Is Android Killing Google?

April 1, 2012 in Daily Bulletin, Signature

Brian Hall believes that Android, Google’s mobile computer operating system, is hurting Google. Here’s why:

  • The reviews of Google’s devices are negative compared to other smartphones. Both the iPhone and the Windows Phone provide a better experience.
  • Despite the huge drain on its revenues, Google isn’t making much money from Android. Samsung, Android’s most popular device manufacturer might be making some money, but not Google.
  • One estimate suggests that Google has made just $550 million from Android. Yet Google has spent up to $20 billion on Android.
  • In fact, Android might be hurting Google’s core business of search from which it still derives the vast majority of its revenues, slowly killing the entire Google enterprise. Reasons include:
    • Google receives more search queries from the iPhone despite the iPhone having a smaller market share, suggesting that Android’s dominance has failed to help Google’s search business.
    • People don’t really search on their mobile phones anymore anyway. They use apps and Google makes no money from this.
    • Even if people did use Google search on Android the value of ads on small-screen smart phones is low.

To read what the future of smartphones is, why Android probably won’t figure in it, what Google should do, and why Amazon has benefitted from Google’s wastefulness click here.

Source: The Examiner