So, Google has set the Android phone to launch in 2008. How does Google make money from this. My train of thought on this was long and complicated, but here's the gist.
- Google partners with handset makers to make android handsets. Handset makers make handsets so Google does not have to do hardware itself (or at all).
- Google starts Android software and after it's finished makes it open source, so Google can assign fewer engineers to the project.
- In 2008 the first handsets running Android firmware 1.0 are released for consumers to buy. Each handset maker is marketing its own handset, so marketing incurs no cost to Google.
- Google has its own search as the default on the android phones. Most people are too lazy to change to a different search engine and continue using Google.
- Google serves ads to all of the android customers and makes more than it invested over the project, while building its brand image from the phones.
Overall, Google's ROI is equal to its Initial Effort + Open Source + Handset Makers. I think Google knew it would come out on top.
1 comment:
Also, google gets ROI in the form of damaging microsoft, a competitor.
I think google hasn't laid down their hand yet. Like when you're playing poker and some guy says "I got the pair of queens" pauses... "with the queen kicker." Google showed us something , but what are they holding back?
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