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Microsoft's Proposition: Bundle our OS, and you can join the rest of the hardware pack in a race to the thinnest margins and the most undifferentiated offerings

Microsoft's Proposition: Bundle our OS, and you can join the rest of the hardware pack in a race to the thinnest margins and the most undifferentiated offerings, while we get rich taxing every unit you sell. Google's Proposition: Bundle our OS, and you can join the rest of the hardware pack in a race to the thinnest margins and the most undifferentiated offerings, while we get rich advertising to (y)our user base. HP has figured out that even though Android is "free," bundling Android with their hardware is the same business model as bundling Windows.

Kylekramer 16y ago
I'm pretty sure every hardware maker realize that, but they also realize that is what won last time. Everyone wants to roll their own, but that is a risky venture (Palm couldn't hack it). Hitching your wagon to Windows/Android is better than going on your own and failing miserably.
- potatolicious 16y ago
  It's that or be sidelined as a commodity hardware manufacturer, though. Despite Samsung, HTC, Moto et al's best efforts (Sense UI and other things they've been tacking onto their Android devices), it's pretty clear that the UX is driven by Google. This handicaps (if not virtually eliminates) their ability to differentiate and brand their products. After all, the only real difference between a Samsung and HTC is hardware - few people care about the custom bits on top. Also, I don't think you give Palm enough credit. webOS is a solid product that had a solid enough launch. If Palm hadn't run out of cash, and their marketing wasn't so ass-backwards, they might've stood a chance. IMHO with a bottomless moneypit like HP backing them, they can put up a real fight.
  - bergie 16y ago
    The level of differentiation seems to be very small on Android indeed. It looks like almost every week there is the "new hot Android superphone" that reigns supreme, only to be surpassed a week later when the next phone comes out from another Asian manufacturer packing in yet another processor core.
ZeroGravitas 16y ago
Google is going to be making money from advertising to HP (and everybody else)'s customers anyway, unless they've got alternatives for Youtube, Gmail, Google Nav, Google Ads and Google Search cooking in the labs. This even applies to Apple though they've made tentative steps in some of those areas.

Kylekramer 16y ago

I'm pretty sure every hardware maker realize that, but they also realize that is what won last time. Everyone wants to roll their own, but that is a risky venture (Palm couldn't hack it). Hitching your wagon to Windows/Android is better than going on your own and failing miserably.

potatolicious 16y ago
It's that or be sidelined as a commodity hardware manufacturer, though. Despite Samsung, HTC, Moto et al's best efforts (Sense UI and other things they've been tacking onto their Android devices), it's pretty clear that the UX is driven by Google. This handicaps (if not virtually eliminates) their ability to differentiate and brand their products. After all, the only real difference between a Samsung and HTC is hardware - few people care about the custom bits on top. Also, I don't think you give Palm enough credit. webOS is a solid product that had a solid enough launch. If Palm hadn't run out of cash, and their marketing wasn't so ass-backwards, they might've stood a chance. IMHO with a bottomless moneypit like HP backing them, they can put up a real fight.
- bergie 16y ago
  The level of differentiation seems to be very small on Android indeed. It looks like almost every week there is the "new hot Android superphone" that reigns supreme, only to be surpassed a week later when the next phone comes out from another Asian manufacturer packing in yet another processor core.

ZeroGravitas 16y ago

Google is going to be making money from advertising to HP (and everybody else)'s customers anyway, unless they've got alternatives for Youtube, Gmail, Google Nav, Google Ads and Google Search cooking in the labs. This even applies to Apple though they've made tentative steps in some of those areas.