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Google has been horrible investment since Android
- Thread starter pflau
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What do you define as "failed" ?
Leading the smartphone revolution in regards to number of phones running Google's OS?
PS - ANOTHER thread about Google/Android. Thought this was a Mac Forum, Fanboys?
I can see *that* Google have developed Android and given it away. I just struggle to see *why* they developed Android to give it away. How does Google aim to commercially?benefit.
The business model does seem a bit strange if it's entirely based on advertising revenue. I just thought about it, and I can't actually recall a single advertisement on a mobile device. Not one.
C.
Ever hear of AdMob? Google makes a ton of money on Android apps that have built in ads.
they wouldn't have needed android for that, though.
before iAds, and even nowadays, still, there's plenty of admob in iOS, BB, and OVI apps
Wireless carriers probably give Google a good sum of money to ensure that Android sees continued development.
As I read it AdMob turned over $100M in 2009. Most of that money went to publishers - which netted AdMob only $40M in profit.
Google paid $750M for the company. So it will be a quite a while before they get they break even.
Worst still is that half of that 2009 revenue ($20M) was from iOS devices. So now Apple will be chasing after that with their iAds.
So I am puzzled about where Google thinks the money is going to come from.
C.
Google paid $750M for the company. So it will be a quite a while before they get they break even.
Worst still is that half of that 2009 revenue ($20M) was from iOS devices. So now Apple will be chasing after that with their iAds.
So I am puzzled about where Google thinks the money is going to come from.
C.
Have you any evidence of that?
A couple of weeks ago, I heard a rumor that Microsoft actually paid hardware manufacturers to licence Windows Mobile!
C.
It's a guess. With how close Google and Verizon are getting it wouldn't be surprising either.
I'm sure if you search for Google's Android jobs you'll see roles outside of just the Software Development, probably something in "Product Approval" where companies can get a "Google Approved/Endorsed" sticker or the likes for a sum of money.
Lets not forget that Android phones promote the usage of Google products, which can lead to more revenue indirectly.
You could be right, but...
I find it hard to see how Google benefit commercially from funding the development of Android.
I find it even harder to see how Verizon would benefit.
C.
Verizon benefits because it now has a product that draws both smartphone users from other companies (i.e. iPhone) and dumbphone users to Verizon's smartphones. And wireless companies make more money from smartphone devices than they do from dumbphones.
It certainly benefits Verizon to have sexy handsets that rival the iPhone.
But couldn't Verizon achieve the same thing by simply tempting HTC and other Android manufacturers to Verizon?
C.
It is definitely in the interest of Apple to see Google stay alive. There are already headlines every so often about how Apple is being investigated for their apparently monopolistic practices. So having Google as a competitor is good to shut certain people up. But the thing is I just don't see how Google can survive by developing Android. Sun already failed, and after Oracle bought Sun the first things they do is to sue Google for the use of Java, and to terminate the free OpenSolaris project. So free = not commercially viable. I just don't see how Google not end up being a one trick pony in the long run.
Lets say Google decides because it is unprofitable to cease development of the Android. Suddenly Verizon's future in the smartphone sector doesn't look too good, not to mention the investment backlash they might get. Simply negotiating terms with Google such as "You will continue development for X years for Y money" can prevent something like that from happening.
Google's presence certainly does not hurt Apple. And as you say, may actually help Apple in some ways.
What it does do however, is utterly destroy Microsoft's chance of entering the market. Who is going to pay actual money to licence a new OS now?
The press likes to depict Apple and Google as slugging it away like two heavyweight boxers. What nobody seems to notice is that all the blows land on Microsoft.
C.
Well that would put around a 5.3% return on investment after you account for overhead I would say 3-4% return on investment. That is a pretty good deal in today's economy. I am also willing to bet that Google could sell adMob for more than 750 mil so that is even more money made.
That would imply that Android really is extremely unprofitable.
Of course, if iPhone arrives on Verizon in January, they would have less reason to back Android.
C.
If that's the best return Google can do, it's pretty poor.
As the OP said, they'd be better-off investing in Apple shares!
C.
Well if Android was profitable (which it likely is) then Google is benefiting from it.
