Anyone read "Inside the Googleplex?" Its an interesting read. Basically "build it and then we can make something of it." Google's aesthetic is to build massive data, THEN use that data to DESIGN stuff around it. Google's database is constantly growing and will never stop? Same with Facebook I think, hence their buyout of WhatsApp. I think Facebook doesn't even know what they are going to do with WhatsApp except collect data which they will then use multiple ways. I'm actually mentioned in that book :) Not by name, but my old company.
You're right - both companies seek to collect data to better target not only ads, but what users want, to improve the user experience and what they get out of the products. A big difference between the two companies, however, is that Google products generally attract users who are seeking to learn and buy. They actively seek products, services. Facebook's users, on the other hand, tend to seek socializing, not shopping. That translates into an immensely lower amount spent per user, despite Facebook getting more eyeball time.
There is not enough profit in the low end to change anything. You are referring to the phones here. You're correct if you're talking purely about the hardware, but if you're talking about the phones *and* their use, then I disagree for reasons detailed in the paragraph I wrote above. Low end phones generate tons of profit through their *use*. Not just apps and media content, but ads. I think the key for Apple is to find ways to expand their monetization of the use of their products beyond just iTunes. |
