He was wrong with 4 Google Nexus. Not from the point of view of those who could buy a large terminal in the middle of the expected price, which got it's full. But from the moment in which introduced a distortion in the market and, above all, in its ecosystem of manufacturers who suddenly looked like Google paid a party that had to compete.
A few days ago Android companions wondered why the Nexus range has not revolutionized the prices and we find the S4, the One or the same LG Optimus G (the latter significantly cheaper) on the same line as before the Nexus 4. My answer to this question would be clear: there is a business model that hold subsidize the smartphone to the point of offering him almost cost price.
It should be recalled that only three (in practice two) mobile manufacturers earned money until recently, and only one - Samsung - from Android terminals. It is not that we are in a scenario where there are many actors enjoying margins soaring with a sort of little competitive oligopoly, is that the market has been very hard, Apple is doing very well and even large manufacturers such as Nokia and Blackberry many years suffering.
On the other hand, I would also remind the "view" on Google back in 2006. Its by the then CEO, Erich Schmidt, noted that mobile phones would become free thanks to the grant of publicity. Seven years later not only we are not there, but that that scenario seems rather unlikely even if we add the income to be derived from the sale of content and applications.
The fact that who most committed to subsidize hardware and have low margins - Amazon - is thinking more a set top box which on a phone does but reinforce that the telephony business remains the sale of hardware, something that is latent in the balance between Google, Android, and manufacturers.
An interesting point is that Nexus 4 gave something important to LG: told the whole world that they were able to make a great high-end terminal, competitive with the Sony, HTC and Samsung. LG takes a couple of years to grow from input range and average, with best ever figures thanks to a good balance quality / price.
Now he played the assault on the high end and here is when Nexus is no longer as good news for them. In comments both analysis of the LG Optimus G emerges again and again as an inescapable shadow. The price that prevailed in the market has become internalized by more advanced users (read communities as the Engadget and similar) and is the brand that play you more against: the Z Xperia, HTC One or the Samsung Galaxy S4 are perceived as "something else", the LG Optimus is "too similar".
In any case, I think that LG has some outputs to this situation. On the one hand this terminal franchise will help you sell more in the mid range, other operators can do their job with good deals for a terminal like the Optimus G (no longer being quite attractive, I've been testing it for a couple of days and it is liking me much, even give him a little more than note that what appears in our analysis)... and would have that the shadow of the Nexus 4 and its price is It will be blurring as time goes and their specifications are further back.
And now the question that many are made, again Google subsidize Nexus 5? Server is quite skeptical, if I had to bet it would to something like what has been done with Nexus 4 won't be repeated and that, if they do so, distributed it primarily in countries with high share of Apple, not so much in Spain and the like.
Why? By what we said at the beginning, Google made a mistake regarding the ecosystem. To whom is involved - LG - it is the stain of having to compete with itself but much cheaper; for the rest is not but a brutal competition by those who, in addition, has control of Android. With everything that is created is a brutal incentive for Samsung, Sony and HTC to redouble efforts with other platforms.
Soon there will be Google I/O and Engadget will be there, we will see if they surprise us with some unexpected movement. Because, in addition, Google still some Motorola and something will have to right?
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