James Allworth, a Fellow at the Forum for Growth and Innovation at Harvard Business School writes:
Baidu,… has taken an even bolder approach. It’s reportedly in negotiations with a number of smartphone manufacturers to remove all references to Google, and replace them with Baidu.
… Microsoft recently negotiated with Verizon that some of the Android phones that ship to Verizon customers will have Microsoft’s Bing, not Google, as the default search engine. And the manufacturers are getting in on the act too: Motorola recently released a new phone, the Citrus, based on Android, but shipping with Bing.
Yes, it’s Google’s operating system. In both these instances, it counts as a “win” in the handset volume war against Apple, Microsoft, Nokia and RIM. But Google will not make a cent on this handset, despite having enabled its creation with Android. All the search revenue will flow to Microsoft.
Readers of this blog might find these arguments familiar.
Since February this year, I wrote four articles under the headline “Google vs. Android” documenting these contradictions in Google’s strategy. There have been numerous other opinion pieces that described how Google’s approach was not consistent with an innovation-based disruption.
I’ve also argued that there is strategic incoherence in building systems software and hardware while selling web services.
Android is powerful, but as Google is finding out, power can be very dangerous without control.