In September 2008, with the financial system collapsing, Google unveiled the G1, the first phone running its Android operating system, made by HTC for T-Mobile. The platform was free: no one was charged to use it in a device or to build applications, and Google released the Android 1.0 SDK the same day.

Google had announced Android a year earlier with the Open Handset Alliance, a group of more than 30 carriers and makers. On October 21, 2008 — the eve of the G1's US launch — the alliance released the entire platform as open source under the Android Open Source Project, letting anyone adapt it.

The bet was that openness would win scale where proprietary rivals could not. Nokia had just made Symbian free too, but Android's momentum compounded: by 2018, ten years after the G1, Android was closing in on 90% of world smartphone share, and critics credited Google's decision to give it away while funding it with ad profits.

Android 1.0 shipped free to makers, developers and carriers in October 2008 and was fully open-sourced; within a decade it neared 90% of world smartphone share.

Free licensing removed the cost barrier that slowed every other mobile OS.

Open source let makers customize, and developers write without permission.

The Open Handset Alliance gave Google carrier and manufacturer distribution.

Advertising profits subsidized a platform that sold no licenses.

Giving away the platform — no license fees, open code — can beat proprietary rivals in a downturn, because every maker's cost advantage reinforces yours.

Android became the world's dominant smartphone operating system, turning Google's mobile strategy into an advertising business and leaving Symbian, Windows Mobile and BlackBerry behind. The G1's launch — days before the market's worst month — proved that a downturn is a fine time to launch a free platform.

FOLLOW THE EVIDENCE

The sources

  1. Google makes handset debut with rival to iPhone theguardian.com
  2. The first Android-powered phone googleblog.blogspot.com
  3. Google and the Open Handset Alliance Announce Android Open Source Availability openhandsetalliance.com
  4. Android Phones are 10: For once, Google won fair and square theregister.com