Google Android and Apple iPhone: Business Models Compared

AppleInsider has taken an in depth look at the business models of Google's Android and Apple's iPhone OS.

iPhone
Apple's iPhone platform has a pretty simple business model: everything is run under the tight direction of one company to deliver what it hopes to be the most desirable offering possible, in order to sell the most iPhones to users.

The iPhone's software platform is knit into Apple's own hardware design and is tightly integrated with iTunes for setup, software updates, backups, media syncing, application management, and Apple's optional MobileMe cloud sync services.
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Android
Google's business model is more complex in some respects and yet also simpler. The company doesn't make money selling phone hardware or even in licensing the core Android software (which is free and open source). Google makes money selling ads and tracking users' preferences, which it does through its own Google-branded, bundled apps (which are not free nor open source).

This results in Android software only being as tightly integrated with hardware as third party vendors might choose to deliver (or are capable of producing). Hardware makers can add features that Google doesn't fully support (such as multitouch gestures or unique user interfaces), and Android can offer features that aren't implemented in certain hardware devices (such as compass support).
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Hit the link below to continue reading their detailed analysis of the two operating systems and business models.

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