It has a music service. It has email. It has docs. It has YouTube. It has a tablet. It has a cloud offering. It will probably do a smartphone. It's selling a $249 laptop. It will probably sell a pair of smart glasses soon.
Google makes nothing off of any of this unless you click an ad while working within one of these platforms.
It would have scant mobile market share if it didn't give Android away for free.
What does Google need to do?Focus. Pick something and make it the core offering. Maybe YouTube. Tie it in with Google Plus. Because right now, Google Plus sits idle with a whole bunch of people joining "circles" and "+1'ing" stuff, but that's it. Integrate it with YouTube, make it all very mobile and social, throw in an e-commerce component, find some other ways to make money and focus. It's great to tinker. There's nothing wrong with hobbies. But, the search and ad model is changing. It doesn't seem as if Google is evolving alongside this shift. At the time of publication the author was long YHOO. Follow @RoccoPendola
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