Google to Copy iPhone’s Business Model for Future Nexus Smartphones

Google is hoping to reign in more control over its Nexus line of Android-powered Smartphones, by emulating a sales model developed and pioneered by Apple and its iPhone line, according to a new report.

Just a quick refresher for those of you who might not be in the know: Google’s current Nexus products are marketed under the Google name, however the hardware is designed and manufactured by one of the company’s many OEM partners — such as, for instance, LG, Huawei, or HTC. In exchange for the outsourcing of hardware development, Google allows the manufacturing partner to display their branding on the device alongside its own.

According to The Information, however, several key interests within Google’s upper ranks are looking to treat hardware makers similarly to how Apple treats iPhone component suppliers. And the CEO of Alphabet, Sundar Pichai, has already hinted that future Nexus handsets might only feature Google’s inscription on them.

This news, perhaps for obvious reasons, isn’t sitting well with the executives over at HTC, one of the companies currently in the running to manufacture Google’s 2016 Nexus phone. And although, financially, it appears to be a fantastic opportunity for HTC, losing out on branding the device with its own insignia could ultimately harm brand recognition in the long-haul.

Other than the (not so minor) issue of branding, Google is also pursuing other tactics similar to Apple — such as, for example, boosting their devices’ marketing budgets.

In years past, Google’s NEXUS devices have typically been regarded as showcase hardware — meaning that they’re intended to highlight what Android software and hardware is capable of doing with a growing budget. It’s understood that Google keeps roughly 15% of the revenue from sales of it’s Nexus phones, although that number is largely expected to increase as hardware manufacturers would likely shift most marketing duties over to Google because of the Nexus line’s already low profit margins.

Recently, there have been talks about Google possibly shifting its Nexus design to an in-house operation, mainly on account of the fact that the company is already micromanaging several hardware and design aesthetic aspects of the device. This idea, in theory, would quench the flames of a long-running fear that Apple would limit its ability to generate money from iOS users.

Because, you see, even despite Android holding the title as the world’s most popular smartphone platform, most of Google’s mobile revenue is derived from advertisements and services that target Apple product owners, specifically. Oh, the irony!

Of course, there will likely be a number of obstacles Google would have to brace for and get past in order to execute a plan like this. However, it IS still a possibility … I guess we’ll just have to wait and see what Google ends up doing, but, one thing’s for certain — any move to this effect will almost certainly result in Apple seeing increased competition in the mobile space.

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