Well, Google does it again with yet another online brilliancy. How do you market a “Google Phone” without paying a dime for hardware development? Engaget is reporting that Google appears more likely to release a mobile OS to multiple phone vendors rather than develop it’s own phone. This is a *really clever* approach because it will allow Google to maintain core competency focus on software and advertising, something that founders appear to think has been lacking lately with the many aquisitions. Also, this will bring market forces to bear to quickly lower the price of iPhone-like mobile devices. How does Google benefit from lower prices on browsing phones? Why, ADVERTISING of course! Ads remain about 98% of Google revenue and mobile ads are arguably the online sector with the most explosive growth potential. Rather than go head to head with the iPhone Google will continue to sing it’s praises and then simply scoop up all the juicy advertising revenues as users demand Googley browsing capabilities on their phones. Vendors may get squeezed by customers to lower prices on the phones but Google still comes out a big ad winner.
No wonder they can throw such a lavish Google Party every year!