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View Full Version : Real reason why Android is growing fast?



Ben
18th November 2009, 10:33 PM
http://mobile.slashdot.org/story/09/11/18/0051243/Less-Than-Free?art_pos=19

When I asked a mobile industry veteran why carriers were so willing to dance with Google, a company they once feared, he suggested that Google was the 'lesser of two evils.' With Blackberry and iPhone grabbing more and more subs, the carriers were losing control of the customer UI... With Android, carriers could re-claim their customer 'deck.' Additionally, because Google has created an open source version of Android, carriers believe they have an 'out' if they part ways with Google in the future. I then asked my friend, 'So why would they ever use the Google (non open source) license version?' ... Here was the big punch line — because Google will give you ad splits on search if you use that version! That's right; Google will pay you to use their mobile OS. I like to call this the 'less than free' business model. This is a remarkable card to play. Because of its dominance in search, Google has ad rates that blow away the competition. To compete at an equally 'less than free' price point, Symbian or Windows Mobile would need to subsidize.
Har har har! I suppose it's like how they pay/paid Mozilla a share of clicks generated via Google search in Firefox. A nice revenue stream for operators/manufacturers? Bizarre.

gorilla
19th November 2009, 12:38 PM
This is a win win for all parties: The consumer should get cheaper handsets and tariffs, the operator gets a cut of ad revenue (which should increase over time) and google gets to dominate search (again!).

Ok, so not everyone will be happy, but this could really shake things up if true.

Ben
19th November 2009, 02:30 PM
It certainly gives Google a slightly underhanded advantage and opportunity to dominate on mobile. Will Android win out because it's the best, or because Google is effectively bribing the operators?

gorilla
20th November 2009, 01:06 PM
Let's hope is a bit of both. The more I learn about Android the more compelling the argument is for me switching to it when the time comes.