Posted November 8, 2007 5:38 pm by with 6 comments

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Google isn’t the only one tearing up the airwaves wireless spectrum. After Google announced its new open source mobile platform, Android, last week, Yahoo is once again in the position of playing catchup. However, as Reuters states, they may still be able to garner millions of advertising customers before Google does.

And that, Yahoo says, is where the real money is:

Unlike Google, which said on Monday it was building a mobile phone operating system, Yahoo is focusing on mobile advertising deals and has no intention of getting into software design of phones like its Silicon Valley rival.

“The race is going to be who builds the biggest arsenal of partners and numbers of page views,” said [Marco] Boerries, executive vice president of Yahoo’s Connected Life division. . . .

Google risks being distracted by technology rather than being focused on advertising revenue, the lifeblood of both Internet players, Boerries said.

Boerries argues that Android is not only distracting Google from where the mobile money really is, but also going to delay their chances of making headway on the mobile front, unlike Yahoo’s current mobile strategy, already in progress:

The first phones based on Google’s mobile software, dubbed “Android,” are not due to appear until the second half of 2008. Google signed 33 initial partners, with Deutsche Telekom’s T-Mobile network operator and Taiwanese handset maker High Tech Computer Corp so far the only ones committed to offering some phones next year.

Yahoo already has deals to feature a package of services like search, e-mail and mapping on limited handsets from major phone makers, including Nokia, Motorola, Samsung Electronics, LG Electronics and HTC — every top name except Sony Ericsson.

Finally, Boerries makes two more valid points about Google’s competitive strategy in the mobile arena:

“Whatever money Google is going to make on advertising it is likely to pay in subsidies to the carriers,” he predicts. . . .

“If ‘Android’ is truly open source, we can take everything out there,” Boerries said of the outside possibility Yahoo might use Google phone software and run Yahoo services over the devices. “Nothing prevents me from taking it,” he said.

Way to really capture the spirit of Open Source, Yahoo—taking your competitors’ code to drive them into the ground.


  • Zen

    It’s nice to see how a little corporate competition can make technology development boost up!

  • “Way to really capture the spirit of Open Source, Yahoo—taking your competitors’ code to drive them into the ground.”

    Funny, though I can’t blame Yahoo for that idea. And does anyone really think Google is pushing Android out of the goodness in the plex. I’m sure Google is seeing it as a way drive their competition into the ground too.

  • I disagree with this article 100%. Google is way out-thinking you. When you give people what they want, they will use it. Just wait until you see Google’s phones and platform. Once the technology in the hands of the people, Google will have the upper hand in the mobile ad market (which is going to be huge). Yahoo will soon be on the sidelines wondering what happened. History repeats itself. Just look at Google’s Adwords content network. And then look at Yahoo’s content network. One is huge and dominates the Internet — the other virtually doesn’t exist. Same thing is going to happen with the mobile phone market, with Google cleaning up once again.

    Betting against Google? Not wise.

    Brad Switzer

  • Jordan McCollum

    You disagree with this article 100%? So Yahoo’s not working on mobile advertising deals? And Google’s out thinking me? I’m touched—I didn’t realize their thousands of engineers cared. 😉

    Yahoo and Google are competitors. Yahoo is far from dead, and they’re probably going to keep competing against Google for as long as they can. Betting against Google is their entire business plan. Should they just lay down and die now?

    Yahoo’s taking the steps to be as ubiquitous on the mobile web (right now) as you say AdSense is now. That’s the only contention this article makes.

  • Lets see how Android performs, if it works out, Google mobile search will be default search there and Yahoo Mobile may just die.

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