Google's strategy for winning the smartphone wars: don't fight the smartphone wars

Why beat Apple if you can make money from them?

I missed this story when it went up, last week, but Business Insider's Nicholas Carlson has an interesting alternative take to the mainstream belief about how Google views Android. It's single sourced – attributed to "one ex-Googler" – but explains a few inconsistencies about the company's actions. The big starting point is the explanation for why Andy Rubin, Android's creator and leader, left the project unexpectedly at the end of March. Carlson writes:

Rubin told a room full of Google executives that Google-owned phone-maker Motorola was a hedge against Samsung growing too powerful.
Rubin's comments indicated a view of Android as something to preserve and protect.
Our source believes that Larry Page isn't nearly so worried about Android itself. This source says that Page views it as a means to an end.
He says Page views Google as "a cloud services company," built on cornerstone products like Search, Maps, Mail, and YouTube.

In other words, Andy Rubin was determined to make Android the best, and most successful, phone platform in the world. But while that's obviously the aim of Apple and Samsung, there's no direct reason why Google needs to "win" the phone wars. It makes more money from iOS than Android.

The obvious counterpoint to that is that Google spent $12.5bn buying Motorola in 2011. Why would it do that if it had no interest in taking on the hardware market? It appears the answer was lying in plain sight: when the purchase was agreed, Google claimed that it was Motorola's patent portfolio which it was after, and Carlson's source backs that up.

Even though Google obtained a world-class phone manufacturer lumped in with its patent purchase, it didn't ramp up its hardware business; the Nexus 4 was made by LG, and the company's tablets were made by Asus and Samsung. So what has it been doing? Carlson says it's been trying to boost the whole smartphone business:

Page wants Motorola to focus on better, longer-lasting batteries and faster chips, with the goal of pushing the entire phone-making industry forward.
Why?
So that Google's cloud-based services run better and can do more things on all kinds of mobile devices.

The theory is backed up by Page's choice to replace Rubin: Sundar Pichai, whose previous biggest success was securing widespread adoption of the Google Toolbar at PC manufacturers. If Pichai can make Google's web services as successful on mobile platforms as they are traditional ones, then it may not need an overwhelming success of the Android platform in particular to come out successfully from the smartphone revolution.

In that analysis, Rubin's Android team's success was actually the result of a failure of principle-agent management. His aim – to build the most successful smartphone platform – was not the same as Page's, nor, apparently, Google's overall.

Time will tell which of the two had the right idea. It certainly seems to be a waste of Google's burgeoning ability as a hardware manufacturer to refocus entirely on web services. The biggest threat for Apple remains that Google is getting better at hardware faster than Apple is getting better at online services, and it seems un-Google-like to simply cede that advantage. But if Google is genuinely in a situation where it can "win" whichever phone platform holds the lead, then that seems like a situation worth fighting to stay in.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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Jeremy Corbyn sat down on train he claimed was full, Virgin says

The train company has pushed back against a viral video starring the Labour leader, in which he sat on the floor.

Seats were available on the train where Jeremy Corbyn was filmed sitting on the floor, Virgin Trains has said.

On 16 August, a freelance film-maker who has been following the Labour leader released a video which showed Corbyn talking about the problems of overcrowded trains.

“This is a problem that many passengers face every day, commuters and long-distance travellers. Today this train is completely ram-packed,” he said. Is it fair that I should upgrade my ticket whilst others who might not be able to afford such a luxury should have to sit on the floor? It’s their money I would be spending after all.”

Commentators quickly pointed out that he would not have been able to claim for a first-class upgrade, as expenses rules only permit standard-class travel. Also, campaign expenses cannot be claimed back from the taxpayer. 

Today, Virgin Trains released footage of the Labour leader walking past empty unreserved seats to film his video, which took half an hour, before walking back to take another unreserved seat.

"CCTV footage taken from the train on August 11 shows Mr Corbyn and his team walked past empty, unreserved seats in coach H before walking through the rest of the train to the far end, where his team sat on the floor and started filming.

"The same footage then shows Mr Corbyn returning to coach H and taking a seat there, with the help of the onboard crew, around 45 minutes into the journey and over two hours before the train reached Newcastle.

"Mr Corbyn’s team carried out their filming around 30 minutes into the journey. There were also additional empty seats on the train (the 11am departure from King’s Cross) which appear from CCTV to have been reserved but not taken, so they were also available for other passengers to sit on."

A Virgin spokesperson commented: “We have to take issue with the idea that Mr Corbyn wasn’t able to be seated on the service, as this clearly wasn’t the case.

A spokesman for the Corbyn campaign told BuzzFeed News that the footage was a “lie”, and that Corbyn had given up his seat for a woman to take his place, and that “other people” had also sat in the aisles.

Owen Smith, Corbyn's leadership rival, tried a joke:

But a passenger on the train supported Corbyn's version of events.

Both Virgin Trains and the Corbyn campaign have been contacted for further comment.

UPDATE 17:07

A spokesperson for the Jeremy for Labour campaign commented:

“When Jeremy boarded the train he was unable to find unreserved seats, so he sat with other passengers in the corridor who were also unable to find a seat. 

"Later in the journey, seats became available after a family were upgraded to first class, and Jeremy and the team he was travelling with were offered the seats by a very helpful member of staff.

"Passengers across Britain will have been in similar situations on overcrowded, expensive trains. That is why our policy to bring the trains back into public ownership, as part of a plan to rebuild and transform Britain, is so popular with passengers and rail workers.”

A few testimonies from passengers who had their photos taken with Corbyn on the floor can be found here