> Google's strategy of driving down handset costs continues. They don't make money on the hardware or software but rather on the data collection and advertising from android devices. Apple, on the other hand, makes their money from the devices.

But Google isn't making the devices.

> Why pay $600 to Apple when I can pay $170 to X.

How much does X make on that $170 device, compared to how much Apple makes on their $600 device?

> But they can essentially give it away and make money on the users…

Google can, yes. But their device manufacturers can't. And that's where a lot of Windows PC developers ended up—they raced to lots of low margin sales, and made less and less on each sale. It hasn't gone well for them.