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December 14, 2009 12:54 PM PST

Google ponders risky Android solo act

by Tom Krazit
  • 46 comments

As a company that has built a business model atop trust, Google is in a sticky position as it prepares to formally introduce the Nexus One phone.

Google Android Nexus One phone

Google's Nexus One phone could be a sea change in how Google works with Android partners who might turn into competitors.

(Credit: Cory O'Brien via Twitter)

Google employees were given free Nexus One phones at a company party Friday night, and the Internet went into a tizzy. Reports surfaced later in the weekend that this device was the long-awaited Google phone, the company's answer to Apple's strategy of controlling the hardware, software, and distribution model with the iPhone, rather than the partner-oriented strategy of developing the guts of the operating system and letting partners each put their own stamp on the finished product.

Just two months ago, Google's Andy Rubin rolled his eyes when asked about an analyst report picked up by TheStreet.com that said Google planned to pursue this exact strategy. He said Google had no plans to make its own hardware--which is one thing since smartphones are almost exclusively manufactured by contractors in China and Taiwan--but he took a further step in spending about 10 minutes arguing why it would be a bad idea for Google to design its own phone and sell it outside of carrier channels.

That line of thinking resonated with many who follow Google and the mobile industry. After all, Google's stated goal for Android ever since the project was revealed in November 2007 was to create an "ecosystem" of multiple phones that would help improve access to the mobile Internet. And Google seemed to finally reach that goal this year, with over a dozen phones in the wild and more promised from some of the world's leading phone makers and wireless carriers.

But if the reports are correct, Google is about to make a radical departure from that strategy. And Google's new course would take it down a path that could sow distrust among the company's Open Handset Alliance partners, who must now be wondering if they're about to get into a marketing war with one of the tech industry's richest companies.

Katie Watson, a Google representative, said on Sunday that the company has confirmed nothing about its plans for the Nexus One, described as a "dogfooding" experiment for internal testing by the company in a blog post Saturday.

In the rush to anoint the Nexus One as the Google Phone, it's quite possible that the tech industry glossed over the fact that Google already sells Android phones, albeit on a limited basis. For quite some time, registered Android developers have been able to buy completely unlocked versions of the G1 and the T-Mobile MyTouch3G (also known as the Google Ion) for $399.

Google Android Ion phone

Google does sell some phones, such as the Google Ion, but only to developers for Android testing purposes.

(Credit: Stephen Shankland/CNET)

So there is a solid chance that the Nexus One is merely the Android Dev Phone 3, following the Dev Phone 1 (G1) and Dev Phone 2 (MyTouch or Ion). Just this year, Google handed out Dev Phone 2 models branded as the Google Ion to attendees at Google I/O 2009, but if regular people want to buy that particular phone they have to get the MyTouch3G from T-Mobile with a two-year contract.

It does seem clear that Google has played the premier role in designing the software for the Nexus One. In the company's blog post over the weekend, it said "we recently came up with the concept of a mobile lab, which is a device that combines innovative hardware from a partner with software that runs on Android to experiment with new mobile features and capabilities, and we shared this device with Google employees across the globe."

But the key unconfirmed detail is how Google plans to sell this phone. According to The Wall Street Journal, Google plans to sell this phone unsubsidized on its own, with consumers able to choose a wireless service provider after the fact. However, according to corporate sibling Peter Kafka at All Things D's MediaMemo and Reuters, Google has plans to hook up with longtime mobile partner T-Mobile to help sell the Nexus One through Google's Web site for $199.

How will Google market this phone? Anyone with a television set has likely seen an ad over the last month for the Motorola Droid, an Android phone sold for Verizon's network that has been billed as one of the best Android phones to date. It was also the launch pad for a long-term pact between Google and Verizon that will supposedly produce a family of devices based on Android.

If Google plans to sell the Nexus One directly to consumers, will it insist upon using its brand as the lead brand, rather than the "With Google" branding found on the back of many Android phones? Will it blast the airwaves during the NFL playoffs in January to trumpet the arrival of the Nexus One, perhaps just in time for the Super Bowl? And how will that affect partners such as Motorola and Verizon that have sunk so much money into promoting the Droid, only to see rumors of a Google Phone leak out at the worst possible time: the height of the holiday shopping season?

This could be a very telling moment in Google's history. At the moment, Google's mobile division does not seem to be completely in control of the message it wants to send consumers, partners, and competitors.

If Google really does plan to sell the Nexus One directly to consumers and compete with its customers, it has chosen an interesting way to announce it to the world, keeping the Google Phone rumor mill alive for months while publicly denying such plans. Apple has employed such a marketing strategy for years, insisting on near-silence regarding future product plans but benefiting enormously from the frenzy of interest in every little morsel that mysteriously pops up regarding those plans.

However, Google is not Apple. Google public-relations representatives will sheepishly admit that they have little control over how Google rolls out its products: Google is a company run by engineers, and engineers push the button when the product is ready to ship.

But when you're working in an environment with multiple partners that have competing interests, any confusion over your future plans--especially plans that would appear to yank the floor away--can breed distrust among those partners. One of Google's largest problems right now is that it has built a business model geared around the notion that it can be trusted with almost unprecedented control over the flow of information across the globe, and any cracks in that wall of trust will be exploited by its enemies.

With the way details have trickled out about the Nexus One, Google has either alienated current and future Android partners by muscling in on their turf, or set up thousands of eager smartphone consumers looking for an open alternative to the iPhone for disappointment when they realize Google merely plans to sell an expensive unlocked phone to a limited audience, if at all.

After all, Google essentially declared in its blog post that employees are testing a product with "new mobile features and capabilities" that presumably can't be found on the current crop of phones. It's almost the same language Google used to introduce Chrome OS ("our attempt to re-think what operating systems should be") while insisting that it had no competitive reasons for introducing that Netbook operating system.

Few believed that line with Chrome OS, and fewer still will believe that Google is creating Android for the betterment of humanity if it really plans to sell its own phone.

Originally posted at Relevant Results
October 30, 2009 4:25 PM PDT

Google: We're not making Android hardware

by Tom Krazit
  • 11 comments

MOUNTAIN VIEW, Calif.--Google's Andy Rubin, head of the company's Android development, would like to clear something up: Google is not in the phone-making business.

Don't expect to see Google-developed hardware competing with the Motorola Droid anytime soon.

(Credit: Motorola)

Last week TheStreet.com reported that Google had plans to sell a Google-developed phone at retail this year, bypassing carriers with its own Android implementation. But Rubin, vice president of engineering for Android at Google, scoffed at the notion that the company would "compete with its customers" by releasing its own phone.

"We're not making hardware," Rubin said. "We're enabling other people to build hardware."

Now, Google has played a role in designing phones that have emerged with Android, such as the G1. For example, Google advocated the infamous hinge design on the G1 based on its desire to offer a phone with a five-row keyboard, Rubin said. That design was not popular with reviewers, however, and Rubin joked that perhaps that's why Google shouldn't make its own hardware.

But pushing for a design feature is a far cry from designing an entire phone, contracting with a manufacturing partner to build it, and working the distribution channels to get it to market. That would be "a fundamental shift" in Google's business model, Rubin said, and one the company does not seem prepared to make at this time.

Rumors of a so-called "Gphone" date back years, long before Google formally announced Android in November 2007. But Google's strategy to date has been a somewhat traditional volume licensing play, working with hardware and carrier partners to spread Android far and wide as the mobile operating system of choice, rather than following Apple's lead with a complete hardware and software design like the iPhone.

Almost two years later, the software is rounding into form with the release of several phones this year along with the pending release of the Motorola Droid, which runs Android 2.0 on Verizon's network.

Corrected at 5:50 p.m. PDT with Rubin's correct title.

Originally posted at Relevant Results
July 10, 2009 1:43 PM PDT

Google sees separate paths for Android, Chrome OS

by Tom Krazit
  • 14 comments

Google's Andy Rubin (left) and T-Mobile's Cole Brodman discuss Google's Android smartphone operating system at a press conference Friday.

(Credit: Tom Krazit/CNET)

SAN FRANCISCO--Among the many questions raised in the wake of Google's announcement of Chrome OS is exactly how the project fits in with Google's Android mobile operating system.

Essentially, nothing has changed, said Google's Andy Rubin at a press conference Friday morning highlighting Google and T-Mobile's partnership on the launch of the new MyTouch 3G smartphone. "You need different technology for different products," Rubin said, explaining that Google's approach to product development means that projects that might overlap aren't necessarily scuttled to protect the one that got there first.

Android is first and foremost a smartphone operating system, found on products such as the new MyTouch, the older G1, and others scattered around the world. But companies such as Acer and Asus are planning to put Android on Netbooks later this year, and several others are rumored to be following suit.

Chrome OS, however, is supposedly going to arrive on Netbooks first when it's scheduled to be ready in the second half of 2010. So how should companies thinking about alternatives to Windows on Netbooks navigate about Google's operating system strategy?

Google's blog post announcing Chrome OS acknowledged the overlap. "Android was designed from the beginning to work across a variety of devices from phones to set-top boxes to Netbooks. Google Chrome OS is being created for people who spend most of their time on the Web, and is being designed to power computers ranging from small Netbooks to full-size desktop systems."

After a panel discussion, Rubin declined to get into specifics about how Android and Chrome would be presented to Google partners once both are on the market. But during the discussion he noted that Android is capable of handling complicated, specialized tasks that a browser-based OS may not be able to tackle.

For example, Android handles the complicated process of handing off an Internet connection between cell towers as you drive down the highway, and carefully manages the power consumption of the system to extent the battery, Rubin said.

Google is also planning to make social-networking technologies a big part of a future Android release, he said. Google just released Android 1.5, known as Cupcake, and plans to keep the sweet desert theme going into the future with code names such as Donut, Eclair, and eventually Flan, but Rubin didn't specify which release will introduce heavier integration with social technologies.

And work continues on making Android suitable for things like set-top boxes and even refrigerators, Rubin said. "Our team is working hard to define those profiles. We've done a good job defining those profiles for cell phones."

But the Netbook situation remains murky. Is Google going to support two different operating systems for the mini-notebook market? As of yet, no Open Handset Alliance type of partnership exists for Chrome OS, meaning that unless that changes Google will have to do almost all the heavy lifting on Chrome development and support itself.

May 21, 2009 4:00 AM PDT

Google's Rubin: Android 'a revolution'

by Tom Krazit
  • 45 comments
Andy Rubin

Andy Rubin

Among all the companies fighting to grab a piece of the brightest star in computing--the smartphone--Google seems the least interested in taking the spoils.

Android, Google's mobile operating system, doesn't generate revenue for the company, and likely never will--at least in the direct sense. But Andy Rubin, Google's director of mobile platforms, thinks Google and the world will benefit from any device created with the intent of getting more people onto the Internet, and isn't shy about explaining why the open-source approach chosen for Android holds the most promise of reaching that goal.

Android made its debut in 2007, a few months after another computer with designs on improving the Internet experience on a phone--the iPhone--hit the streets as perhaps the most hyped gadget ever. Buzz has been slower to build around Android, but that could start to change as additional phones arrive that have a bit more pizazz than the G1, the world's first Android phone released last October.

Ahead of next week's Google I/O Developer Conference, where Rubin is expected to discuss future Android phones and goals for the software, he sat down with CNET News to review Google's progress thus far and share his impressions of what makes Android unique.

Q: How do you reconcile the goals of staying open with the need to offer carriers their own experience and the compatibility problems that may come as a part of that?
Rubin: Traditionally what's happened is the burden has been on the (phone makers) to be systems integrators. And what you get is kind of a lowest common denominator of functionality and usability because the software was actually developed by multiple parties, and nobody was really thinking holistically about the user experience.

It's (about) how do people expect these products to perform, and what are the various paces that a consumer will put these products through? No one company was thinking about that.

And so a huge benefit to this open platform is that it's complete, it's basically everything you need to build a phone. Sometimes the reason things fragment is because the platform is incomplete and people need to fill in the pieces. And when you fill in the pieces, you inherently have incompatibility.

It is possible to have a completely different user interface with a completely different look and feel but still be compatible. And that will be demonstrated.

There will be a couple of launches; we've generated a lot of interest in China. The use cases in China are slightly different in the U.S.; typically in China, because of the Asian input, people prefer a pen-based interface rather than a capacitive-touch based interface because they expect a stylus to be able to draw the complex characters. So the use case has completely changed but we have achieved compatibility.

How did the goal of Android evolve after it was brought into Google?
Rubin: The goal was pretty much the same, the business model obviously changed. Google's business model is deep into advertising, and so for Google this is purely a scale of the business, we just want to reach more people, and hopefully they'll use Google and we'll get the upside of the advertising revenue.

By the way, we're confident enough in our advertising business and our ability to help people find information that we don't somehow demand they use Google. If somebody wants to use Android to build a Yahoo phone, great.

Did you ever consider doing a phone? A Google phone?
Rubin: Yeah...I mean, it's funny, if you build one phone...I'd much rather be the guy that does a platform that's capable of running on multiple companies' phones than just focusing on a single product.

A single product is going to have, eventually, limitations. Even if that was two products that's going to have limitations. But if it's a hundred products, now we're getting somewhere, to the scale at which Google thinks people want to access information.

Getting back to business models, Google has a great business model around advertising, and there's a natural connection between open source and the advertising business model. Open source is basically a distribution strategy, it's completely eliminating the barrier to entry for adoption.

When Android was a start-up company, it was always a razor/razor blade business. The razor, the free thing, was the open-source operating system. In Android's original business model, the blades were basically provisioning systems that we sold to wireless carriers that had hooks into the open-source operating system. That was an unproven business model, I would say, and certainly the feedback I got when we were going for venture financing was that it was an unproven business model.

I was willing to give it a go, but then Larry and Sergey and Eric came along and said, "it's much more aligned with Google's core business and Google's business model, and you'll have a much easier time executing within Google." And retroactively, I agree.

Is this a market share play? Is this something where you want to conquer the mobile world?
Rubin: We look at it first from the scale perspective. The mission here is to organize the world's information and make it universally accessible and relevant. So the accessible part: think of a world in which you are somehow prevented from accessing the information you want. When I go to a hotel room and pay the $19.95 to get on the Internet and they have some firewall that doesn't let me get to my Exchange server, it makes me berserk.

Google doesn't sell Android, but hopes to encourage mobile Internet use to drive Web searches--and ads.

(Credit: Stephen Shankland/CNET)

I look at things--and Google looks at things--in (terms of) how could the landscape change in such a way that consumers who want to access Google services can't?

In that honest goal of not having consumers being blocked and allowing them to access information, it helps our competitors as well. What we don't want to do is disadvantage anybody by being the only person; we don't want to create any kind of separate structure where people can only access Google. And this is the definition of openness: it's not just open source, it's the freedom to get the information that you're actually looking for.

Why is this approach better what Apple or Palm is doing where they control the whole device?
Rubin: Controlling the whole device is great, (but) we're talking about 4 billion handsets. When you control the whole device the ability to innovate rapidly is pretty limited when it's coming from a single vendor.

You can have spurts of innovation. You can nail the enterprise, nail certain interface techniques, or you can nail the Web-in-the-handset business, but you can't do everything. You're always going to be in some niche.

What we're talking about is getting out of a niche and giving people access to the Internet in the way they expect the Internet to be accessed. I don't want to create some derivative of the Internet, I don't want to just take a slice of the Internet, I don't want to be in the corner somewhere with some dumbed-down version of the Internet, I want to be on the Internet.

Even if that comes at the cost of compatibility or UI advances? If you're going to be the Everyman phone, you're going to have to make some sacrifices at some point, right?
Rubin: I think that's yet to be seen. I think we've done a pretty good job. Again, we're talking about a clean slate technology that didn't exist a few years ago. So I'm actually thinking this could be a revolution.

Remember people used to trumpet "write once, run everywhere"? Well, I think we're actually there. I think when we start talking about the possibility of exploring things like Netbooks and car navigation systems, you have potentially different processor architecture types. You have Intel, you have ARM, set-top boxes have MIPS.

We have all sorts of different processor architectures, and the guys who are steeped in legacy have trouble addressing those markets with a single solution. I actually think Android is the potential single solution that can address all those markets, and it's new, it's revolutionary. It will change the game.

If this is a revolution, why haven't we seen more of these phones?
Rubin: It takes about 18 months to build a phone from end to end. What we wanted to do for our market entry was make sure that we had one successful showcase product to prove that the product was reliable and robust and ready to go. We chose HTC as our partner for that.

The forthcoming Samsung i7500, based on Google's Android

(Credit: Samsung)

At the moment we open-sourced, November 7 (2007), that's when a lot of these guys got their hands on it. We're still in that 18-month window of building products, and what you'll see coming up is a whole string of products.

What did you learn from Android 1.0 to 1.5?
Rubin: I learned that 1.5 was the product I wished was 1.0. The reason is it's a different business for Google: helping the industry build operating systems for their cell phones.

Because on the Web, you can iterate very quickly, and you can put things out in beta, you can fix bugs literally hourly. On cell phones you're blasting something in a ROM in a device that's in manufacturing where you did just-in-time ordering of all the parts and have inventory risk and everything else. Widgets are literally coming down a factory line, and if software isn't ready by the time they reach the end of the line they're going to drop on the floor and pile up. And that winds up costing a lot of people a lot of money. And if you don't get it right, you're kind of hosed.

What is going to dictate who wins and loses in this market? We all have different things that we may want in a phone. How do you try to be the Everyman phone and try to keep up with what's going on?
Rubin: We're trying to be something really unique, and I don't think anybody else is offering this. We put a very focused spotlight on openness, and openness is the means by which you get the product that you want.

Do people care (about openness)? I mean, the industry might care, the partners in the Open Handset Alliance may care, but do consumers?

It's an enabler. I'm not on some marketing campaign to educate consumers about what openness means. Actually, if you ask anybody on the street, you're going to get 10 different definitions of openness. The Symbian guys are going to be like "I'm open," and the LiMo guys are going to say "I'm open."

There's probably like a royal flush of openness, where you can lay your cards on the table and say (pointing) "open, open, open, open, open," it's the guy with the most open that's going to win.

I think we're that. I think that we have an open ecosystem, we have an open-source platform, we chose the right license, there are no viral aspects, it's absolutely 100 percent free, it's complete, it's everything you need to build a phone. When you add all that stuff up, all those ingredients, potentially--I think the jury's still out--we can make a really successful product.

Originally posted at Digital Media
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