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And why is the rest of the market so fixated on phones?

Because Google cannot sell an Android device on its own. They tried, remember?

Google as an institution knows even less about selling retail products than the average hot dog vendor. Meanwhile, Apple has very deliberately spent a decade building the best direct-to-customer retail operation in the tech industry, perhaps even in any industry.

So Google's customer-facing sales operation consists of mobile phone carriers. That's been effective so far, though I still wonder how much of its success is driven by the existence of iPhone carrier exclusivity -- nothing motivates Verizon to sell, sell, sell those Android devices like the threat of losing a flood of subscribers. But carriers are only interested in selling phones, because phones come with usage fees and contracts.

The lack of direct connection to the customer has all sorts of side effects on Google's business, and one is that they have no obvious way to effectively bring an Android-powered iPod Touch to market. They need to build a retail system from scratch - an even more difficult version of the task at which Gateway, Sony, and Microsoft have already failed - or they need a partner. Which partner? Existing gaming companies, the ones with the brands, all have their own platforms. Microsoft, for the moment, has their own platform. PC vendors have been selling commodity widgets for so long that they've forgotten how to sell something new. Is Google supposed to just buy shelf space at Best Buy and hope? Go back in time to the 1990s and ask the old Apple Computer how well that strategy worked.



> Because Google cannot sell an Android device on its own. They tried, remember?

I'm not sure about that, if you're talking about the N1. They barely even tried to sell it, I see the N1 as defining a (tentative) baseline for Android, which is supported by rumors of its configuration (1GHz CPU, 512MB RAM, 800xwhatever 3.5" screen) being the minimum configuration required for gingerbread.




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