Can Android Licensees Compete?
There’s a thought provoking article at asymco on what it calls ‘Android’s Pursuit of the Biggest Losers’. The observation is that Android’s licensees (Samsung, LG, Motorola and Sony Ericsson) are those with low operating earnings. The question is how these companies will be able to align with Google’s offering (based on services and advertising) and also whether they can invest in improving on Android.
The article says…
"So how likely are these disrupted ex-giants to recover and take Android forward? My bet: slim to none. Android does not offer more than a lifeline. It is not a foundation for long-term profitability as it presumes the profits accrue to the network and possibly to Google… Android’s licensees won’t have the profits or the motivation to spend on R&D so as to make exceptionally competitive products at a time when being competitive is what matters most."
I am not so sure why, with Android, the "profits accrue to the network and possibly to Google" necessarily has to be true. I think there’s more handset OEMs can do to improve on Android and differentiate their offering without necessarily spending large financial amounts.
These improvements involve thinking about Android as more than just devices, apps and different shells (home screens) and instead concentrating on getting ‘useful things done’. For example, partnering with 3rd parties to incorporate essential services (e.g. government, medical etc), entertainment services (e.g. video on demand) or even some vertical services that have sufficient numbers of potential users.
