Quote:
Originally Posted by RockdaMan
...No, it's Google that doesn't profit directly from Android...
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I don't have any insights into Google's business model for Android, but at least 3 ways for Google massively profiting from Android come to mind (one might discuss, whether they're direct or indirect):
- All purchases in the Appstore, similar to iTunes, run via Google checkout. They certainly have their margin in this.
Okay, there are ways around the Google checkout, even easier than jailbreaking your iPhone. But certainly the majority of Apps is purchased via the Android market...
- There are tons of Google services integrated into Android. Some of them you find on iOS as well, but typically they are way more advanced (Googlemaps for one) on Android, Google's own platform. All those Google services, for example checking for restaurants in Googlemaps,
basically link back to Google's original core business: Advertising via web platforms and their search engine.
- I guess it's similar to Amazon's bookstore. In the beginning, everyone was assuming Amazon's making a loss on every single ebook they've sold for $ 9.99. But that was, when building up their market share. Now, quite surprisingly, majority of the others sell for the very same price. Either the publishers have reduced their prices because of Amazon's buying power. Or the others have to go for that price to even survive against Amazon. Anyway: Android basically is a startup. Most startups aim for growth and only after that for profit.
In general: I'm pretty sure, Google, Amazon, Apple and the likes have longterm strategies and business plans for 2015 already in place...