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Google Does Not Sell Phones – It Sell Ads

February 13, 2010

I read this story and was a little baffled by it’s premiss. I think is misreads the situation to suggest a problem for Google that simply does not exist;

Google’s plans to take on the iPhone are running into problems in Europe as several mobile phone companies plan to sell a cheaper version within weeks of the internet company’s Nexus One device going on sale. Even Vodafone, which Google has signed up to provide network access for the Nexus One, is expected to sell the cheaper device online and through its own stores. The rival device, codenamed the Bravo, is made by Taiwanese handset manufacturer HTC, which also makes the Nexus One. Both mobile phones have the latest version of Google’s Android mobile phone software installed.

This is where I have the issue with the story – that last sentence says it all; Both mobile phones have the latest version of Google’s Android mobile phone software installed. Google makes around 97% of it’s huge income from context driven ads placed next to searches. The Android operating system it has developed is open source and free to the handset manufactures. This is what it wants; for phones t use it’s OS which come with it’s search enabled. It’s Nexus phones are intended to stimulate the market for Android, not to take control of it. It is making sure it moves to the mobile platforms as we do. Simple.

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