Monday, November 22, 2010

Google Android search cash cow drying up?

It looks like the Android experiment from Google may backfire. Google makes money from Android by having Google search as the default search engine. But the carriers are now finding that they don't really need Google. They can use whoever makes it worth their while. So Google may need to start paying for having Google as the default search, cutting into profits. They already pay Apple for Google search on the iPhone. So does this mean that Google's revenue may vaporize enough to the point of cutting development of the Android operating system? Could be, at least hinder it. But since Android is now open source it may not matter. It may go the way of Linux and have a hord of computer hacks developing it. This in my opinion would be the demise of the operating system. From my experience with Linux, there are moments of brilliance in a sea of mediocrity, or at least excess complexity. Without a governing driving goal the system will splinter and become a hodgepodge of programs and philosophy. But how will this effect the iOS of Apple? With Apple being the initial leader in this platform, they have an opportunity to steam ahead. With the desktop computer systems, Apple stumbled and never was able to get the message out of the wonderful integration of their OS, and Windows buried them financially. But with the iOS, the cat is out of the bag and people love the simplicity and integration. There is no going back. In the end Apple may thrive even more due to Google's open OS of Android.

No more cash cow?

1 comment:

Macintosha Fanatica said...

An interesting point of view, Stitch! I want to believe exactly what you said! I do wonder if there is a turning point at which Google would be developing the Android system at a loss, and at that point it sure doesn't seem that it would make sense.

I think Android could proceed without Google, but that works to Apple's advantage as a software company that makes outstanding hardware to complement the software.

The folks I've spoken to are happy with Android, but that will only happen if Google is supporting the platform with its software engineering expertise.

I hope you're right!