"Google isn’t a web application company—they’re an advertising company"

I hear this said a lot, but does it really make sense beyond being a catchy
phrase? Apple has also been described as a marketing company, but while
they're great at marketing, they're also great at hardware design, software,
supply chain management, strategic vision, etc. Likewise, Google is great at
a lot of things.

"Instead, Google’s strategy is to weaken other companies’ businesses (say,
email) by offering something quite good or good enough for free, take over
that market, and then use their new dominant position to rake in advertising
revenue."

One thing that iPhone fans seem to tend to do is paint Google as a company
that turns out mediocre product on a mass scale because Android isn't as
polished as iOS. And yet, Google has produced not just "quite good" but
arguably the best search engine, maps, browser and mail client.

"If users won’t pay for applications, what will developers use to make money
from their applications? Advertising."

I don't really get why Android users would remain so unwilling to buy apps.
If a subsidised high-end Android costs the same as an iPhone, doesn't that
place the user in the same affluent demographic? There may be fewer apps
worth paying for, but that's a different issue. And advertising isn't the
only way to make money: apps like Angry Birds and Hipstamatic offer in-app
purchases.

Moandji

On Thu, Jan 6, 2011 at 8:59 AM, Vorlonswork <[email protected]> wrote:

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