Why is Google making the Android OS?

[Sarath]

I sometimes wonder, what are they gaining by making a full fledged software for a mobile phone and giving it away for free?

As we stand today, all three major OSes - iOS, Win Mo and Android, are almost similar. Tomorrow when both iOS and WM are bringing in new features and charging for the same accordingly what will happen of Android? Sure they will innovate too but new R&D needs a lot of money. Google has lots of it but that doesn't mean they will throw it away. So will it mean that we will see less innovation or Google will eventually start charging for the OS? (esp when R&D costs will keep increasing)

I am talking about the future of the OS. The present seems to be pretty peaceful with Android being open source and then having to pay royalties to MS to iron out the differences.

[Sam]

google applications & ads.

[Sarath]

That reminds me of the other fact. Unlike apple, android is not locked down so we have the Amazon marketplace for example and most people hopping on 4shared and such. So Android market is no monopoly to feed it exclusively.

Can it sustain itself over just ads and apps?

MS is happy that WM7 sells and even more when Android sells (volume + royalty)
Apple, we already know they make the most profitable smartphone of all (I am talking about their net revenue on each handset) and also runs the most profitable app store.

In coming years won't both of them be stronger than Android, especially when google solely develops the OS and the manufacturers either spoil it (Samsung) or improve it(?)

Google’s gamble with Android is that it will provide a compelling experience backed by Google services like Google Search, Gmail, and Google Maps — and those services, in turn, earn revenue for Google through advertising and access to aggregate customer data.

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Android conquers marketshare, Apple conquers profits: Who's winning? - Yahoo! News

[pramudit]

By making android OS, google is able to get development faster then any other operating system.. Since its source code is free, any developer can work on it and its development is not only carried out by google but also by companies like samsung, lg, sony etc and even independent developer contribute to this...
This way what we get a better Operating system which has better feature and I'm sure google must be paid a part of android phone profits... So in this way google has managed to make android popular, decreasing expenses and inturn it get better profits...
Due to its open source only people have managed to harness the power of mobile phone which is also its major achievement...

The latest example is ICS...
Google just had to develop it, the porting work is being done by companies and developers... This way google can focus on further development without wasting it resources on device support...

[ico]

Android is developed by Open Handset Alliance. Google is the leader. Internally all the companies are contributing. Google more so than the others.

[d6bmg]

Marketing & nourishing of talents for future uses.
Nothing more nothing less. Its business, not any social work.

[Liverpool_fan]

Originally Posted by Sarath

I am talking about the future of the OS. The present seems to be pretty peaceful with Android being open source and then having to pay royalties to MS to iron out the differences.

Correction: It's the handset makers who pay to pay the royalties and not the "OS". And those deals have a lot more than paying for bogus patent royalties.

Originally Posted by Sarath

As we stand today, all three major OSes - iOS, Win Mo and Android, are almost similar. Tomorrow when both iOS and WM are bringing in new features and charging for the same accordingly what will happen of Android? Sure they will innovate too but new R&D needs a lot of money. Google has lots of it but that doesn't mean they will throw it away. So will it mean that we will see less innovation or Google will eventually start charging for the OS? (esp when R&D costs will keep increasing)

No. They make billions from advertising from the Android handsets.

[Sarath]

Originally Posted by Liverpool_fan

Correction: It's the handset makers who pay to pay the royalties and not the "OS". And those deals have a lot more than paying for bogus patent royalties.

I was aware of that, but that sentence of mine didn't put forth that information.

I hope advertisements sustain it till long then.

Open Handset alliance...wasn't aware of that. Googling>>>

Originally Posted by pramudit

This way what we get a better Operating system which has better feature and I'm sure google must be paid a part of android phone profits... So in this way google has managed to make android popular, decreasing expenses and inturn it get better profits...

Android doesn't get paid by the manufacturers... because it is.......Open source

I read about it just this morning. I quoted it above too.

Neither Amazon’s nor Barnes & Noble’s offerings are smartphonesThey’re trying to make their money by locking Google out of Android’s revenue stream.

Amazon essentially forked Android, put on a custom interface that buries Android in the background, and plugged the device into Amazon’s substantial content offerings, including video, music, and (of course) books. Although Google will arguably see some revenue from advertising to users brought to Google services by the Kindle Fire, Amazon has cut out things like Google Books and the forthcoming Google Music, along with other services were Google could directly collect money from customers. The same idea underlies Barnes & Noble’s Android-based tablet offerings: Use Android to power the device, but do everything you can to lock it into your own services so you can actually make some money.

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[pramudit]

By getting paid i meant support...

[Liverpool_fan]

Originally Posted by Sarath

Android doesn't get paid by the manufacturers... because it is.......Open source

Actually you can sell open source software too. Google however chooses not to do so. Of course the ability to fork OSS makes this complicated but still Google owns the Android name. If Google desired they could "sell" Android, and co-exist with the freely available forks like say CyanogenMod.

[Prime_Coder]

Haven't you seen what Andy Rubin (the lead behind Android) has said in his tweet?

There are now over 700,000 Android devices activated every day

You see that's the tremendous growth potential.
Look at this article : Source article.