Google taking Nexus smartphone program in more iPhone-like direction - report
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.
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.
Comments
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.
nolamacguy said:
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.
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"....
Seriously, if Tim Cook does a big hoopla event for another incremental design change to the iPhone, he should be replaced.
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.
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.
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?
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.
FACT. That is on Apple and Tim Cook.