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Bias against Google? I love their products! I Use their Search Engine. I Buy Products from their Ads. I Use their gmail client all day long - happy to get d

Bias against Google? I love their products! I Use their Search Engine. I Buy Products from their Ads. I Use their gmail client all day long - happy to get directed ads. Use their Map Client. I love all the free stuff I get from Google. Their latest GoogleVoice App is amazing - if anything, I have a huge bias for google. It's okay to be analytical about something you love. Apple makes money on hardware. Google makes money on services. Each have different business models, and will price their products accordingly.

bduerst 14y ago
Then why are you ranting about the default search engine as evidence of adverts in Android?
- ghshephard 14y ago
  Apologies if I appeared to be ranting. My objective was to emphasize that the entire business objective of Android, an operating environment that Google has spent billions of of dollars developing and protecting, is to provide a platform for Google's advertising in search, in maps, and, soon, in voice. Because Google gets little, if any profit from hardware sales, and no (to my knowledge) license fee's from third-parties vendors, all of their profit has to come in the form of advertising. What this means, is that when comparing a hardware product from Google, and from Apple - we need to understand that Google's profit comes downstream from the advertising revenue, whereas the bulk of Apple's come's front loaded, from the hardware sale. This will then have an impact on the margins that each of the organizations will be required to pursue at various stages of the product lifecycle. Apple will start off with a high (30-40%) margin up front, but has less pressure to monetize the user eyeballs in its services. Google will start off with a lower (approaching 0%) margin up front, but then has much more pressure to monetize user eyeballs in its services. Neither business model is inherently good/bad/otherwise, but you case see how the incentives for Apple and Google are differently aligned - we've already identified one - Apple did not release Siri on the iPhone 4, even though the phone was more than adequate to run Google Voice, which was release for the iPhone 4. Google's got no skin in the game selling you more hardware. Apple isn't really incentivized to release it's premium services on old hardware...

bduerst 14y ago

Then why are you ranting about the default search engine as evidence of adverts in Android?

ghshephard 14y ago
Apologies if I appeared to be ranting. My objective was to emphasize that the entire business objective of Android, an operating environment that Google has spent billions of of dollars developing and protecting, is to provide a platform for Google's advertising in search, in maps, and, soon, in voice. Because Google gets little, if any profit from hardware sales, and no (to my knowledge) license fee's from third-parties vendors, all of their profit has to come in the form of advertising. What this means, is that when comparing a hardware product from Google, and from Apple - we need to understand that Google's profit comes downstream from the advertising revenue, whereas the bulk of Apple's come's front loaded, from the hardware sale. This will then have an impact on the margins that each of the organizations will be required to pursue at various stages of the product lifecycle. Apple will start off with a high (30-40%) margin up front, but has less pressure to monetize the user eyeballs in its services. Google will start off with a lower (approaching 0%) margin up front, but then has much more pressure to monetize user eyeballs in its services. Neither business model is inherently good/bad/otherwise, but you case see how the incentives for Apple and Google are differently aligned - we've already identified one - Apple did not release Siri on the iPhone 4, even though the phone was more than adequate to run Google Voice, which was release for the iPhone 4. Google's got no skin in the game selling you more hardware. Apple isn't really incentivized to release it's premium services on old hardware...