Monday, November 7, 2011

One trick pony

Some people think that Google is a technology company. Some think that it's a search company. The truth is that it's neither. Google is the worlds most successful advertising company and the vast majority of its profits comes from just two products, AdWords and AdSense. All the rest - Maps, Streetview, Earth, Books, Docs, Android, Chrome, Picasa, TV, YouTube, etc, etc, etc, etc, etc is belly button fluff.

Google acquired Android as a defensive strategy to cover the bases and be able to offer advertising revenues from mobile search. In doing this we're led to believe that Eric Schmidt double-crossed the Apple Board and Steve Jobs. How do Apple respond? Litigation yes, but also product acquisituion. Siri for voice cuts Google out of the search equations and C3 3D maps will cut Google Maps from iOS.

Apple's blanket refusal to negotiate its iPhone/iPad intellectual property and patents to Android maybe high risk but if it comes off we may be wondering where Google will be in ten years time.

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