This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

The Plot to Dethrone Android

The major wireless operators around the world will deploy Firefox OS because they hope to constrain Google's emerging dominance in the ecosystem wars and monetization. The operators want a bigger piece of the economic pie than Google is offering them. Google takes 30% of the revenue in the Google Play store; the content creator gets 70% and the operator gets nothing except his monthly $20 or $30 mostly flat data fee.

Will the operators be successful in selling and monetizing Firefox OS? I am skeptical, but it will likely vary greatly from geography to geography. Google is on a major roll, with an epic onslaught of hardware, software and services slated for introduction between May and December 2013.

For example, Google will likely launch an epic attack against at least the U.S. wireless operators by offering free voice over IP (VoIP), including free SMS (already available) thanks to the more competitive LTE offerings becoming widely available later in 2013. This will be a huge blow to profitability of the wireless operators, and it will be an outright declaration of war between the operators and Google.


Make no mistake about it: Major operators such as AT&T and Verizon know what's coming from Google, just as the Germans knew what would eventually come across the English Channel on June 1944. The operators don't know the exact day in 2013 either, but they're trying to come up with a counter-move.

This counter-move the wireless operators are plotting seems to be to deploy Firefox OS. I do not yet see how this move will succeed in the end, but we have not yet seen the full picture of their technology and strategy.

When you have almost 70% market share, and you have further ecosystem monetization ambitions on the scale of Google, you have to be prepared for the players around you plotting to take you down. In this case, the latest move by the operators to try to cut down to size a major ecosystem giant will be to promote Firefox OS at the expense of Google.

My bottom line: It is way too early to call this game but, generally speaking, I would not bet against Google right now.

Whether you're another smartphone maker, or a wireless operator, Google has a huge offensive planned for May-December 2013 that will be as epic in the industry as D-Day was to the outcome of the Second World War. If you think the last one to eight years were interesting, you just wait until you see what's coming in the next one to eight months.

At the time of publication the author was long GOOG, AAPL, QCOM, NVDA, BRCM and INTC, and short MSFT and AMD

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.46 0.00%
GOOG $558.40 0.00%
MSFT $43.85 0.00%
FB $78.97 0.00%
TSLA $203.34 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs