White-Label Custom Android Devices, Shipped To Your Door
The really cool thing about open source mobile operating systems, like Android and Symbian, is that they open up so many possible business models for people to try. I have written about these from time to time, and here is another one for you to chew on.
You may be familiar with a site called CafePress. CafePress allows anyone to create their own virtual online store for custom-branded items: T-shirts, caps, mugs, mouse pads, etc. CafePress is used by everyone from individuals up to Wikipedia. CafePress lets the store owner set the markup and handles all of the fulfillment. The store owner is responsible for marketing the store.
Here’s how this could be applied to Android:
A device manufacturer — probably a smaller one, not well-known in consumer circles — would set up a CafePress-style virtual store site, populated with a few Android-ready devices that they have created. Or, perhaps they make arrangements to set up custom-branded products in other storefronts, like Amazon. They would pitch their virtual store to the developers creating alternative Android firmware, such as Cyanogen, OpenEclair, and the Guardian Project.
The firmware maker, if interested, would create their virtual store by uploading a copy of the firmware (probably one copy per device, to account for driver differences). The firmware maker would then promote their devices as part of their general pitch.
When an order is placed, the device manufacturer would slap the firmware on the device, package it up, and ship it to the consumer, through a simple assembly line operation. While this sounds expensive, it’s not — print-on-demand book printers do this all the time for not much money.
The device manufacturer, for the cost of the assembly line and some Web technology and administration, would create their own channels to consumers. They still get the economies of scale from having a few standard device models, yet they do not need to go begging to some large existing reseller (like a carrier) to sell through — though they can do some of that too, if desired.
The firmware maker gets a way to get their firmware out to people scared of bricking their phones. Plus, these devices may be less expensive than other Android devices, so long as the firmware maker does not slap on a huge markup. It brings in a bit of money, particularly useful for those only doing the custom firmware as a hobby. For those who are more serious about their firmware, it will help to legitimize their business, helping them perhaps land other deals (e.g., 1,000 tablets with their special super-secure Android distro for use by a local hospital). Yet, they do not have to commit to selling a million devices, which is what it might take for a normal OEM deal.
