one thing, we are their products.

    The sooner everyone realizes what many of us on MDN already know, the better. Google is not here for us, we are here for Google to monetize.

  4. Ik weet accepteren als ware met alle ideeën je hebt aangeboden op uw post. Ze zijn echt overtuigend en wil zeker werk. Toch, de palen zijn te kort voor starters. Kan net verlengen hen een beetje van volgende tijd? Met dank voor de post.

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