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Will Nexus One Hurt Android?

By Edited Oct 11, 2016 0 0

According to Microsoft, Google's strategy to launch a branded handset will only serve to hurt the success of their mobile phone operating system, Android. They feel that Google will find it difficult to attract partners to use their OS after launching the Nexus One, even if the latter is developed by HTC. Even though Microsoft is Google's main competitor, they may have a point.

Before launching their own handset Google was in the enviable position of being a service provider to all its manufacturing partners with Android, however, Nexus One propels them into a different category, namely that of competitor. And while there are many branded phones that enjoy great popularity, Google has the advantage of being a household name already and the concept that consumers will be able to take advantage of all their services and utilities on their mobile phone without any hiccups will find many purchasing

According to Microsoft, Google's strategy to launch a branded handset will only serve to hurt the success of their mobile phone operating system, Android. They feel that Google will find it difficult to attract partners to use their OS after launching the Nexus One, even if the latter is developed by HTC.

Even though Microsoft is Google's main competitor, they may have a point. Before launching their own handset Google was in the enviable position of being a service provider to all its manufacturing partners with Android, however, Nexus One propels them into a different category, namely that of competitor. And while there are many branded phones that enjoy great popularity, Google has the advantage of being a household name already and the concept that consumers will be able to take advantage of all their services and utilities on their mobile phone without any hiccups will find many purchasing the Nexus One.

Microsoft feels that Google has shown a lack of commitment to their partners and this clears the way for their mobile OS to fill in the gaps as they have little intention of launching a handset themselves. Microsoft claims this is not part of their long term strategy because they are committed to their partners. However, what Microsoft fails to touch upon is that Google distributes its OS free of charge and since it's all about profit margins, it is unlikely we will see too many manufacturers turning away from Android. Certainly not for an OS that may come with a hefty price tag.

Although Microsoft claims that they will not be entering the handset business, they may find themselves forced to do it, especially if they price their OS in the same vein as all their other licenses.

Manufacturers will have to choose between making a higher profit margin with the implementation of Android and dealing with competition from Nexus One, or a lower profit margin but less competition. However, the flaw in this line of thinking is simple to see, the majority of people do not buy a phone because of its operating system so whether they choose Microsoft's OS or opt to remain with Android the competition will still be there. Therefore, rather than paying for an OS, the same funds can be funneled into research to create a better handset.

Understanding their consumers is critical and it seems Google is doing a fine job of balancing their commitments with increasing their market share and expanding into different markets. From a strategic point of view, this is the best thing Google could have done because they are in the position to take advantage of a household name that guarantees the trust of consumers as well as an infinite lateral market to expand into, technology. Don't be surprised if Google announces a desktop OS in the near future to rival Microsoft as the market is ripe for a replacement to Windows, especially one that comes at a much cheaper price tag and is easier to use.

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