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Is Google killing itself with Android?

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Is Google killing itself with Android?

I stumbled across an interesting article at the Examiner.com, asking if Google was still relevant.

Its a pretty long article, so I will summarise the main point.

They note Android is not making Google much, with recent estimates arising from a Google filing in court suggesting the company only made $550m since 2008 from Android, but, with the Motorola purchase, would have spent more than $20 billion so far on the OS.

At the same time while nearly dominating the mobile market, the company is diverting users away from their real cash cow, the desktop search market (with the desktop supported for free by Microsoft of course), responsible for much more than 90% of their earnings.

And on mobile, users do not search the web, they use apps to get information. Brian Hall at the Examiner writes:

In almost all cases I instead go to Siri or an app. For flight information, for restaurant reviews. To check on what friends are doing. To discover new relationships. I go directly to the Wikipedia app or to the Amazon app or to WorldMate or Yelp, for example.

I go into the Twitter app to discover trends, find new people to follow.

And of course you can fit much less ads on a small screen.

At the same time their “android success” is distracting the company from concentrating on real challenges like Facebook and Twitter and even Bing. All the time while Motorola drains their profitability.

The full article is a fascinating read at why Android may end up being Google’s white elephant. See it here.

http://m.examiner.com/technology-in-madison/is-google-relevant
 
http://www.theverge.com/2012/3/29/2911262/iphone-android-google-revenue-oracle-fuzzy-lawyer-math
Reports are surfacing today that Google only generated about $550 million from Android since 2008, and that it earns far less from Android devices than it does from Apple handsets — but this really isn't likely to be the whole picture. The figures are coming from a recent Google court filing that offers Oracle a percentage of Android revenue as patent damages, in which the $550 million figure is extrapolated from a percentage of total revenue it's willing to pay (0.5% + 0.015% of revenue, or $2.8 million). The only problem with this calculation is that the extrapolation is likely to be very inaccurate: Google's figures are interpreted from their finance expert in the case, and it's likely that the company is minimizing the revenue for damages as a defendant. In this case, Google is looking at a small portion of the app or ad revenue and not giving the patents Oracle is complaining about credit for all of it — so the extrapolation is filled with variables that we can't know at this time. On analogy, Google only wants to pay for a lug nut, while Oracle wants it to pay damages for the sale of the whole car — so Google's obviously not going to reveal how big that car actually is just yet.
Click to expand...
 
RoomService said:
Is Google killing itself with Android?

I stumbled across an interesting article at the Examiner.com, asking if Google was still relevant.

Its a pretty long article, so I will summarise the main point.

They note Android is not making Google much, with recent estimates arising from a Google filing in court suggesting the company only made $550m since 2008 from Android, but, with the Motorola purchase, would have spent more than $20 billion so far on the OS.

At the same time while nearly dominating the mobile market, the company is diverting users away from their real cash cow, the desktop search market (with the desktop supported for free by Microsoft of course), responsible for much more than 90% of their earnings.

And on mobile, users do not search the web, they use apps to get information. Brian Hall at the Examiner writes:

In almost all cases I instead go to Siri or an app. For flight information, for restaurant reviews. To check on what friends are doing. To discover new relationships. I go directly to the Wikipedia app or to the Amazon app or to WorldMate or Yelp, for example.

I go into the Twitter app to discover trends, find new people to follow.

And of course you can fit much less ads on a small screen.

At the same time their “android success” is distracting the company from concentrating on real challenges like Facebook and Twitter and even Bing. All the time while Motorola drains their profitability.

The full article is a fascinating read at why Android may end up being Google’s white elephant. See it here.[/COLOR]

http://m.examiner.com/technology-in-madison/is-google-relevant
Click to expand...

the part in red was where u were sposed to be like oh man fuck this android article...
 
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Isn't most the money made off apps? Android doesn't sell a lot of apps and the apps are usually lower quality than ios counterparts.

On top of that doesn't Google have a much lower premium to charge the carriers than ios?

I would expect this, you can basically a Android apk online for free and Android games aren't that great compared to ios.

I think apples big money maker is the video games, not the productivity apps.

Sent from my PC36100 using Tapatalk
 
RoomService said:
Is Google killing itself with Android?

I stumbled across an interesting article at the Examiner.com, asking if Google was still relevant.

Its a pretty long article, so I will summarise the main point.

They note Android is not making Google much, with recent estimates arising from a Google filing in court suggesting the company only made $550m since 2008 from Android, but, with the Motorola purchase, would have spent more than $20 billion so far on the OS.

At the same time while nearly dominating the mobile market, the company is diverting users away from their real cash cow, the desktop search market (with the desktop supported for free by Microsoft of course), responsible for much more than 90% of their earnings.

And on mobile, users do not search the web, they use apps to get information. Brian Hall at the Examiner writes:

In almost all cases I instead go to Siri or an app. For flight information, for restaurant reviews. To check on what friends are doing. To discover new relationships. I go directly to the Wikipedia app or to the Amazon app or to WorldMate or Yelp, for example.

I go into the Twitter app to discover trends, find new people to follow.

And of course you can fit much less ads on a small screen.

At the same time their “android success” is distracting the company from concentrating on real challenges like Facebook and Twitter and even Bing. All the time while Motorola drains their profitability.

The full article is a fascinating read at why Android may end up being Google’s white elephant. See it here.

http://m.examiner.com/technology-in-madison/is-google-relevant
Click to expand...

This is where the article is flawed. Google is activating thousands of phones a month. All search functions go through Google on the phones, its integrated into the systems. Additionally, many of the apps on Android have ads on them as well. Same as on iOS. Whoever wrote this article either doesn't understand the mobile ecosystem and is just a big dummy.
 
Nope Google is losing by trying to be everything, which is what happened to Apple and rim. Google + is a disaster, from a user attachment rate, but they are putting so much into it. It's an article floating around that essentially states that google is to focused on social ad revenue under the current regime. With all that being said, they still have an insane amount of cash that they generate on a daily basis.

Sent from my Nokia 3390 using Tapatalk
 
RoomService said:
Perhaps... What if this was said about rim 5 years ago who would have believed it.:dunno:
Click to expand...

People were saying that what's happening to RIM would happen five years ago for various reasons and most of them ended up being correct. As the other article said, they are low balling what they are making to pay as little as possible to Oracle. It's creative accounting.
 
Holy shit I just read the article. Damn this dude is an iPhone shill. Look at this part:

Only, it's worse. Part of the reason for my cutting back on coverage of Android was because Android -- as owned and operated by Google -- is becoming less relevant. iOS, Windows Phone and, yes, the tried and true Blackberry offer superior operating systems.

And better devices.

And better security.
Click to expand...


Blackberry OS is better than Android?? WTF?!?!?!
 
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Maxxam said:
does it matter :confused:
Click to expand...
long term maybe.

AT&T has decided that they are looking to break up with Apple. Nokia is making Microsoft cool again with their Nokia Lumia 900 design and hip marketing. Combine that with the fact Verizon is the Android company so AT&T won't push their devices and Apple is such a pain in the ass to be in business with; a perfect storm has been created that could push Windows Phone right into relevance. :dunno:

AT&T to introduce the Lumia 900 with impressive marketing rivaling the iPhone
 
RoomService said:
long term maybe.

AT&T has decided that they are looking to break up with Apple. Nokia is making Microsoft cool again with their Nokia Lumia 900 design and hip marketing. Combine that with the fact Verizon is the Android company so AT&T won't push their devices and Apple is such a pain in the ass to be in business with; a perfect storm has been created that could push Windows Phone right into relevance. :dunno:

AT&T to introduce the Lumia 900 with impressive marketing rivaling the iPhone
Click to expand...

i still dont get why it matters.

plus the whole industry is heading towards a prepaid/ no contract model.

and windows mobile will stay behind android and apple for the foreseeable future. they will eventually replace rim as permanent 3rd place.
 
Maxxam said:
does it matter :confused:
Click to expand...

Yes it does, because prepaid/metro services typically offer slower speeds, or less coverage, and people who don't have the funds or the want to buy applications. Who cares if every free phone is Android when 95% of the buyers are just using it as a phone. This is exactly what developers are talking about when they state that Android users tend to not buy anything.
 
:ssshhh:
Ryokurin said:
Yes it does, because prepaid/metro services typically offer slower speeds, or less coverage, and people who don't have the funds or the want to buy applications. Who cares if every free phone is Android when 95% of the buyers are just using it as a phone. This is exactly what developers are talking about when they state that Android users tend to not buy anything.
Click to expand...
 
Ryokurin said:
Yes it does, because prepaid/metro services typically offer slower speeds, or less coverage, and people who don't have the funds or the want to buy applications. Who cares if every free phone is Android when 95% of the buyers are just using it as a phone. This is exactly what developers are talking about when they state that Android users tend to not buy anything.
Click to expand...

bro in a yr or 2, most plans are gonna be prepaid/no contract and they'll be incorporating 4g data as well.

look at what tmobile is doing w/monthly 4g
or the test that republic wireless is doing w/ the $19amonth wifi hybrid phone
 
Some of you, including that stupid site with the moron blogger, don't know shit about much. Android is free, Google doesn't charge anything for it. They continue to make money on it's core services, search, which I'm guessing some of you moron's don't know is all in Android. From looking through your contacts, voice actions, maps, online search, etc... They continue to dominate the search business, and continue to dominate the mobile space. They still are making a killing in terms of $$$ on their advertising, recently have hired some very famous nerds to assist with Google+ and other services. Kevin Rose being one. No one, not even Google, projected to kill FB in a year, it will take time to get people to move away from something so stuck right now. But when a user compares the two services, you'll find Google+ is actually more innovative and has more cool options, if, IF, your big into social media and the like. They aren't losing money, they are just finding that when your on top, EVERYONE, wants to knock you down. Once Google figures out how to force manufactures and carriers to stop messing up update schedules, making sure every phone is at least updated to the latest versions of Android within the promised 2 year guarantee, and as they slow down pushing so many phones out per year, which HTC, MOTO, Sony, and soon Samsung have all promised to do, where they will push maybe 3 to 4 phones out, if that, maybe less, in a given year, that will continue to push Android and Google, and the core services where Google makes it's cash cow to even more people moving to smart phones.
 
Ryokurin said:
Yes it does, because prepaid/metro services typically offer slower speeds, or less coverage, and people who don't have the funds or the want to buy applications. Who cares if every free phone is Android when 95% of the buyers are just using it as a phone. This is exactly what developers are talking about when they state that Android users tend to not buy anything.
Click to expand...

What does that have to do with how Google makes its money? Google wants you using it's services, they dont care if you're on cricket or Verizon. You don't have buy Google's apps. they are an advertisement company. They are targeting ads to users.


http://investor.google.com/corporate/faq.html#toc-money
the majority of our revenue comes from advertising.
Click to expand...
 
themainman said:
bro in a yr or 2, most plans are gonna be prepaid/no contract and they'll be incorporating 4g data as well.

look at what tmobile is doing w/monthly 4g
or the test that republic wireless is doing w/ the $19amonth wifi hybrid phone
Click to expand...

Tmobile also wants to convince people to buy phones at the full unsubsidized price, but also admits that most American's won't pay $600 for a top of the line phone like everyone else. Not to mention their $30 is only 30mb of data, the $40 only has 100 minutes and the $50 is the first 100mb at '4g speed'

And Republic Wireless is going after the specific user. The person who uses their phone for data, not voice, which also likely has wifi. Something that the average metroPCS user who struggles with paying the $40 a month probably won't have, or has DSL lite.

And before you say it, MetroPCS intentionally limits their 4G to slightly faster than the average 3G coverage out (4-5mb) because of marketing, and their intent to sunset CDMA in favor of VoLTE. If you think they will hit Verizon speeds someday you are going to be disappointed, and for what it's worth Verizon's speeds will slow over time to around 12mb when they start to transition over.


As long as top of the line phones are still $600 to own outright, and there's limitations on prepaid plans, post paid isn't going anywhere.
 
Maxxam said:
What does that have to do with how Google makes its money? Google wants you using it's services, they dont care if you're on cricket or Verizon. You don't have buy Google's apps. they are an advertisement company. They are targeting ads to users.


http://investor.google.com/corporate/faq.html#toc-money
Click to expand...

You completely ignored the part when I said a lot of the prepaid users do not surf the web, buy apps or anything on their phones. That means no advertising revenue. The comment anyways was targeted towards the "Android get's almost a million activations a day, so everything else sucks" BS that always comes up when someone is critical about Google or Android.
 

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