The Cost of an Android License: Bring Your Own Innovation

Android has become a true market disruptor over the past twelve months, and the smartphone industry has been turned on its head as market participants rush to ramp up their differentiation strategies and products and extend them beyond the smartphone segment. Android has removed the software barrier to entry for the smartphone market (the hardware barrier has been removed by companies developing fully integrated ready-to-go handset platforms). With these barriers removed, new participants have skyrocketed to relevance in a mere quarter, while established platforms have lost OEM and developer support. Companies that are used to defending their position through hardware and software advantages no longer enjoy any long-term visibility as they may be exposed to a completely new competitor every three months.

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