Non-Obvious Android Opportunities
by Sam Dean - Oct. 20, 2009Comments (1)- Related Blog Posts
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Matt Asay has an interesting item up today on non-obvious ways that Google's Android operating system can lead to a lower cost infrastructure for mobile technology usage, and a big boost for Google's mobile search business. He notes this quote from Google CFO Patrick Pichette, from Google's recent earnings call, where rosy numbers were reported: "If we move forward the adoption of these smartphones by having a lower cost infrastructure because it's open source...all the (mobile) searches...will happen so much faster." The point of that isn't just that you can buy an Android smartphone for less than the competition because the OS is free--that would be a very incremental kind of cost savings. It's the freedom from vendor lock-in and licensing costs that can kick in real cost savings over time. As that helps pave the way for Android adoption, Google's lucrative search business also gets a healthy boost.
In Google's recent earnings call, CEO Eric Schmidt said "Android adoption is about to explode," adding that all conditions for that event have been met. There are 12 Android phones available now, and there will be close to 20 by year's end, including the highly publicized new Droid phone, It will run Android 2.0, and is a result of a three-way partnership between Google, Verizon and Motorola.
Google benefits big-time if Android does take off in a big way. As the Washington Post reports:
"...mobile searches on Google were up 30 percent from the second quarter. Of course, they wouldn't say how many total mobile searches there were or what percentage of all searches they represent (probably still a very small subset), but they are very bullish about the company's mobile prospects."
That's the way they think over at Google. Anything that can increase the company's hugely lucrative search-and-advertising business is worth pursuing, and there is no doubt that company officials view Android through that lens. In his post, Asay notes that Google "...has intentionally spread Android's risk--and chances of success--through its open source license." That's one smart move that Apple hasn't made.Â
