Seeking Alpha: Android is a net negative for Google

By GauravAgr
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GauravAgr

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Posted

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

Grand Master

Original Poster

Posted
Posted

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

whats your point ?... android is simply a sub devision of google ... google ads and youtube are the revenue of their company (mostly) ... 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

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GauravAgr

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whats your point ?... android is simply a sub devision of google ... google ads and youtube are the revenue of their company (mostly) ... 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

Company loosing money to gain market share or to even harm a competitor is understandable, but they are loosing bigger amount in one division to earn petty amount from other division.

Grand Master

+Xinok Subscriber²

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Data mining is a huge source of profit these days, and thanks to Android, Google knows more about you than ever. Even if Android wasn't hugely profitable, Google was smart to jump into to mobile world to avoid becoming irrelevant. Microsoft realizes this which is why they're trying to force their way into the mobile realm with Windows 8, putting their flagship product at risk in the hopes of winning big.

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Grand Master

spaceelf

Posted
Posted

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

To me Googles biggest failure is how horsecrap Google Play is.

If I want a book on Android, I go to the Kindle Marketplace. If I want music on Android, I go to Amazon MP3. Google Play wasn't terrible, but it was missing so much.

Every purchase on Google Play earns them money...or would, if stuff was even there.

I sold off my Nexus 7 and got another SSD.

Grand Master

Boz

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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.

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Grand Master

*RedBull*

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And let's not forget all the ads on Android that Google makes momey from.

Let's not forget that I am not motivated to buy anything because of an ad. Especially intrusive ads.

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rfirth

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A very neutral source we have here....

Seeking Alpha? What's not neutral about them? It's a website for investors. Where else would you suggest we look for information about Google's financials?

Proficient

szo

Posted
Posted

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

Yes ad impressions earn them money and it doesn't matter if you don't buy! Furthermore, not everyone can afford two things such as a computer and a cellphone. The easiest and cheapest way to get people online is through mobile and google dominates that too with youtube, maps, search, and email! The next billion people to get online are more likely to get online via mobile than on a desktop. Also because android is everywhere even with cheaper models and cheaper tablets and people have access to everything they basically need such as surfing, facebook, pictures, youtube and general usage. A computer is overkill for many people who just use it for very basic typical fun use especially senior citizens, uneducated people and kids.

Grand Master

techbeck

Posted
Posted

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.

Grand Master

+LogicalApex MVC

Posted
  • MVC
Posted

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.

Grand Master

BajiRav

Posted
Posted

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!

Veteran

Richteralan

Posted
Posted

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

Grand Master

Boz

Posted
Posted

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.

Grand Master

+Warwagon MVC

Posted
  • MVC
Posted

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?

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