Commentary

The Android Monopoly and how to harness it

From an underdog to ubiquitous manufacturer support, the Android platform has come a long way since its introduction in 2008. Almost every single device vendor (except for Apple and Nokia) has launched Android devices, while Sony Ericsson and Motorola are betting their margins and future on it. The phenomenal rally behind Android is – in a nutshell – due to 4 factors: the operator demand for a cheaper iPhone, the burgeoning Android developer community, Android’s market readiness (3 months to launch a new handset) and the ability to differentiate on top of the platform.

A monopolist on the rise? – Year after year, Android keeps on surprising industry pundits. Google’s software platform saw 100% quarter-on-quarter increase in the first 3 quarters of 2010. The last quarter of 2010 saw Android go chest-to-chest with Nokia in terms of smartphone shipments, in what CEO Stephen Elop called ‘unbelievable’. With such meteoric rise, analysts are beginning to talk about a potential Android monopoly in the future market of smartphones, contested only by the Nokia-backed Windows Phone.

The Google commoditization endgame – Is Google the biggest benefactor the industry has seen? Not by a long way.

Google runs a hugely successful advertising business and needs to bring as many eyeballs as it can onto its ad network. To this end, Google’s agenda is to commoditise handsets by forcing smartphone prices down (see our analysis on the $100 Android phone) and having its ad network deployed on the broadest possible number of smartphones (via closed apps like GMaps and Gmail).

Moreover, Google’s agenda is to commoditise mobile networks by flattening the mobile termination barriers and removing volume-based price plans that telcos have traditionally built. At a 10,000 ft level, Google’s strategy is based on deceptively simple microeconomics principle; to drive up the value of its core business (ad network) it needs to commoditise the complements (devices, networks and browsers). Continue reading….

Related Posts

“Who Has Your Back?” In Depth: Which Companies Promise To Tell Users About Gov... EFF recently launched a campaign calling on companies to stand with their users when the government comes looking for data. (If you haven’t done so...
Wikileaks Mirror Taken Down: Host Buckles Under Demands from Upstream Provider Wikileaks isn't the only site struggling to stay up these days because service providers are pulling their support. It appears that at least one perso...
Is the Wuala cloud storage service truly private? Wuala is a cloud storage service by LaCie, a computer storage and display outfit. Like all cloud storage services, Wuala makes it easy for you to back...
Some File-Sharers Leave Trails To Their Front Door Following the publication of a paper which investigates how using the same username across multiple web sites may expose Internet users to scammers, T...
Copyright Is Like QWERTY: Locked-In and Retrospective The term ‘path dependence’ is generally used to describe the development of technological standards and how they ‘lock in’ a given technical solution....
Tracking Protection Lists: A privacy enhancing technology that complements Do Not Track Yesterday, Microsoft released version 9 of Internet Explorer, which includes two significant new privacy features: Tracking Protection Lists (TPLs) an...

We Recommend These Vendors and Free Offers

Launch an SSD VPS in Europe, USA, Asia & Australia on Vultr's KVM-based Cloud platform starting at $5:00/month (15 GB SSD, 768 MB of RAM).

Deploy an SSD Cloud server in 55 seconds on DigitalOcean. Built for developers and starting at $5:00/month (20 GB SSD, 512 MB of RAM).

Want to become an expert ethical hacker and penetration tester? Request your free video training course of Online Penetration Testing and Ethical Hacking

Whether you're new to Linux or are a Linux guru, you can learn a lot more about the Linux kernel by requesting your free ebook of Linux Kernel In A Nutshell.


2 Comments

  1. dzięki takie wyłączaniu reklam na stronach doczekam sie tego ze będą płatne strony np smsem gdyż właścicielom stron nie będzie sie opłacało robić stronek bo jak każdy będzie blokował reklamy właściciele stron nie beda nic zarabiać. Ludzie zrozumcie to ze dlatego macie za darmo dostęp do stron bo sa na nich reklamy i to włsni na reklamach zarabiają ci którzy maja strony !!!

  2. Pingback: Tweets that mention The Android Monopoly and how to harness it -- Topsy.com

Leave a Comment

Your email address will not be published. Required fields are marked *

*