Tomahawk, WI 11/12/2013 (BasicsMedia) – Google Inc (NASDAQ:GOOG)’s entry into the smartphone business was long expected to tip the market scale. Big names like Apple and Samsung must be watching with awe as it becomes clear that the search engine company is increasing its target at their lunch – smartphone business.

Apple’s iPhone line controls nearly 36% of the U.S. smartphone market. Samsung is still ahead. In China, Apple holds onto a 6% of the smartphone market. Samsung is holding above 20%. The two tech companies dominate key markets but with Google having out sold its Nexus 5 smartphone, it could be said that the company has cracked the red-hot market. Google’s Nexus 5 is out of inventory following overwhelming orders. The smartphone asks for about $350 on unlocked device and runs on Android 4.4. The high-end mobile device works on Sprint, T-Mobile and AT&T networks. However, Nexus 5 does not work on Verizon’s 4G network. The smartphone is manufactured by LG Electronic.

Nexus 5 not manufactured in advance

The search engine company has adopted a unique approach to the smartphone business. It makes the phones depending with the orders, rather than manufacturing in advance. This way, the company is able to reduce its operation cost at time when it appears to be still testing the market. By manufacturing with order, Google is setting itself from the price factor changes because when smartphones suffer price sag, it would be saved from huge financial losses which accompany such price drops.

The gain on Nexus is definitely a loss for the smartphone giants.  Unlike the leading smartphone makers, Google is yet to launch a high-powered campaign for this device. However, its focus seems to be China which is expected to top United States as the world’s largest market. In China, Google has been courting local cheap smartphone makers to gain entry into the lucrative smartphone business in the Asian country.

Going for every dollar

Google has lately been trying to go for each dollar in tech industry. Besides smartphones, the company is also increasing its hardware revenue through the upcoming Google Glasses which are expected to redefine the world of technology. Squeezing every penny out of any technology has become the in-thing in today’s digital age where no formula can be brewed forever.

Google’s overall revenue collection requires improvement. While the company’s performance remains superb, increasing competition in the tech industry leaves no room to take chances. This means that monetizing technology has become the natural thing before the competitors find a loophole to run away with it.

The search engine giant has YouTube, desktop and mobile ads as its top revenue earners. So far mobile revenue is soaring meaning that the company has its future in mobile search as smartphone uptake increases. Although the loss in desktop ad is being compensated with increase in mobile ad revenue, desktop is still far from menopause. As online video revenue is expected to hit $4.1 billion in the U.S. this fiscal year, Google’s YouTube has the potential of taking the lion’s share of this revenue given its popularity. Currently, YouTube is said to account for $1.3 billion of the U.S. online video advertisement revenue.

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