Why Google Pays 10 Billion USD to Its Competitor Mozilla?

To Make Google as the default search engine, Google and Mozilla will renew the cooperation agreement at around 10 billion USD. In the case of haveing their own web browser "Chrome", Google's cooperation with Mozilla is understood as a kind of support to their competitor with their money. But Why?

On one hand, Firefox still has millions of users and this agreement means that millions of users will use Google as the default search engine when they are using Firefox. And using Google to search means Google can display ads and that means money to Google.

But 3 billion per year, that is 3 times more than the price in the agreement they signed in 2008. What's interesting is that Google released Chrome after they signed the agreement in 2008. From a common point of view, with the raise of the Chrome's share in web browser market, they should reach an agreement at a lower price. Although Firefox still takes up 1/3 of the web broswer market, their share is going down and the reason is Chrome.

Chrome is like a beast in the market of browser, it is swallowing the share of IE and also Firefox at the same time. Actually, according the the data from StatCounter, Firefox's share in browser market is lower than 2008. Think about it. Aug, 2008, 26.08% of people were using Firefox as their browser, 68.91% were using IE and at that time, Chrome was not released by Google. Last month, 25.23% of people were using Firefox as their default web browser and 40.63% of them were using IE. Chrome took 25.69% of the market. It's true that more people are choosing Chrome as their default web browser than choosing Firefox.

So Google will pay 3 times money, while Firefox's share in browser market is lower than 2008. Why they do that?

The first reason comes to my mind is the competition. Because of the bid. Microsoft wants Bing become the default search engine of Firefox. And it is really interesting that Yahoo also takes part in the bid and Yahoo's search engine is from Bing. So one reason is that Google spend money to let Microsoft and Yahoo out of the game. It's possible.

Microsoft spends billions of USD to try to compete with Google in search engine market. One of the result of this is that Google and Bing swallow Yahoo's share in search engine market together. Now Bing provides the result of Yahoo's search engine, so Bing hurts itself. Nowadays, Bing and Yahoo take the same percent of the search engine market share and Bing is paying this. Here I have to say that Bing and Firefox's cooperation is do useful to Bing. Let's say that Bing know that and when they talking about the cooperation, they are not cheapskate, but they are not that generous and will pay 3 billion a year. Because from the market share, 3 billion is a little crazy.

So why Google still pay this high price to Firefox? Analyst said that compare with the income from displaying ads through Firefox and competition with Bing, avoiding the problem of anti-monopoly after Chrome's share continue growing is the real problem Google cares.

It's not crazy, actually if now it is not the reason, it will be the reason in future. So far, it is relatively safe for Google's browser market in anti-monopoly. They are not like Microsoft and Apple, Google can not control the default browser in any kind of operation system. However, the problem will become more and more serious with the large download of Chrome from google.com and the success of Chrome OS. I think there will be a larger pressure from mobile devices. Now, web browser on Android devices looks like a normal browser, with more and more element from Chrome are added to it. It will become the real Chrome some day.

That means Google has a dominant operation system (Android) to promote their web browser. That will bring investigation from anti-monopoly just like Microsoft few years ago. But if Google pays money to support Mozilla and Firefox, it's another question. Let's wait and see.

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2001 --- 2011 Ten Years' Development of Smart Phone

Nowadays, Cell phone becomes a necessary thing when people go out as key and wallet. Customers now are giving more attention to smart phones, which can link to internet and freely download apps from app store and internet. So, what about the beginning of the smart phone and how the smart phone developed during the 10 years? Now let us talk about the 10 years' development of smart phone.

2001: The born of Symbian and Ericsson Produced the First Smart Phone

At the beginning of 2001, Ericsson released the first smart phone R380s based on Symbian, which had a touch screen under a flip. This kind of PDA + Phone model became a kind of smart phone model: Symbian UIQ. R380s pointed a bright future to Sony Ericsson P800 and P900 series. That is the first smart phone in the world.

2002: Microsoft and Palm Breaking out

Nokia 7650 is the first phone based on Symbian S60. Having a clear interface as normal cell phone, S60 users can freely expand function to their phones. Inner-build camera and MMS supported help Nokia 7650 gain a much attention. The later N seris proved that Nokia choose a right direction on smart phone design for these years.

Handspring's first smart phone is Treo 180(Palm OS). It is interesting that its processor is come from MOTOROLA and only 33MHz and 16MB memory, however, at that time, it is one of the big storage space.

At the end of 2002, Windows Mobile Dopod 686 is released and receives a lot of eyes because the Windows PC liked interface and easy to use. And I would like to piont out that the OEM of Dopod 686 is HTC(now one of the most popular smart phone producers).

Sony Ericsson P800 is the first smart phone using Symbian UIQ touch screen, at the same time, it also has a Keypad which is really convinient for many bussiness man and they love it very much. Sony Ericsson P800 is relased at the end of 2002 and Flight mode is first appear at P800.

2003: Microsoft VS Symbian

At 2003, handSpring published GSM Treo 270 and Treo 300, frist introduced colorful screen and Blazer Browser. At that time Palm OS has many cellphone software for users to read ebook, play cellphone game and surfing the internet. Also Palm OS can share files with infared port. Treo leads RIM BlackBerry on most fields. Except sending Email, BalckBerry mainly attracts bussiness man.

The smart phone of 2003 is Dopod 696 without any doubt. Dopod 696 is warmly welcomed by bussiness man because it is using Windows Mobile 2003 for Pocket PC Phone Edition which is really like Wins PC. Dopod 696 is the most classic Windows Mobile smart phones.

Nokia N-Gage is the first mix of smart phone and game boy. All of us can not predict that the reall PSP smart phone will appear 7 years later with Android system.

Treo 600 is the last one from Handspring. This small Palm OS smart phone is one of the best touch feeling full keyboard smart phone. It is momeried by users with its nice-feeling keyboard and fast Palm single task system. After Palm buy Handspring and its hardware department and Handspring made up of the PalmOne and produced the later Palm smart phones.

2004: Treo led the way, Symbian and Mircrosoft getting better

Treo 650, the most successful smart phone in Palm history, is released in 2004. This powerful all running easy to use full keyboard smart phone improve the resolution and color and succeed the fast operation and nice hand-feeling. However, because of the browser of Palm OS can not keep pace with the development of internet and the bad market strategy, it is the beginning of the Palm's failure.

In this year, Symbian's 7610 and 6670 make Nokia the king of smart phone. Dopod 818 is welcomed by female users because the its size is suitable for female and gives a new impression of Windows Mobile smart phones. MOTO still using its Linux and published E680 and A780 two classic smart phone.

2005: S60, the king of smart phone system

With a 2-megapixel camera and cool appearence, Nokia N70 and its Symbian S60 system gain great attention. From N70, Nokia's Symbian S60 system is getting better and better and most of S60 users first became S60 and Nokia lovers.

At 2005, RIM published 8700 seris and became the model of morden BlackBerry phones. Also in this year, RIM has 4 million users all around the world.

2006: The era of Nokia

Nokia N73 is released at 2005 with perfect appearence and performence. This is the peak of Symbian S60. It is like today's iPhone. Later Nokia published different edition of N73, and also received high attention.

At the same year, Nokia smells the bussiness smart phone and published E61 with full keyboard and it is the begning of Nokia Bussiness seris E.

2007: Nokia N95 VS Apple iPhone

At the begning of 2007, Apple released the first generation of iPhone. At first iPhone is not optimistic from many analyst. However, the first week, iPhone sold out 270,000 suites and more than 400million in 2007. iPhone received the most succesfull invention 2007 from "Times". Unique interface, gravity sensing and muti-touch and other new tech make iPhone having large fans on the planet. But, at that time, Nokia N95 is also one of the most popular smart phone.

Dopod S1 is also released in 2007, This "iPhone killer" is using HTC own TouchFLO interface with Windows Mobile system, but Windows Mobile is nothing better than Apple OS. This is one of the reason that Microsoft stop Windows Mobile and make its fans unhappy.

At the end of 2007 another giant of today's smart phone market "Android" is first introduced by Google. This strange small robot is now the biggest competitor

2008: Android, iPhone 3GS and the end of former king

The second generation of iPhone, iPhone 3GS, and App Store born together in 2008. The App Store makes iPhone more and more complete. Apple's charm and nice commission make the App Store no longer a useless shop. Apple Store is the sign of Apple's fully success.

Windows Mobile smart phone still makes no change deeply and the only highlight is HTC Touch Diamond.

At the second half of 2008, the first Android T-mobile G1 borned. This sliding keyboard Android 1.0 giving people a new model of smart phone system. From G1, Android system joins the competition of smart phone.

You have to talk about Nokia E71. At 2008, Nokia E71 makes Nokia still in customers memories. And Nokia 5800's release is not even success for Nokia.

2009: iPhone VS Android

iPhone 3GS receives most people's heart after App Store supply rich source of App. Altough the appearence is the same, iPhone 3GS still gets warm welcome for its double fast processor.

At the same time, anothe so called "iPhone killer" Palm Pre is published. Its webOS notice and gesture give users fresh feeling, but the lackness of app and windows mobile's failure making Palm Pre can not threaten iPhone becomes the king of smart phone.

At the end of 2009, MOTO's Android Droid released, nice design and well developed Android system help it sold out 105 million suits after published 74 days and its GSM edition "Milestone" now becomes one of the most classic Android smart phones.

2010: iPhone 4 Released

January, 2010, Google published its own first smart phone Nexus One, OEM by HTC. This smart phone can first update to the latest Android system and makes other Android phones fell bad. However, internet sell makes its performence average and it has some hardware problem can not be solved even today.

February, 2010, Samsung introduced its own system Bada at MWC in Barcelona and the first smart phone with Bada Samsung S8500. Samsung finally has its own operartion system Bada. Also one the MWC, Microsoft introduced Windows Phone 7 and in October punlished it and 10 smart phones with Windows Phone 7. Their proformence is still not good under the shadow of iOS and Android.

April, 2010, HP buy Palm with $1.2 billion and HP share price down 1% immediatly.

27, April, 2010, Nokia published its latest symbian 3 and Nokia N8 with 12 million pixels camera.

Iphone 4 is published on WWDC 2010 and becomes the most popular smart phone on the market. It is the most successful smart phone in the history. Its users enjoy themselves with iPhone 4 most with total video converter.

2011: Google & MOTO VS Apple

2011 is the most unrest year for smart phone industry. MOTO and Sony Ericsson already use Android only and Samsung, LG, HTC use Android as the main system.

At the beginning of 2011, Samsung published Android smart phone GALAXY S II and sold out 500 million after 85 days.

Febuary 11, 2011, Nokia announced that they and Microsoft became Strategic Partner and made Windows Phone as its main smart phone system.

April 27^th 2011, Nokia and Accenture signed strategic cooperation agreement and Accenture will respossible for the research and development of Symbian system. About 3000 Nokia employee become Accenture's staff.

June 21^st 2011, Singapore, Nokia Connection 2011, Nokia officially published Meego smart phone N9 and later will on the market. And this is possible the last smart phone with Meego.

July 15^th 2011, Google CEO Larry Page said that 550,000 Android deveces were activited everyday and now totally 135 million Android deveces on the world and more than 400 kinds of Android deveces on the market.

August 15^th 2011, Google purcheased MOTOROLA as $40 per share and in a total of $12.5 billion. August 18^th 2011, HP announced stop webOS devece's sale and sell their first TouchPad as $99.

It is said that iPhone 5 and iPhone 4S will be released on October 2011. During ten years' development, smart phone industry is like a game who will be the winner and who will be the next one that disappear from customers memories?

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