October 14, 2010 | by Andrew Kameka
With the growing number of players entering the Android app store game, one would think that Google would be a bit perturbed with companies treading on its turf. Not so according to executives from Google.
During its Q3 2010 earnings call, Google downplayed the perceived competition coming from alternative distribution stores for Android apps. When questioned about market alternatives, Google CEO Eric Schmidt had this quick response:
“The goal of the stores is to make money for the people who are writing software and applications. It’s not a revenue model for Google. There will be alternatives…it’s a net-win for Google.”
The gist of the statement is that Google’s goal is to encourage Android adoption first and foremost. Since they do not seek to profit from the default Android Market, they have no reason to feel threatened by other stores from Amazon, Best Buy, Verizon, or any other source since these stores will also help get apps onto device. (Google gives 70% of Market revenues to developers and uses 30% for operation costs and carrier payments.)
Based on comments regarding other issues during the earnings call, the end game is to be on as many devices and in front of as many eyes as possible. Google is betting big on the growth of mobile display and click advertising. Because many Android developers use advertising in apps, Google anticipates having an inside track to that emerging market – hence its purchase of AdMob.
More apps mean more Android use and potential for ads; and money.