Quote:
Originally Posted by
maccherry 
Google is a joke. They are living off of an algorithm by Brin and Page.
Moreover, Google pays Apple 100 million a year to carry their freaking search! WTF!
So, how is Google competing with Apple when they are greasing their pockets with that much cash?
Google pays Apple big bank for Google search I wouldn't doubt it one bit.
I use Apple products by choice. Personally, I also prefer Apple;s "walled garden" if that helps minimize malware, and I have to minimize the time spent to find a gem, among a mountain of choices. Thus, I am more than likely to always prefer Apple over any Google phone, even if Google were to become dominant in the mobile computing devices. Just to get that straight.
However, it is comments like this that indicate how many Apple fans do not fully understand Google's business strategy.
First. It is Apple that is too dependent on Google - Google Search, Maps, You Tube (video), and Google is willing to collaborate with Apple because it is good for Google's strategy.
By the iPhone OS mobile devices using Google Search, it just continued the expansion of Google's domination over other Search engines. This happens to be the main source of income of Google and it also entrenched its Google Ads business. 100 million is pittannce, if in the process, you are earning 200 million or 500 million, in return. In fact, Google pays every browser company that uses its Search engine. Google Search is the bloodline of open source browser, Firefox.
The greater danger is that by cornering almost of all of the mobile Search business, except perhaps those few that use MS Bing Search (are there any using Yahoo?), Google has imprinted to teh minds of mobile gadget users that it is Google Search is also the
de facto Search Engine in mobile computing devices.
This is the case also with Maps and You Tube.
As John Gruber mulled, Google at one point can exist without Apple (just like Google survived when Yahoo stopped using Google Search), but Apple will be terribly crippled if Google do decide to make some of its products not the fully compatible, not as much feature rich, or slow when used in Apple devices.
Microsoft did this to Apple. While Microsoft sold MS Office for the Mac, the update is not as often, or the latest version is not as rich as the Windows equivalent. AppleWorks did exist then but was neglected by Apple, MS Office was much better and became the
de facto software for almost all computing devices, except for the "few rounding number" using other comparable software.
The legacy of this is that until now, in spite of an improved "Office" software by Apple *iWorks)
The same is true with Internet Explorer. In fact, at some point, MS simply stopped creating the IE for Apple. Sure Apple created Safari because of the action of the decision of Microsoft. Again, the legacy here is that, in PCs, IE is the de facto browser, even if its share is decreasing.
Apple in a sense is trying to gain some control in the mobile computing devices that are part of the iPhone OS ecosystem, in terms of Safari browser. It should do the same for Search, Maps but Apple has no comparable answer to You Tube. Sure Apple has bought a start up Maps company, and a Search start that it would prefer to call an AI (Artificial Intelligence) company.
Whatever it is , Apple is taking its time in developing these assets. That is good in a way to create a better alternative.
However, in my opinion, unlike other competitions, Apple may have found a viable competitor with Google, and with deep pockets, like Apple and Microsoft. Unlike other competitors, like Motorola, Nokia, RIM, Google is also known for its research. Or at least, Google was astute enough to buy acquisitions that strengthened its core business -- advertisements.
Steve Jobs cried foul that Google encrouched on its business. Such charges obviously is true, and fired up the Apple loyalist and created more publicity. But, let's face it, a business goal is to ensure its survival and profitability.
If it means encrouching on other's turf. That's business. Fight back, if you are a business.
Licensing your creation worked for Microsoft in the PC industry. Sure, MS used its clout to maintain its dominance. But, at the end of the day, Microsoft won the war in the PC industry.
Google believes it can do that same strategy and much better than Microsoft by using "open source" sharing of its creations -- Chrome, Android, etc. Why? Because it is free, more companies are likely to adopt these OS than proprietary OS, like Windows Phone 7. To support this, the share of Windows Mobile is declining while Android is growing in accelerated rate.
It is not a certainty, but if trends will continue, it is possible that Android can overtake the iPhone. Many Apple loyalist denigrate that some Androids were not as good as the iPhone, the Apps Store is much more ahead in terms of Apps, and has no equivalent in the Android ecosystem.
That is true, but historically the same charges were the response to growing car and electronics products of Japan. They were all copy-cat products based from Western technology. The West understimated Japan's technological prowess in the 60's but before the West realized, Japan became dominant in both the electornics industry, especially household products and entertainment, and became a poweerful competitor in car manufacturing. In fact, Japan automakers are far ahead in the most advanced cars in terms of energy conservation.
[China, Taiwan, South Korea are having similar increasing successes, but that is another thread.]
The point here is that Apple loyalist must not understimate Google but judging the state of its competing technologies. These technologies are improving, even a number of Apple bloggers and more independent tech analysts have indicated that the Android is ahead of the iPhone OS, in some areas, but the more experienced Apple iPhone users still prefer the iPhone.
The question now would be how the masses would react to a much more improved Google Ecosystem? How will it affect the dynamics if Android and the entire Google ecosystem, Search, Maps, Email, Social Networking, Video (You Tube), telephony, cloud computing, etc. becomes a true formidable competitor, or even overtake Apple, in the phone industry?
What Apple should do, is to understand and find ways to address the Google competition and the evolving Google Ecosystem. If Google succeeded in having many of the phone manufacturers to produce Android phone, improve its content delivery (Apps, music, books, mass media, etc.), these aspects of the Google Ecosystem would be formidable addition to that part of the ecoystem where it is already dominant -Search, Maps, You Tube video. More than likely, the films and TV and other video industries may attempt to provide preferential treatment to Google, if only for the Google to serve as a means for the mass media companies to have better negotiating position when it deals with Apple. The book and news-magazine industry did the same strategy to unlock the stranglehold of Amazon.
The silver lining in all these is that indeed Apple is trying to do this. For example, the WWDC next week is dedicated mainly to the iPhone OS because Apple correctly understood that the most contested competition with Google is the mobile computing market. Similarly, Apple has entered the iAds, to thwart the complete domination of Google in the growing mobile computing market.
Apple should do more though, and perhaps at a faster pace.
There are many ifs in the aforementioned speculation, and it will dictate the outcome. The most unpredictable among these in the response of the target consumers.
At least, in the past decade, Apple so far had the upperhand in creating products that resonated to consumers -- of all ages, and to an extent, economic strata, especially in the digital music.
CGC
