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Ian Al is 100 percent correct | 523 comments | Create New Account
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Ian Al is 100 percent correct
Authored by: symbolset on Friday, July 19 2013 @ 11:35 PM EDT

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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