1) Apps: [Hundreds of thousands vs. hundreds]
2) Android User Demographics: Android is popular because it is a cheap smart
phone alternative to any other offering. BOGO (buy one get one free), 99
cent and free (with contract) offerings are popular. The same user base is
unlikely to spend an additional $400, let alone $499 for Motorola Xoom
tablet. The demand side for android-based tablets is not there.
3) Specifications Matter Little, Ease of Use Matters Most
4) *Android not Truly Open Source*
Android fans tout that its operating system is open source, but an open
source is defined by freely available code to the public that may be
redistributed with or without modification. Manufacturers have access to the
source code because it is needed for building the device.
Microsoft (MSFT) offers an indirect investment play for the boom in
Android-based devices in smart phones. Microsoft is currently negotiating a
$15 license fee for every android sold. It currently makes $5 for every HTC