Motorola Droid X: Google's Ticket to Success in Mobile Market

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Motorola Droid X: Google's Ticket to Success in Mobile Market

by Don Reisinger

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Sales Mean Everything

In order for excitement to build for Googles future prospects in the mobile market, the device that creates all that hype must have strong sales. Like the HTC Droid Incredible, the previously most important Android phone, the Droid X has that. The device is currently sold out, and according to most estimates, will continue to be sold out for another month. Thats exciting news for Google, and it should help the company in its efforts to prove that its capable of going toe-to-toe with Apple.

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Motorola Will Double Down

Based on the success of the Droid X, at least one vendor, Motorola, will be increasing its investment in Googles mobile operating system. Recent reports suggest the company will be releasing the Droid 2, a follow-up to its original Droid, in the coming weeks. That device will be running Googles latest Android version, 2.2. Going forward, look for Motorola to continue to support Android. It sees value in it. And Google should benefit from that.

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HTC Needs to Keep Up

HTC is undoubtedly seeing how successful the Droid X has become. And although the companys Droid Incredible is doing extremely well on its own, it might only be a matter of time before HTC delivers a Droid X alternative to capitalize on Googles increasing popularity in the mobile market. As that arms race heats up, it will be Google, perhaps more than any other stakeholder, that will benefit most. Thats good news for the search giant.

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Verizon Is Profiting Heavily

Its important to remember that in the mobile market, a company that delivers an operating system can only be so successful before it needs to rely on other companies. In Googles case, the search company needs to rely on carriers, such as Verizon. Luckily for Google, Verizon is clearly invested in Android. The company is heavily marketing Android-based products, its giving it preferential treatment in its stores, and all the while, its happy to do it, since Android is bringing more subscribers to the service. As long as Google keeps Verizon happy, the company will have a partner that it can profit heavily on.

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AT&T Is Watching Closely

As Verizon continues to profit off Android, AT&T has yet to make a real push in the Android space. This makes sense since AT&T is the exclusive iPhone carrier in the United States. It doesnt necessarily need Android to be successful. But eventually, the iPhone will be made available on multiple carriers. And when that happens, AT&T will need a backup plan. Based on the success Verizon is having with Android, that backup plan will likely involve Googles mobile operating system. That, in turn, will help Googles mobile division and give it another outlet where it can grow its business. AT&T could eventually become integral to Androids success.

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More Phones Mean More Market Share

Thanks to the success of the Droid X, there will likely be several more Android-based phones hitting store shelves in the coming months and years. And although they wont all sell as well as the Droid X, they will effectively help Google increase its market share as consumers buy each new unit. The Droid X and Droid Incredible might get all the attention, but even less-popular Android phones will contribute to Googles market-share gains each month. Vendors will be lured by the possibility of success, and Google will benefit no matter how popular a device is.

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Developers Will Keep Coming

Developers are central to the success or failure of smartphones. The more programs available in an app marketplace, the more likely consumers are happy with the products they buy. That, in turn, will only help Google sell even more smartphones. Its a nice cycle that benefits every stakeholder. Developers, seeing how successful Android has become, will continue to create applications to profit off that success. The more they do so, the more consumers see value in the software, making them more likely to buy phones from carriers that run on Googles operating system. Everybody wins, except the competition.

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Advertising Revenue

The main reason why Google is even competing against Apple, RIM and other companies in the mobile marketplace is to grow its advertising business. In fact, it was recently revealed that a significant portion of Googles mobile revenue is derived from advertising. Going forward, that success with ads should continue. Thanks to the Droid X, Android will be more popular, which should then help Google increase its influence in the mobile-ad marketplace. Meanwhile, the company will have the platform it needs, AdMob, to compete against Apples iAd. Google is well on its way to transforming the mobile advertising space. And it has the Droid X to thank for it.

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Microsoft Is in Trouble

Its no secret that Google and Microsoft are major competitors that would like nothing more than to take the other down. But thanks to the Droid X and the success of the Android platform, it looks like Google might win out. The reason why is simple: Microsoft and Google have the same mobile business strategy. Theyre both competing for the same vendors. Currently, Microsoft is offering Windows Mobile, a dying operating system that should be replaced in the fall. Google, on the other hand, is offering software that is becoming increasingly popular in the consumer and enterprise markets. At the same time, vendors see Android as a known quantity. Windows Phone 7 is a huge question mark, making it less likely to appeal to vendors. That, in turn, could have a disastrous impact on Microsofts mobile division. By eliminating Microsoft, Google can remove the single biggest threat it faces in attracting...

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The Possibility of a Desktop OS Scenario Is Likely

As successful as Apple is, the companys computer software, Mac OS X, is still far behind Microsofts. Rather than offer its software to hardware vendors, Apple decided to use its software as a differentiating factor for its computers. It followed the same strategy with its iPhone. Google, on the other hand, is quickly becoming the Microsoft of the mobile world by not offering its own hardware. So far, that strategy has proven to be extremely profitable. As long as Android continues to sell well, expect similar, Microsoft-like results going forward. Apple will be the top hardware maker, but when it comes to software, Google will dominate. Its not a guarantee at this point, but its becoming increasingly likely, thanks to the success of smartphones such as the Droid X.

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