InformationWeek writes that a Google executive claims that Android will outsell the iPhone.  I don’t doubt that this could be the case.  Anytime that you have a licensable or open platform, especially one that is free, you should be able to address a larger share of the market.

But there is a big difference between the two approaches that will have a far bigger impact on where developers.  Apple is building out the infrastructure to enable mobile developers to make money (through the Apple iTunes store).  Google will most likely use advertising to enable mobile developers to make money.

Advertising has been very successful on the Internet for the “Big 10″ companies (the Yahoo!s of the world) and has paid the bills for those that use the Internet as a means of selling other types of products and services.  With the exception of the “Big 10″, the cost of deploying Internet services has been drastically reduced, making advertising a realistic means of monetization.

Advertising has not replaced other business models when the cost of developing or maintaining an application or service is high (like games).

Which gets me to my point.  Mobile developers really need both models to be successful.  For people building high cost high value applications and services, the Apple model with “one click” purchasing will be very attractive.  For people building lower cost lower value applications and services, the Google model with transparent advertising will be very attractive.

The net result will be that more entertainment driven stuff will migrate to the iPhone where the developers will be able to make money.  This will most certainly attract customers (who have a propensity to pay) and, subsequently, advertising will follow the customers.

Unless Google also addresses the storefront issue, they may initially sell a lot of phones, but customers and advertisers will flock to the iPhone.

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