Google Sharing Money With Android Phone Carriers

[JMcEntegart]

Is sharing ad revenue the secret to Android's success?

Google Sharing Money With Android Phone Carriers : Read more

 

[Jerky_san]

I suppose thats the difference between google and apple.. They are totally willing to share the cash if they can take the market by storm..

 

[Scotteq]

'Revenue... Sharing!?!!?'


I can hear Jobs rolling over in the grave he hasn't taken refuge in yet... all the way from here.

 

[Clintonio]

[citation][nom]Scotteq[/nom]'Revenue... Sharing!?!!?'I can hear Jobs rolling over in the grave he hasn't taken refuge in yet... all the way from here.[/citation]
His Crypt you mean? He's like a money vampire after all. Sucking those foolish enough to buy from him totally dry.

 

[JohnnyLucky]

But they only share revenue if their own apps are installed. Sounds more like paying to have their apps included.

 

[Silmarunya]

Google is paying big money to take the market by storm and they need to do it, because when they entered a field that was already being dominated by Apple. Congratulations for Google, it turns out their engineers are good and their pockets deep.

However, how long will these deals last. Let's just assume that in two years time Android reached its goals (just a random timeframe). What will happen at that point?
a) Google continues paying, sharply reducing their profits, especially compared to those of Apple.
b) Google ends these deals, increasing its profit. However, they risk losing the sharp market share growth, potentially even seeing a decline as carriers and manufacturers will get their profit elsewhere, raising prices for the consumer.

So I can't really imagine this to be a way of gaining market share that's built to last...

 

[serkol]

Right, this is the difference.
Carriers fight for the right to offer iPhone, without Apple paying them a penny.
Google pays to carriers to accept Android phones.
Makes you think, which phone is better?...

 

[mayne92]

Good for Google! :-D

 

[jnjkele]

Yeah, I should think that paying people to offer your product would lead to rapid adoption. I wonder how long it is before google starts paying the phone users too. Kinda makes you wonder why they have to pay these carriers to offer android products.

 

[cscott_it]

[citation][nom]serkol[/nom]Right, this is the difference.Carriers fight for the right to offer iPhone, without Apple paying them a penny.Google pays to carriers to accept Android phones.Makes you think, which phone is better?...[/citation]

I think that's a bit of a misnomer. If you came to a carrier and said "Hey, I have this fad that is catching on, and I'll even share some profite with you", would you be more inclined to push that as your top tier phone and increase advertising and marketing budget of it?

Furthermore, Apple is currently the king of non-business smartphones. If a carrier has an exclusive contract, they are naturally going to generate more revenue.


In all honesty it has nothing to do with which phone is "better" it has to do with which has the larger marketshare.

 

[jojesa]

[citation][nom]Silmarunya[/nom]Google is paying big money to take the market by storm and they need to do it, because when they entered a field that was already being dominated by Apple. Congratulations for Google, it turns out their engineers are good and their pockets deep.However, how long will these deals last. Let's just assume that in two years time Android reached its goals (just a random timeframe). What will happen at that point?a) Google continues paying, sharply reducing their profits, especially compared to those of Apple.b) Google ends these deals, increasing its profit. However, they risk losing the sharp market share growth, potentially even seeing a decline as carriers and manufacturers will get their profit elsewhere, raising prices for the consumer.So I can't really imagine this to be a way of gaining market share that's built to last...[/citation]

Well, Microsoft is about to enter the cellphone arena and both Apple and Google better keep up; anyways, the more the merrier for us the consumers

 

[tayb]

What? This is bullshit. They are essentially paying cash for manufacturers and carriers to use Android and to use Android with google services. How is that not anti-competitive?

 

[nebun]

google is becoming greedy

 

[the_krasno]

Most of the comments fail to understand that what Google is doing is being a savvy business. By sharing profits with manufacturers and carriers they increase sales. The extra profits gained may even cause the prices to drop! Which is good to us, because that raises competition and that means better, cheaper products to choose from.

It's not about being greedy, it's about being smart. What is good to the customer is good to the business, something Apple fails to understand (treating customers like criminals, having a lousy app store that rejects useful apps for stupid reasons, etc...)

 

[Guest]

come on folks read the article, as well as the standard incentive Google is sharing some of the click through revenue, if the user didn't click a paid link no one gets squat

 

[cscott_it]

[citation][nom]clickmyad[/nom]come on folks read the article, as well as the standard incentive Google is sharing some of the click through revenue, if the user didn't click a paid link no one gets squat[/citation]

Well, there is also app sales, which I imagine would contribute more than clickthroughs.

 

[Abrahm]

[citation][nom]serkol[/nom]Right, this is the difference.Carriers fight for the right to offer iPhone, without Apple paying them a penny.Google pays to carriers to accept Android phones.Makes you think, which phone is better?...[/citation]
Except Verizon didn't beg for the iPhone, it turned it down. But it really has nothing to do with which phone is better, as the Android OS and hardware are years ahead of anything Apple can produce, and with so many players working on it, Apple will never be able to catch up.

 

[Guest]

I didn't expect google to make their move this soon. Good or them!

 

[Pei-chen]

Wasn't revenue sharing that got Intel into trouble? I am paying you to put my CPU / software into your product instead of a competitor’s.

 

[apmyhr]

I don't know. I feel like Intel and Microsoft have been fined for billions of dollars for doing similar things. Is this really that much different from Intel paying off computer makers to use Intel processors over AMD? I guess you could say Intel was paying people off to NOT use AMD products, but think for a minute, if a carrier were to include both Bing and Google apps, do you think Google would still pay them?

Thing is, I'm not saying I think its anti-competitive or bad. I just think the EU or US governments might consider it anti-competitive.