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Seeking Alpha: Android is a net negative for Google


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#16 *RedBull*

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Posted 26 December 2012 - 05:48

Neither am I, but they make money right along from them. Same as here, and I rarely click on an ad here.

That's true.


#17 +techbeck

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Posted 26 December 2012 - 17:54

They're not in a bad position *because* of Android. They're in a bad position because they only have one ( over 90% basically) source of income.


Which really is not a bad position in this case. Ads are not going away and are expanding all the time. So this is a constant reliable stream of cash coming in for Google. And Google has ads everywhere, not just on the Android platform. Now if Google's main source of income was the Chrome Book, then that would be a bad position.

#18 Luis Mazza

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Posted 26 December 2012 - 18:13

This is like saying that Apple should never have 'lost' millions if not billions while developing the first unusable iPad prototypes, back in 2004.

LOL

Stay away from this website...

#19 +LogicalApex

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Posted 26 December 2012 - 18:15

This is how Google shot itself in foot: Each additional Android user is likely already a Google user on the desktop, and encouraging them to use Google on their Android phone instead of their Windows desktop simply means downsizing their revenue from desktop ad dollars to mobile pennies. The more their phones are adopted and used, the more they cost to support via Google Play and other services, the less they earn from desktop ads, and the less they feel they need to serve other platforms, which would have earned them money without all the support costs associated with Android. The pyrrhic victory will ultimately end up burning Google’s cash flow. (via wmpoweruser.com)

Link: http://seekingalpha....et-share-part-i


Except this isn't reflective of reality...

Mobile is the key to stronger revenue streams by Google on every platform. In the most basics, mobile increases the amount of information Google has on each individual user. They now have information about where the users travels (via GPS), who they contact (via SMS and Call Logs), what applications they install and use, the content of their EMail (via Gmail), etc. This complete picture allows Google to push up the price of their ads across the board as they are able to sell the advertiser "more relevant clicks" which is all they care about.

So, you're looking at this all backwards.

#20 BajiRav

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Posted 30 December 2012 - 13:18

LOL at people thinking Google is in a bad position because of Android..

They RULE the mobile. The amount of information and everything they have access to is making them boatloads of money that comparing it to whether or not Android costs them something is completely asinine and completely lacks the understanding of what Google is doing in the long run. Mobile ecosystem and advertising and gelocation and so many things are the next desktop. Desktop will be dying out and whether they had Android or not they would lose money.

Balmer would fluff every single executive at Google to be in the same position.

Desktop will be dying? Oh my, how you change your tune when posting in Windows 8 threads!

#21 Richteralan

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Posted 30 December 2012 - 15:42

Just read the first line:

Disclosure: I am long MSFT, INTC, AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


And I stopped right there. Microsoft, Intel and Apple writer?

Can't get more object than that! /s

#22 Boz

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Posted 30 December 2012 - 22:50

Desktop will be dying? Oh my, how you change your tune when posting in Windows 8 threads!


Yep it will.. for most people at least. My dad and many family members have already stopped using desktop computers. They are way too complicated for simple things they need (email, skyping, simple browsing). Desktop won't die but it will be mostly limited to those who actually need it (content producers, programmers, designers etc.. professionals in general).

And since this is inevitably happening, Microsoft's desktop OS dominance will become irrelevant in the big picture.

#23 Deleted Bye

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Posted 30 December 2012 - 23:04

phone marketing for google is an ADDITION to the market, not a minus. Think of it as an extra bonus.

#24 +warwagon

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Posted 31 December 2012 - 19:58

remember gangnam styles 1billion views ? imagine how many people watched an ad for that video ...I think they can afford to lose money if it means dominating a market its the game


That video had ads?

#25 Deleted Bye

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Posted 31 December 2012 - 23:09

That video had ads?

surprised you didn't see them

Posted Image

#26 +warwagon

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Posted 31 December 2012 - 23:10

surprised you didn't see them

Posted Image


Oh those. Ya I just turn those off immediately.

#27 Original Poster

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Posted 01 January 2013 - 16:17

That video had ads?


ha for alot of people who dont use chrome ad blocker ;D

#28 Javik

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Posted 01 January 2013 - 16:22

People that buy Android phones don't just magically ditch their desktop PC's, they just use their phones as an extra Internet surfing tool, usually on the move.