Android- Disruptive Innovation?

I read this great, though-provoking article on Android. It talks about the disruptive market that Google has created in the mobile space. Here’s what I understood from it-

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1 The Android strategy is defensive rather than offensive. The tactic is about protecting the core business of Google- serving web ads. As the Android market share grows, its less likely for Google’s competitors to display ads to a large audience.

2 Google is paying carriers and handset manufacturers to put Android on their phones and also gives a cut of the mobile search revenues to carriers. In this process, they’re also getting rid of ‘middlemen’ of the web- browsers like IE and FF. Google had to pay them to make its search engine visible in desktop browsers.

3 For most consumers, if the UI looks and works somehwat similar to the iPhone and has all features, that’s all they need. They will stick to Android like they did while Microsoft improved from Windows95 to Windows8.

4 iPhone revenue is generated with the same business model they used for Mac. So its unfair to pit them against each other. (Win vs. Mac is also a useless debate).

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I am not sure if users will click banner ads on their phones the same way as they did on desktops. In phones and tablets, apps have become the main way for people to look for information not search. Also, the real estate on phones is too little to display ads. Ads can be displayed inside apps, but the experience is mediocre.

Consumers, carriers, handset manufactureres, software makers are frantically trying to innovate. Only time will tell who is going to prevail. Have a read of the article and let me know what you think..