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So your point is that OEMs will ship Android phones with Google services because they're better than alternatives? What if Microsoft pays Samsung to ship their phones with Bing, and they're still wildly successful? How does being the developer of Android OS help Google reach search customers? If the most successful Android OEMs were to ditch Google services for whatever reason, then Android OS development costs would be better spent directly paying OEMs to ship with Google services, and Google would have little reason to keep sponsoring Android's development.


You're forgetting a lesson we learned from Microsoft. When people in developing countries were pirating Microsoft software (Windows, Office, etc), Microsoft released lower-cost versions of their software to save some face, but in reality Microsoft just didn't care. Let developing countries pirate our software, the important thing is they're using our software. Which means they're not using competitors software. Which means Microsoft stays on top, in the mindset of the people, and when those countries become developed the people will buy legitimate copies of Windows/Office.

Google has this even better on Android. People aren't pirating Android, they're using open source software. And even if that software runs Bing or Yahoo search and the users like Word to Go rather than Google Docs and Outlook.com rather than Gmail, they're still using Android. Which means they're not using iOS. And chances are, they'll want to stick with the OS they know, so in the future they might end up with a more Google-ified device. Keeping them off iOS is the first step to having them as lifelong customers. Microsoft knew this, and Google knows this.


You missed the other critical example: Adobe.


Actually, Adobe might be a better example than Microsoft. I picked Microsoft because it's the OS space similar to Android. Adobe is a great example.


I think w1ntermute is trying to say that Google has commoditized their compliments (http://www.joelonsoftware.com/articles/StrategyLetterV.html). Google is benefiting not from control but by weakening lock-in. The barrier of entry to the phone market is much lower with android dominating.

Without high barriers to entry Google can count on churn in the phone market. Right now Samsung is king, before it was HTC, maybe LG will be next? Android thus becomes the defacto OS while phone companies fight over the hardware.




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