DigitalFriend Blog

August 2011

Google Goes Hardware

Tue, 23 Aug 2011 00:49:09 +1000

By: gosh'at' (Steve Goschnick)

The purchase of Motorola Mobile by Google for $12.5 billion US is a resounding 'Yes!' for Indie Developers and Content Producers - because it puts Google in the business of making money from hardware, which wasn't previously the case. Before, they were entirely focused on their advertising revenue - but now/soon, they have 19,000 new employees who are dependent on hardware sales too. Independent, inexpensive commercial 3rd party software and content, sells hardware - just look at the symbiotic relationship between Apple's iOS devices and the 3rd party app market in their App Store and now their iBook Store too - which Microsoft and now Google are keen to emulate.

The only people objecting (very vocally) to Apples App Store's 30% take are the big publisher's (and people/propagandists high up their food chain). Big publishers didn't pay anyone as much as 30% - until the App Store - so they seriously hate paying 30% to Apple. Little indie developers and content publishers never got as much as 70% from such a mass-market channel before the App Store, so they are quite happy to pay 30% to Apple (e.g. authors of books used to get 7 to 10% from publishers, nowhere near 70%). Google's interest in taking only a 5% fee from their Chrome Store via their web browser (vs 30% in App Store and Android Market) ought to be viewed in the light that their primary business model is Advertising within content that is 'as close to free as possible' - that's certainly not an Indie Developer-friendly avenue, unless they step into line and gather some revenue via in-app advertising. More power to Apple and the Indie Developers they are positively encouraging. And now, more power to Google+Motorola Mobile+AndroidMarket too, for the same reason. And ditto re Windows Phone 7 OS on Nokia.

Personally, I will start to publish commercial quality software for Android again, whereas before this Motorola deal was on the table, we saw Android as little more than a test-market for technical innovation and market research (for apps ultimately destined for Apples App Store and Windows Phone 7) via short-term freebee beta tests - in a market littered with pirates and advertisements. Now, Android Market can become a better place for all legitimately concerned.



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