:
will the Gamble pay off?
1
What kind of company is
?
Google was founded by Larry Page and Sergey Brin in September 4, 1998 at Stanford
University.
Their Business Model:
Profitable
• Revenues from ad, which is multiplying! Innovative
• Different kinds of services to attract Googlers:
Maps,
Gmail,
YouTube….
Diversified
• Good at software and services, but not hardware! 2
Android OS
Profit model: similar of the search advertising model
Advantages:
• free
• the fastest-growing OS in history
Problems:
• less profitable (search revenue low)
• users are less likely to spend money
• players have no interest helping Google monetize • highly fragmented
3
Patents and Lawsuits?
Copyright and Trademark infringements
Microsoft sued Google: 5 USD for every
Android phone manufactured by HTC and
15 USD for every phone made by
Samsung
AdSense related lawsuits
Google proposed to pay 2.8 Million
USD to settle with ORACLE
Patent breach and others…
4
Samsung: a reliable partner?
Android’s market share:
• high-end devices:
Samsung, a single and powerful player
• low-end phones: myriad manufacturers
IDC’s Top 5 Smartphone Vendors, Shipments and
Market Share- Calendar Year 2011 ( Units in millions)
2011 Unit
Shipments
2011 Market
Share
Samsung
94.2
19.0%
Apple
93.1
18.8%
Nokia
77.3
15.6%
HTC
43.6
8.8%
A big threaten to Google’s Android.
RIM
51.1
10.3%
Google Agreed to Pay Some of Samsung’s Cost $2 billions, assuming Some Liability in Latest Apple
Case.
Total (inc. others) 495.3
100%
Tizen:
27th Sep.,2011, Intel and
Samsung announced the birth of a new mobile platform.
Vendor
5
Why did
want to acquire
I have Nortel networks and
Novell’s patents now. You are still too young to play with me. Wait till you hear from my lawyer!
Cheap!
Text Steve
Jobs. Piss him off.
? ?
Hey, Larry. I just bought Motorola
Mobility with over
17,000 patents for about $12.5 billion in cash.
VS
6
What kind of company was
?
Motorola