For Google the purpose of Android is not to rule the mobile world - that was
entirely accidental. Its purpose is to prevent an existential risk: that the
use of mobile devices could transition to a new platform where Google could be
prevented from reaching their customers. The idea being not to force-feed
Google services, but just to ensure that there is a platform that Google
services can be found on. As things turned out, this was a real and remains a
present danger.
With search exclusivity deals mobile providers and platform
vendors always would and could and did lock Google out of search in mobile and
they could get away with it because their systems were not open. Naturally this
was undesirable for Google. As we see with Apple's Siri Bing search deal even
Apple can be induced to force users into the use of a search engine they do not
prefer. As Verizon found when offering Binged phones, many customers will turn
away from a phone carrier rather than be forced to give up Google services, and
they will return as broken a smartphone that cannot Google. Apple may discover
their customers equally stubborn.
As for the thermonuclear war thing, I don't
think it's relevant here.
Google is faced with a well-funded competitor
willing to lose billions of dollars a year and engage in various nefarious
tactics - some few of which are mentioned in this fine article, but not anywhere
near all - for one purpose: to kill Google. Not to successfully compete in the
marketplace, not to sell more products, make more profits, delight more
customers, build a valuable ecosystem for later exploitation. No, Microsoft's
goal online is just to kill Google. At last report their Online Services
Division has accumulated a deficit of about $17 billion pursuing that one
goal since 2007, including acquisitions.
Today Microsoft disclosed that they
had to write down $900 million to cover the decreased value of inventory of
Surface RT units by $150 each. That equates to 6 million unsold units.
Microsoft's stock fell 12% on the day - the most since the Y2k .bomb crash - not
because with $77 billion in cash they can't afford a billion dollar slip
here and there. Not because obviously they aren't going to sell the units at
this price either and will have to write off much of the remainder of the
inventory. Not because of fears Surface Pro will follow the same path. The
stock crashed because the Surface RT is supposed to deal with the exact same
existential risk and obviously failed. Analysts agree that Microsoft will
continue to make these bold risks because they have no choice in the matter, and
that they appear to have no solution to this problem either. They are losing
control of the platform as it transitions to mobile and their products can be
excluded if they do not regain control.
Of course, that is also what
FairSearch, the various patent lawsuits both direct, partnered and puppet are
about. [ Reply to This | Parent | # ]
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