Tuesday, November 1, 2011

Was Google’s Gamble on Android Really Worth It?

When the original iPhone launched in 2007, Google and Apple actually had a good relationship. Google was set to be the iPhone’s default search engine, and Google was also going to power the handset’s Maps application. Everything was wonderful. And then came Android.
The Android operating system was born in Palo Alto, California in 2003. Two years later, the company was acquired by—you guessed it—Google. The deal was worth an estimated $50 million, but the Android OS could end up costing Google much more than that…
Why it Began
To understand whether or not Android has been or will be a successful venture for Google, you have to understand why it all began. Google’s sole purpose for entering the mobile OS market was for advertising. Anyone who says anything different obviously doesn’t understand the company’s business model. Andy Rubin himself said that Android was designed for “smarter mobile devices that are more aware of its owner’s location and preferences.”
After acquiring Android, Google distributed the mobile operating system to handset manufacturers with the promise of a low-cost, free to license, upgradeable OS that would give companies a fighting chance against the popular iPhone. But more importantly, the operating system removed another barrier between users and Google’s search engine. Have you ever tried doing a search on an Android phone? It takes you straight to Google.com (not Yahoo, not Bing) and its hoards of advertisements. Now how does Google make its money again? Oh yeah, advertising.


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