Quote:
Originally Posted by Erick Estrada
Making no money on hardware isn't exactly a successful business model and it's not like these phones are really going to put a dent in Apple's business. This is more Google realizing that they can't compete with Apple in the hardware business and doing anything possible to get their OS in the hands of consumers even if it means making no profits on the hardware.
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You aren't understanding the business model at all here. The Nexus program isn't meant to make any money for Google as they are primarily a software company that makes their revenue off of people using their services and they have no real interest in producing that themselves. The more devices Google has in people's hands the more money it makes. Google does not compete on hardware and if you look at their revenues, this business model is hugely successful.
The problem is and always has been the nature of Android hardware manufacturing and the conflicting visions that hardware manufacturers have for the platform itself. The Nexus program is another way Google controls the Android platform by providing a device/development platform that conforms to their vision and steer consumer perception of what a Android phone should be. Any pennies they make on top of these goals is pure gravy to them. The result of this is a powerful phone for consumers at a very low cost which increases competition and gives better choice. Win win for everyone all around, except for premium hardware manufacturers like Apple.