Does Android need Google?

June 9 2012, 1:40 PM  by The Head

Because of the way that the mobile industry has sort of shaped up, we tend to look at the operating systems and their creators as being one and the same. There is no iOS without Apple, no Windows Phone without Microsoft, no Blackberry OS without RIM... The ecosystem is lumped in with the tech giant behind it, to the point that they are one and the same in regards to public perception (something that is generally an advantage to the likes of Apple, but has become an increasing disadvantage in the case of RIM). 

These companies are the "creators" of our favourite mobile operating systems; they maintain it, provide it with content, access to content, and relevant tools to further satisfy our needs. And naturally they take a nice slice of the pie as well, which makes a degree of sense. These companies are coming up with new and inventive ways to monetize their platforms, and further rule the roost of digital purchasing. The golden path has just gotten bigger and bigger. Apple launched the iPhone without even an App Store. And since then have expanded into books, magazines, a full portal for all media, in app content purchases,etc... Others, like Microsoft and RIM have followed suit.

That being said, the one item missing from all of this is the internet juggernaut, Google, along with their Android platform. They have clearly been a dominant force in the mobile sector. Android is the number one mobile OS sold in the United States. Their user base is massive. Their ability to corner a market and dominate it is unparalleled. They have offerings in regards to apps, books, movies, media, etc that rival Apple almost every step of the way. Google has hammered their way into the mobile space and done so with authority. Android is huge. Android is everywhere. Android is so adaptable, that we may have only scratched the surface of what can be done with it.

But... Does it need Google? The side effect of going with an Open Source model is that it becomes free for others to use, play with, modify and deploy. Freely. Now, there are a few caveats of course. Google requires a specific agreement with a manufacturer in order to use and include some bits of proprietary software. So yes, while Android is open source, things like the Play Store and he Gmail app are not. They require a separate agreement that requires the manufacturer to agree to certain terms. This leaves Google with some measure of control in regards to Android handsets. And by and large, it has been successful. But... is it needed?

While there have been some holdouts (particularly in Asia) when it comes to these core Google items, all of the Western manufacturers have pushed out their devices with the Google stamp of approval. Since Google houses the content, it makes sense. People won't want an Android device if they cannot easily install all of those amazing apps their friends show them. So the manufacturers agree to terms, make their devices, Google gets it's slice of app purchase action (30% per transaction) and everyone is happy. Now, Apple and RIM don't license their software, so it's a bit of a non issue for them. Microsoft does license Windows Phone 7, but it is not an open system. There is no other option that the Windows Marketplace. But with Android, that's not necessarily the case.

For example, Amazon has it's own app market. It may not quite match the Play Store in terms of apps just yet, but it does have the ability to leverage Amazon's massive catalog of other media. Amazon then used it exclusively with the launch of their Android powered Kindle Fire tablet. The low cost tablet that has been the biggest selling Android tablet to date. So yes, the Android tablet that is the most used in the United States isn't equipped with the Play Store, and does not directly generate any revenue for Google.

Now, that system is not perfect. The Amazon App Store (along with the Kindle Fire) are US exclusive. That doesn't really help users in the rest of the world. But it does set a precedent that it is possible to be Android powered and have a successful product, but not work directly with Google. This could be very important in the future. With Google purchasing Motorola, I'm sure that a lot of manufacturing partners are raising eyebrows and feeling a fair bit of concern over the whole situation. Google has publicly stated that the two entities will be completely separate, but again, perception warps reality.

The other interesting thing to note, is the success that Samsung has had with Android. Success might actually be too mild a word. Dominance might be a better fit. In the Android landscape, Samsung accounts for more than 50% of handsets sold. They are really the only Android manufacturer that is demonstrating true profits through the sale of Android handsets. They are the only ones that can have a true launch event when releasing a new flagship phone. They are the top dogs of the Android universe. And with the Google/Motorola shenanigans, they have to be wondering: "Do we need Google?"

A very strong argument could be made that they do not. That they could go another route such as creating their own app and content stores, pairing with Amazon, or looking into another third party solution. They could conceivably decide to renegotiate the terms with Google so that they are more favourable to Samsung. They could leverage their success to completely change the playing field.

The word "fragmentation" is used in regards to Android an awful lot, and while the idea behind it is clear, it has been completely accurate. What the future holds though, could indeed be an example of true fragmentation. We may be seeing true differences in the Android ecosystem, with manufacturers truly splitting from one another with different solutions, and the execution resulting in true non compatibility. Google has held it together for this long, but I have to wonder if it is in their best interest to continue to do so. Recent statements made by Google have shown that Android isn't exactly the most profitable part of their massive tech portfolio. With Amazon coming on strong and Samsung exerting it's dominance, does the Android world still need Google? Does Google, with it's array of technologies, including another mobile operating system in Chrome OS, need Android?