Google taking Nexus smartphone program in more iPhone-like direction - report

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Google is hoping to exert more control over its Nexus smartphone line, more closely following a business model set out by Apple and the iPhone, a report said on Monday.




While Nexus phones are currently marketed under the Google name -- featuring pure versions of Android -- the hardware is designed by partners like LG and Huawei, who in exchange get to place their branding on the devices as well. People within Google are signaling a desire to treat hardware makers similarly to how Apple treats iPhone suppliers, according to The Information.

CEO Sundar Pichai is allegedly hinting that future Nexus devices might only have Google's name on them. The idea is said to be creating consternation at HTC, which is in talks for a possible 2016 Nexus device. While the company would likely make money from a new Nexus deal, losing branding could hurt name recognition.

Google is meanwhile pursuing other tactics akin to Apple, such as trying to boost Nexus marketing budgets. Nexus phones have typically been treated only as showcase devices -- illustrating the potential of Android software and hardware -- but marketing budgets have been growing, even if the Nexus 6P and 5X reportedly didn't meet Google's more optimistic goals.

The company is said to keep about 15 percent of the revenue of Nexus phone sales, and handle online sales in the devices' top 10 markets. Because of the line's deliberately low profit margins, hardware makers are already shifting most marketing duties over to Google.

The company could theoretically choose to bring phone design in-house, since it's already reportedly micromanaging hardware details. That would solve what's believed to be a long-running fear at Google that Apple might one day limit its ability to generate money from iOS users -- although Android is the world's most popular smartphone platform, Google is thought to be making most of its mobile revenue from ads and services targeting Apple product owners.

Obstacles might include the need to dramatically ramp up product advertising, and opposition from existing Android phone makers, who might lose sales.
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Comments

  • Reply 1 of 41
    nolamacguynolamacguy Posts: 4,758member
    i see the LG nexus has a camera bump. was there mass hysteria?

    i saw the other one pictured in a tv commercial...its stylings are definite echos of an iphone, right down to the chamfered fingerprint scanner ring. pathetic.
    iqatedo
  • Reply 2 of 41
    koopkoop Posts: 337member
    You've got to be kidding me. The Nexus 6P looks nothing like an iPhone. I've owned both phones. 

    nolamacguy said:
    i see the LG nexus has a camera bump. was there mass hysteria?

    i saw the other one pictured in a tv commercial...its stylings are definite echos of an iphone, right down to the chamfered fingerprint scanner ring. pathetic.

    FedGoatstaticx57gatorguy
  • Reply 3 of 41
    jdnc123jdnc123 Posts: 233member
    Well, it was fun while it lasted, but starting tomorrow, Apple will no longer be the most valuable company in the world after Google beat earnings and the stock is up $50+ after-hours, if it holds.  No lamenting the global economy, or currency or any other lame excuses, they just keep growing earnings.  Vision and execution is trumping a huge void of vision and a whole heck of a lot of stubbing their own toes at Apple.  Best Tim Cook could do was blame the macro environment.  Good companies just execute.

    Edit:  Google +$70 dollar now, it'll be a tens of billions gap starting tomorrow, but wont even be close at to who is the biggest and baddest company in the world soon with Cook leading Apple.
    jackansi
  • Reply 4 of 41
    calicali Posts: 3,495member
    i see the LG nexus has a camera bump. was there mass hysteria?

    i saw the other one pictured in a tv commercial...its stylings are definite echos of an iphone, right down to the chamfered fingerprint scanner ring. pathetic.
    The phone also bends if you put a lot of force on it. Mass hysteria?

    koop said:
    You've got to be kidding me. The Nexus 6P looks nothing like an iPhone. I've owned both phones. 

    nolamacguy said:
    i see the LG nexus has a camera bump. was there mass hysteria?

    i saw the other one pictured in a tv commercial...its stylings are definite echos of an iphone, right down to the chamfered fingerprint scanner ring. pathetic.

    That iPhoney has ZERO originality. F*** off, I haven't seen an original phone since the iPhone(2007). How old are you 12?


    Looks "nothing like an iPhone"....
    edited February 2016 nolamacguyiqatedo
  • Reply 5 of 41
    There can be only one business model like Apple's, and Apple owns it.
    palomineiqatedocornchip
  • Reply 6 of 41
    Aha. Now we see another important reason why Apple doesn't boot Google from its list of search engines on iOS. It's because they would go straight to making their own in-house phones. Well, then again it looks like they may do it anyway. Hope Apple kicks them to the curb.
    cornchip
  • Reply 7 of 41
    cali said:
    i see the LG nexus has a camera bump. was there mass hysteria?

    i saw the other one pictured in a tv commercial...its stylings are definite echos of an iphone, right down to the chamfered fingerprint scanner ring. pathetic.
    The phone also bends if you put a lot of force on it. Mass hysteria?

    That iPhoney has ZERO originality. F*** off, I haven't seen an original phone since the iPhone(2007). How old are you 12?


    Looks "nothing like an iPhone"....
    those 2 phones couldn't look less alike. F off. all phones are rectangle and have a screen. from there, they are COMPLETELY different. A blind idiot could see that. there is one phone that looks like an iPhone, HTC A9.
  • Reply 8 of 41
    jdnc123 said:
    Well, it was fun while it lasted, but starting tomorrow, Apple will no longer be the most valuable company in the world after Google beat earnings and the stock is up $50+ after-hours, if it holds.  No lamenting the global economy, or currency or any other lame excuses, they just keep growing earnings.  Vision and execution is trumping a huge void of vision and a whole heck of a lot of stubbing their own toes at Apple.  Best Tim Cook could do was blame the macro environment.  Good companies just execute.

    Edit:  Google +$70 dollar now, it'll be a tens of billions gap starting tomorrow, but wont even be close at to who is the biggest and baddest company in the world soon with Cook leading Apple.
    Lets see for FY2015 Apple revenue grew 28% YOY. Google was 13.5% Apple grew earnings 35% YOY, Google 16.2%. It's totally misleading to compare Apple's Q1 actuals and Q2 guidance as those two quarters last year were an anomaly, not the norm. I mean my god what company is posting $18B of profit in one quarter? Apple's profit in Q1 2016 was about equal to Google's profit for all of 2015! I'll take Apple's hard numbers over anything else any day. 
    levicornchip
  • Reply 9 of 41
    jdnc123jdnc123 Posts: 233member
    sog35 said:
    palomine said:
    Aha. Now we see another important reason why Apple doesn't boot Google from its list of search engines on iOS. It's because they would go straight to making their own in-house phones. Well, then again it looks like they may do it anyway. Hope Apple kicks them to the curb.
    It sickens me that Apple refuses to fight back.

    They should have stuck it to Google long time ago. Yet Cook is happy with giving Google a ton of wealth by making Google the default search on iOS.

    At the same time Google is trying to kill of Apple's life blood (iPhone sales) by giving Android away for free.  And now Google is serious about building top end hardware.

    Steve Jobs said he would use all of Apple's cash to go thermo-nuclear on Android.
    Yet because Cook continues to allow Google search as the default on iOS devices he has allowed Google to build a castle of gold.
    Cooks is helping the very enemy Jobs swore to destroy.
    The 'Google is bigger than Apple' story is all over the headlines I see right now.  Should be good for employee morale at Apple.  Many likely had a chance to choose between the two companies and the unlucky ones chose to join the company that was $200-300 billion bigger just a short few years ago.  What a historic and epic mistake on their part from a challenge and compensation perspective.  Yippy, talented engineers get to work on making the iPhone marginally better which nobody notices or cares about anymore.

    Seriously, if Tim Cook does a big hoopla event for another incremental design change to the iPhone, he should be replaced.
    jackansi
  • Reply 10 of 41
    maestro64maestro64 Posts: 4,519member

    The problem is Apple suppliers other than Samsung is not a hardware competitor to Apple. Foxconn does not make a phone which they sell under their own name. Just because Google has a bunch of people who are good at micromanaging others does not mean they can actually design something in house. I think Google have lots of smart people but smart people can not always design and build a product and get it to market. Product design organizations like Apple take a set of discipline which I do not believe exist at Google. Google has the current date mentality of it is good enough and it could always be fixed in the next release and the user can find the next set of issue they need to fix.

    Lots of people have not clue what it takes to do what Apple does and ships a high quality product. We all know that Apple gets it wrong from time to time, and how much effort they put in to fix it when we all find a problem.

    If Google tries going down this path it going to cost them that is for sure. SAS modal does not translate well in to the Hardware world of you only get one chance to do it right.

    cornchip
  • Reply 11 of 41
    volcanvolcan Posts: 1,782member
    jdnc123 said:
    The 'Google is bigger than Apple' story is all over the headlines I see right now.  
    Not sure why? According to my financial page:

    GOOG = $518 B
    AAPL = $539 B

    During regular trading GOOG was up 1.22%. AAPL makes 1% moves all the time. Sure GOOG is up about 6% after hours but it is just the stock market. Apple has real tangible products. Google has some ones and zeros, mostly zeros.
    edited February 2016 jony0palomine
  • Reply 12 of 41
    lkrupplkrupp Posts: 6,950member
    jdnc123 said:
    Well, it was fun while it lasted, but starting tomorrow, Apple will no longer be the most valuable company in the world after Google beat earnings and the stock is up $50+ after-hours, if it holds.  No lamenting the global economy, or currency or any other lame excuses, they just keep growing earnings.  Vision and execution is trumping a huge void of vision and a whole heck of a lot of stubbing their own toes at Apple.  Best Tim Cook could do was blame the macro environment.  Good companies just execute.

    Edit:  Google +$70 dollar now, it'll be a tens of billions gap starting tomorrow, but wont even be close at to who is the biggest and baddest company in the world soon with Cook leading Apple.
    And my response will be the exact same thing YOU said when Apple passed up Microsoft and Google to become the most valuable company. YOU and your ilk said, and I paraphrase, “It means nothing. Microsoft and Google are still better than Apple will ever be. Just because Apple is worth more now than Microsoft or Google doesn’t mean its bigger or better. Ha, ha, ha, ha. Apple sux!”

    Yes, YOU and your ilk said those very things when AAPL raced by MSFT and GOOG. Are you now going to say it now does mean something that Google passed up Apple? Really? You are going to say that? And keep a straight face too?
    jony0iqatedocornchip
  • Reply 13 of 41
    jdnc123 said:
    sog35 said:
    It sickens me that Apple refuses to fight back.

    They should have stuck it to Google long time ago. Yet Cook is happy with giving Google a ton of wealth by making Google the default search on iOS.

    At the same time Google is trying to kill of Apple's life blood (iPhone sales) by giving Android away for free.  And now Google is serious about building top end hardware.

    Steve Jobs said he would use all of Apple's cash to go thermo-nuclear on Android.
    Yet because Cook continues to allow Google search as the default on iOS devices he has allowed Google to build a castle of gold.
    Cooks is helping the very enemy Jobs swore to destroy.
    The 'Google is bigger than Apple' story is all over the headlines I see right now.  Should be good for employee morale at Apple.  Many likely had a chance to choose between the two companies and the unlucky ones chose to join the company that was $200-300 billion bigger just a short few years ago.  What a historic and epic mistake on their part from a challenge and compensation perspective.  Yippy, talented engineers get to work on making the iPhone marginally better which nobody notices or cares about anymore.

    Seriously, if Tim Cook does a big hoopla event for another incremental design change to the iPhone, he should be replaced.
    Do you really think Apple employees give a shit whether their company is the most valuable company on a given day? I sure heck hope not. That's what AOL employees were obsessed with in the late 90s. Every employee had a stock ticker on their desktop and were constantly checking the share price. Where is AOL now? Buried inside of Verizon.

    Btw, 90% of Google's revenue still comes from advertising, 80% from Google's own sites. And their "other bets" stuff takes in hardly any revenue but is full of lossss. And yet Apple's the "one trick pony" too dependent on iPhone. Fuck that.
    image
    image
    cornchippatchythepirate
  • Reply 14 of 41
    jdnc123jdnc123 Posts: 233member
    jdnc123 said:
    The 'Google is bigger than Apple' story is all over the headlines I see right now.  Should be good for employee morale at Apple.  Many likely had a chance to choose between the two companies and the unlucky ones chose to join the company that was $200-300 billion bigger just a short few years ago.  What a historic and epic mistake on their part from a challenge and compensation perspective.  Yippy, talented engineers get to work on making the iPhone marginally better which nobody notices or cares about anymore.

    Seriously, if Tim Cook does a big hoopla event for another incremental design change to the iPhone, he should be replaced.
    Do you really think Apple employees give a shit whether their company is the most valuable company on a given day? I sure heck hope not. That's what AOL employees were obsessed with in the late 90s. Every employee had a stock ticker on their desktop and were constantly checking the share price. Where is AOL now? Buried inside of Verizon.

    Btw, 90% of Google's revenue still comes from advertising, 80% from Google's own sites. And their "other bets" stuff takes in hardly any revenue but is full of lossss. And yet Apple's the "one trick pony" too dependent on iPhone. Fuck that.
    image
    image
    UMMM, if they get stock comp, they care like hell.
    jackansipalomine
  • Reply 15 of 41
    lkrupp said:
    jdnc123 said:
    Well, it was fun while it lasted, but starting tomorrow, Apple will no longer be the most valuable company in the world after Google beat earnings and the stock is up $50+ after-hours, if it holds.  No lamenting the global economy, or currency or any other lame excuses, they just keep growing earnings.  Vision and execution is trumping a huge void of vision and a whole heck of a lot of stubbing their own toes at Apple.  Best Tim Cook could do was blame the macro environment.  Good companies just execute.

    Edit:  Google +$70 dollar now, it'll be a tens of billions gap starting tomorrow, but wont even be close at to who is the biggest and baddest company in the world soon with Cook leading Apple.
    And my response will be the exact same thing YOU said when Apple passed up Microsoft and Google to become the most valuable company. YOU and your ilk said, and I paraphrase, “It means nothing. Microsoft and Google are still better than Apple will ever be. Just because Apple is worth more now than Microsoft or Google doesn’t mean its bigger or better. Ha, ha, ha, ha. Apple sux!”

    Yes, YOU and your ilk said those very things when AAPL raced by MSFT and GOOG. Are you now going to say it now does mean something that Google passed up Apple? Really? You are going to say that? And keep a straight face too?
    There has never been a company in the history of the world that has lost as much market cap as Apple in the midst of a broader bull market.  

    FACT.  That is on Apple and Tim Cook.
    palomine
  • Reply 16 of 41
    jdnc123 said:
    Well, it was fun while it lasted, but starting tomorrow, Apple will no longer be the most valuable company in the world after Google beat earnings and the stock is up $50+ after-hours, if it holds.  No lamenting the global economy, or currency or any other lame excuses, they just keep growing earnings.  Vision and execution is trumping a huge void of vision and a whole heck of a lot of stubbing their own toes at Apple.  Best Tim Cook could do was blame the macro environment.  Good companies just execute.

    Edit:  Google +$70 dollar now, it'll be a tens of billions gap starting tomorrow, but wont even be close at to who is the biggest and baddest company in the world soon with Cook leading Apple.
    Google made $4.9bn and other bets made a loss of £3.6bn.  This gives a total net income of £1.3bn.  As soon as everyone sees that Google has just separated the real earnings from the loss earnings the shares will fall.  Apple's income and profit for the quarter was equivalent to Google's for the year.
    jony0palominecornchip
  • Reply 17 of 41
    jdnc123 said:
    Do you really think Apple employees give a shit whether their company is the most valuable company on a given day? I sure heck hope not. That's what AOL employees were obsessed with in the late 90s. Every employee had a stock ticker on their desktop and were constantly checking the share price. Where is AOL now? Buried inside of Verizon.

    Btw, 90% of Google's revenue still comes from advertising, 80% from Google's own sites. And their "other bets" stuff takes in hardly any revenue but is full of lossss. And yet Apple's the "one trick pony" too dependent on iPhone. Fuck that.
    image
    image
    UMMM, if they get stock comp, they care like hell.
    You do realize Apple has had several times during Steve Jobs 2.0 where the stock lost 40-50%? What goes up can go down but can also go back up again. My guess is most Apple employees are concerned about the work they're doing not some market cap horse race. Facebook just passed Exxon Mobile in market cap valuation. Exxon did about $280B in revenue last year, Facebook did $15B. The market is a joke.
    cornchip
  • Reply 18 of 41
    maestro64 said:

    The problem is Apple suppliers other than Samsung is not a hardware competitor to Apple. Foxconn does not make a phone which they sell under their own name. Just because Google has a bunch of people who are good at micromanaging others does not mean they can actually design something in house. I think Google have lots of smart people but smart people can not always design and build a product and get it to market. Product design organizations like Apple take a set of discipline which I do not believe exist at Google. Google has the current date mentality of it is good enough and it could always be fixed in the next release and the user can find the next set of issue they need to fix.

    Lots of people have not clue what it takes to do what Apple does and ships a high quality product. We all know that Apple gets it wrong from time to time, and how much effort they put in to fix it when we all find a problem.

    If Google tries going down this path it going to cost them that is for sure. SAS modal does not translate well in to the Hardware world of you only get one chance to do it right.

    It's sure interesting how Apple is getting knocked for its business model right now yet it's two biggest competitors want to be just like it.
    palomineiqatedocornchip
  • Reply 19 of 41
    jdnc123 said:
    UMMM, if they get stock comp, they care like hell.
    You do realize Apple has had several times during Steve Jobs 2.0 where the stock lost 40-50%? What goes up can go down but can also go back up again. My guess is most Apple employees are concerned about the work they're doing not some market cap horse race. Facebook just passed Exxon Mobile in market cap valuation. Exxon did about $280B in revenue last year, Facebook did $15B. The market is a joke.
    HAHAHAHAHAHA.  Employees don't care about their compensation.  What a utopian work environment Apple has created.  I imagine many dislike Tim Cook for the same reason investors do.  His lack of vision is costing them money.
  • Reply 20 of 41
    jdnc123 said:
    You do realize Apple has had several times during Steve Jobs 2.0 where the stock lost 40-50%? What goes up can go down but can also go back up again. My guess is most Apple employees are concerned about the work they're doing not some market cap horse race. Facebook just passed Exxon Mobile in market cap valuation. Exxon did about $280B in revenue last year, Facebook did $15B. The market is a joke.
    HAHAHAHAHAHA.  Employees don't care about their compensation.  What a utopian work environment Apple has created.  I imagine many dislike Tim Cook for the same reason investors do.  His lack of vision is costing them money.
    You obviously have a reading comprehension, or are just being an ass. Twice under Steve Jobs 2.0 Apple stock lost 40-50% of its value. Should Steve have been fired? Also Apple's market valuation is a joke and my guess is this just motivates employees to prove these clowns wrong. 
    iqatedocornchip
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