The Orange View (on hiatus) Because Apple is great but it isn't perfect


Google shares app money with carriers, Apple not so much

Head right on over to Wired and read Fred Vogelstein's behind-the-scenes look at how Android succeeded. Just one point of emphasis from me -- Android and Google give carriers an incentive to provide a better mobile Internet experience and Apple does not.

The iPhone, revolutionary as it was, didn’t alter one underlying dynamic: Phone manufacturers—who wanted to make the most capable, feature-rich phones—were still at odds with the carriers that provide the pricey bandwidth to power those features. That had led to conflict between Apple and its carrier partners, especially AT&T. Apple wanted users to take full advantage of the iPhone’s capabilities, but carriers then had to spend billions to keep up with the demand on their overtaxed networks. Android finally rewrote that calculus. Because carriers get a cut of app sales and ad revenue, they stand to make money when subscribers surf the web or download applications. For once, the interests of software designers, manufacturers, carriers, and customers are all aligned.

-Wired, April 14, 2011

Posted by Aaron Pressman

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  1. Just another example of Google not having strong enough leverage to cut a good deal. Giving away a cut of App sales to carriers is not good business. It is desperate business.

    Google’s results Friday point to a company without good ideas. They had to increase sales & marketing expenses 69% to grow the top line 27%. They had to increase R&D spending 50% to further their quest of copying Apple, Facebook, etc.

    Let’s face it, engineers and scientists are not good businessmen. Google is a 1 hit wonder. Apple will keep on chugging and you can bet that HP will be chomping at Android as will the MSFT/Nokia partnership. Android has no loyalty. The vast majority of Android users only selected it because iPhone was not available on their carrier of choice.

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