Two primary techniques against Apple have worked to make Google the big player in the mobility market; open platform and free software. Using the two main principles of what is called “Open Source”, Google has once again proven that free is the most profitable business model of all, and you don’t even need a winner to win the game.
Google has tried to enter the hardware end of the mobile market several times, all with mixed results. However, due to the market hype around the launch of the Nexus One, Google’s first branded smartphone, it’s hard to imagine that other mobile phone makers were inspired to switch to Android by the hype, and everyone thought that the hype was the sole property of Apple.
Proven viability of the platform
Once Android was proven to be a viable platform for the smartphone market, Google let its own hardware platform fade away and the others exploded on the market. Does anyone really believe that Google just “got lucky”? Apple has always refused to share in the fun and has kept both technology and the market for Apple products on a closed platform. Google makes money off everything for free and by leveraging that weight and the smart move of the Nexus One, Android is the new standard for smartphones and tablets.
On the app market end, Google also offers it to the developing community. Apple’s recent announcement of its 10 billionth app download comes on the heels of the announcement that Android devices are being activated 300,000 times a day. Android app developers have a free and open path to that huge market; Apple, not so much. This means more developers, competition and growth, ultimately mass market vigor, which also allows more Android apps to continue to be made available for free, further fueling distribution and growth.
Competition and the struggle for dominance
Why should Google fight to succeed in the mobile hardware market when there are so many great phone makers lining up to get Android? Well, it has something to do with the fact that Android is not only free, and can be freely customized by any company using it, but companies also get paid to install it. Maybe that’s where the 300,000 activations per day come from?
Could Apple have imitated Google’s strategy and won the game? No. For decades, Apple has followed the closed-market exclusivity that shaped the Mac and the Apple operating system. They couldn’t just turn 180 degrees at the last minute. The best weapons against Apple in the mobility market are two words; free and open Apple is not dead yet, and the company has a sizable customer base, which will continue to be part of the landscape.
However, for every iPad or iPhone that connects, many times that many Android devices will be activated. Ultimately, the new ecosystem of app mobility, cloud computing assets, and consumer apps will favor Google for sheer volume. Much of this will come from the global Android market, where price is a major issue for both consumers and developers. The future mobility market will be Android and Google.