We have all come across word “Bloatware” generally referring to all those OEM default applications that are pre-installed on our phones. We take them for granted and rarely use them, finding a way to remove them from our phones. This also includes Google apps that come pre-installed in our phones. like Google Newsstand, Google Movies, Hangouts etc. Even though they are present we don’t use them. we go for other apps.
Yeah! what’s so surprising about that? OS is Android and Google is its owner. So obviously they’ll try to increase their revenue through their apps, provided free to us. But most of the phones are not manufactured by Google and that’s why it isn’t as easy for them as we think. Including or excluding an app in the OS is left to the OEM based on some agreements and conditions. not to google. but we do get them in all of the Android phones just because Google pays them to do so. Such payments are called “traffic acquisition costs”. This is also applicable to things like the inclusion of Google as the default search engine, in-app searches resulting in google engine, google webviews (chrome). Google had also entered into an agreement with Apple recently regarding these concerns too. Now Google is the default search engine in Apple Safari browser just for this reason.
Well, you might be shocked to know how much Google pays third parties as Traffic acquisition cost. It is almost $7.2 billion a year according to last year’s reports! Surprising right? there is more. it is now 3 times the value that Google used to pay for the same in 2012. there are lot reasons for the hike. to balance it google is now pushing more advertisements on its server. now the phones are easily available to people and as well internet. so the revenue has increased for sure. that’s why it has to pay more now and is showing more ads now. it counts about 11% of googles total revenue. it is estimated to be $19 Billion this year. Google is now facing risks in this deal as the policies in the US and Europe have changed. Now the OEMs have greater powers. This has worried google but still it is in the deal.
This is the reason why Google is focusing more on its own hardware development and most probably it’s deal with HTC’s pixel team for $1.1 billion worth’s Google. So better think twice before removing the Google default apps (bloatware’s) next time.
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Source: Bloomberg
