Google posts strong Q1 earnings

I meant wait!

Google’s revenue from the Android Operating System is strictly Ad driven. Google relies on searches for their revenue. Whether that be Desktop based or mobile based.
The more troubling thing going forward for Google is the number of Android devices. Yes Android is on 34 devices so far. With those 34 devices though they are still not selling as many Android devices as iPhones, let alone throwing in iPod Touches and now iPads.
So, Google has that many devices now. Each time the “Ulitmate Android” device comes out everyone with an Android phone will hold that up as the “new” standard. The Droid Incredible is on the way. It will be the biggest selling Android phone since the droid. Which will take aways sales of other Android devices. Does Google care? No. Google only needs to have the devices out there to make their money from search. But, their partners have to sell devices, which means they have to compete with one another.
To the “Geeks Geek” out there you want the latest and greatest. The problem is you make up about 60% of the Android crowd, which would seem good news for Google’s platform right? The problem is that you only make up about 5% of the buying public, if that much.
Android will gain some more market share. The mindshare though is somewhere else.

It’s a lot of things.

Ad’s obviously from some of the internal stuff (app store, browser). But also by tying in their apps they keep users locked into their services. So maybe they dont display gmail ads in android yet, but when you’re checking that same account on your pc, you will. Also with mobile computing becoming a huge segment, without putting themselves into the platform and becoming a major player they run the risk of getting shut out.

Since apples mobile devices are a closed system apple could effectively keep anything google from being accessible on their devices (ipod, iphone, ipad). Others could do the same, but with android taking over the smartphone market sometime this year, maybe next, (sorry iphone lovers). Google ensures that their main source of revenue (ads) has a healthy place to continue to flourish in the mobile market.

Also dont forget brand recognition. You have a Google phone, so you may as well use Google for search, maybe convert from hotmail or yahoo to gmail. etc…

Google is a very smart company in a lucky situation. Since they are a ‘darling’ of the industry and have kick butt financials every quarter they can afford to dump money into areas that dont offer direct profit. Areas that investors normally pitch a fit at. This allows Google to be an innovation based company and not one driven exclusively by reactions to the market and/or trying to make pretty quarterly reports. Only a few public companies have this kind of flexibility.

Why would Apple drop Google services? What yourself and others might think about doing is learning something about business.
Apple is in no hurry to not be a partner with Google. Google has some kick ass products. If you would read the post(s) or just try to understand them you might get it. Google has to depend on their device makers to continue to use Android. Numerous companies are already planning on using both Android and WP7. Search isn’t as big in the Moblie space as it is on the desktop. I probably do twenty or so Google searches a day on my desktop and usually it is one click through per search. Now, on the mobile side I probably don’t average one google search a day on my iPhone. It wouldn’t matter if I owned an Android device because I still do very little mobile searches which is where Goolge makes their money.
Google’s approach to being the mobile version of what Windows was to the desktop is not going to work. Now, Google could make a lot more money by charging a licensing fee for the OS. Then again, surely that would push people over just using WP7. Apple is in a totally different arena. Apple has Apple as a cometitor and that is it. It is something that most people (including most of you) have never gottent. Apple owns 100% of the Macintosh market. Apple owns 100% of the iPhone market. Apple being a vertically integrated company gives them every advantage under the sun. They don’t have to worry about someone else coming out with a ne iPhone OS device two months after they just launched their “latest and greatest”. They can take their time with whatever products they want. The only company that puts pressure on Apple is Apple.

And you are a person who doesn’t understand business.

No, only someone that runs a successful business would tell you that you know nothing about business. Time will prove two things in this matter:

1. That you are wrong
2. That I am right

Wow, an instance of two basement dwellers wanting to be me at the same time. This is what cements the idea that I am what makes BGR go. Everyone wants to be me.