Google appears to have conceded defeat to the iPhone in the mobile devices hardware market with its decision to stop selling its Nexus One phones.
Less than a year ago, Google had announced its entry into the mobile devices hardware market with its launch of Nexus One. Right after the launch they used their muscle power in the advertising space to show the Nexus One phone in front of every single person. It appears that the customers have shown their muscle power and reminded Google as to who the final decision maker on this market is.
Nexus One sales have been extremely poor with Apple just ruling the market both in the mobile phone segment with their iPhone and also introducing iPad, which has been selling like hot cakes.
Google has followed one of the good fundamentals of business which is to identify losses as early as possible and stop further losses. With the discontinuing of the mobile hardware division, Google can now focus on the mobile software division, where their support of Android is catching up well with the iPhone apps on mobile devices.
A huge advantage that Google has over iPhone in the mobile software market is that they can have their apps visible on unlimited number of devices, as long as the device is ready to adopt the Android mobile operating system. This power will lead to a natural evolution process, which defines that certain effects cannot be stopped by any force, as the need is much stronger. With iPhone apps stuck to devices that are propreitory to Apple, Android apps will overtake them in just a matter of time – unless Apple does something drastic to disrupt the cause – ie ease of adoption of good apps on multiple devices.
Google’s Vik, who is one of the most popular strategists in Google, is now heading the mobile apps division and that shows the amount of seriousness that Google is showing on this.
With the fact that mobile devices are going to be the primary device of choice globally, it is no surprise that everyone is rushing to get the biggest piece of the pie. Though Microsoft is way behind in the online world, it will be interesting to see how they react to such a move from Google.