14 DAY TRIAL // The tech companies are trying to become more mobile, acknowledging this as the future of the industry.
In the past few years, with the increased popularity of smartphones and tablets, more and more companies have tried to get a piece of the cake. Some managed to be among the first companies to bet on mobile, while others are only now catching up.
Regardless of when they started showing interest, this area has become important for Internet companies, tech manufacturers and app developers alike.
The race to build a good mobile platform is getting crazy. Yahoo, for instance, has bought four mobile companies since the month began, without taking into consideration all past acquisitions since Marissa Mayer stepped in as the company’s CEO.
The shift was immediately noticeable once Mayer started working for Yahoo last summer and they haven’t stopped since.
This indicates exactly how much they want to become competitive in this area.
Other big names, such as Facebook, are also in talks with various companies as they also wish to expand into the mobile world.
After launching Facebook Home, the social networking giant seems to be closing in on buying Israeli start-up Waze, which lets users track where they’ve been.
However, betting on mobile has another catch. It isn’t just about who manages to have a solid presence in the industry, but also about who wins the most money from advertising.
So, as much as some would ideally want to believe that tech companies think about their interests when they come up with such platforms, that’s not entirely true.
Having many users on the various apps and platforms they launch for the smartphones and tablets also means they have another way of earning money.
Adding another source of revenue to their portfolio makes them desirable in the eyes of investors. Just think of how much pressure investors put on Facebook after last year’s IPO about increasing their mobile revenue.
And by adding advertisements to their mobile apps, they managed to do just that. The mobile revenue increased 54% year-over-year to $751 million (€570 million) out of the $1.458 billion (€1.105 billion) total earnings.
Either way, regardless whether Internet companies choose to go into mobile for your interest or theirs, it’s sure to be a win-win situation.