) is only minutes away from announcing its newest product,
service or software update and analysts are weighing in on the
rumors. "If the rumor of HTC + FB Android phone is true, then it
is bad for Google (NASDAQ:
) -- and this may have led to Andy Rubin getting fired -- and
probably GOOG will need fix the Android Licensing loophole
immediately," Trip Chowdhry, Managing Director of Equity Research
at Global Equities Research, wrote in an e-mail to investors
"[A] Facebook experience-optimized Android phone is nothing
new for the industry. Amazon [(NASDAQ:
)] Kindle Fire is based on Android, but optimized for Amazon.com
experience and the same is for Barnes & Noble's [(NYSE:
)] Nook, which is based on Android but optimized for Barnes &
In his report, Chowdhry said that this licensing structure
"indicates a fundamental business model flaw in Google Android
Licensing, and may indicate one of the many reasons for Google to
fire Andy Rubin from leading Android."
Chowdhry based his analysis on the converged view of attendees
at various (unnamed) mobile and cloud platforms:
"Google Android is Open Source and is not Apache V2. License,
hence [it] is not like anyone can do anything with Android," he
wrote. "Google should have shown a better business sense when
allowing use of Android.
"Google should have put a clause in place to make sure that
few applications from Google should always be in any Android
Distribution, which is also called default applications...just
like Apple [(NASDAQ:
)] does in its iOS."
Chowdhry believes that these default applications could be
Search, Chrome (the browser, not the OS), Google Plus, Google
Voice, Picasa and Google Docs.
"But just like Apple allows, Google could also allow similar
applications created by other developers [that] could be
purchased and installed from Google Play," Chowdhry noted in his
He thinks that this would have prevented Google from being
pushed around by its "key competitors," such as Amazon and
Facebook, "who with just a little effort are becoming prime
competitors to Google in mobile."
"Converged view is that for past three years Google Chrome
team had been persuading Android Team to include Chrome Browser
into Android, and Android team continued to deny Chrome team's
request," wrote Chowdhry. "And it was only last year that Chrome
Browser got included in Android after some executives
If the Facebook and HTC rumors are true, Chowdhry expects
Google to "fix its licensing terms on Android, so that Google's
key competitors don't take a free ride on Google's Android
Louis Bedigian is the Senior Tech Analyst and Features Writer
of Benzinga. You can reach him at 248-636-1322 or
firstname.lastname@example.org. Follow him
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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