Google Isn’t Looking For An iPhone Killer

12/10/13 10:45AM EST

Google Isnt Looking For An iPhone Killer Google Isnt Looking For An iPhone Killer

Image via Flickr/ Anderson N. Leonardo

Every single major smartphone release from Samsung comes with the tagline “iPhone Killer.” The South Korean company is obsessed with Apple Inc. (NASDAQ:AAPL) success and it should be. The Cupertino company is still making Samsung look weak after years of iPhone killing releases. There is, however, an interesting change in attitude when one looks at Google Inc (NASDAQ:GOOG).

Google doesn’t really care if somebody manages to kill the iPhone. The situation right now suits the company well, and it’s only getting better. Almost everybody in the western world is now carrying around a smartphone. That means more internet time and more ad dollars. That’s what Google cares about, and it doesn’t matter if those ad dollars are coming from Android or iOS.

Google Still Needs Android

If that were entirely true, Google Inc (NASDAQ:GOOG) would never have entered the smartphone market in the first place. There are problems that Apple Inc. (NASDAQ:AAPL) has created that Google is trying to solve, but few of them require the death of the iPhone. Google simply isn’t interested.

Google invested in Android in order to protect itself from iOS domination. The company sees that too much power in the hands of a single company could cause havoc. Apple dropped Google maps last year. If the company was reliant on Apple smartphones for users that could have been a disaster.

Google needs Android. The mobile operating system is incredibly useful and it brings a large amount of people onto Google services. The operating system doesn’t really make that much money, however, and Google is really holding it as a buffer against what may happen in future.

Samsung itself is still working on its own proprietary operating system for mobile and companies like Inc. (NASDAQ:AMZN) have taken Android and modified it to such a degree that it offers little to Google. Android is a cushion rather than a true investment. That doesn’t mean there aren’t things Google wants to change.

Google Android Strategy

Google Inc (NASDAQ:GOOG) doesn’t want to find an iPhone killer, it wants to find a margin killer. Google wants to cut the margins out of the smartphone business. This will result in better technology being used earlier and lower prices being found in stores. Google controls the internet. The company’s benefit lies in that direction.

In order to achieve its dream of lower margins, Google has been offering alternatives. The company’s Nexus 5 smartphone is fully featured and comes in at just $349, while the Moto G costs just $180. Google is attempting to lower prices across the smartphone world. That is likely to lower margins and hurt Apple, but it won’t hurt the iPhone itself. Samsung will have to keep trying.

Disclosure: Author represents that he has no position in any stocks mentioned in this article at the time this article was submitted.