Project Ara Business model

Project Ara will also have an innovative sales and production system. As already said, Google only control the endoskeleton, all modules will be manufactured by others. The business model will be similar to the one developed for Android apps.

Let’s look briefly. Android is an open operating system, any manufacturer can install it inside its smartphone and any developer can realize its app by simply using the Development Kit provided free by Google. However, if developers want to sell apps on Play store, a portion of the profits go to Google.

Google Play

Google Play

We now analyze the business model of Project Ara, according to the information that until now has been disclosed. Anyone can develop the modules, all the information and technical data are free and available online via MDK. For correct operation, the modules will require a certification by Google, and it can be hypothesized the payment of some royalties. In addition, Google will develop an online store where it will be possible sell the modules of various manufacturers. As in Play store, a portion of the profits will go to Google.

The consumer will be able to create its own configuration of Project Ara, starting with the cheapest, called “Gray phone”. It contains a small endoskeleton and the modules required for the basic operation of the smartphone (display, battery, processor, etc..). During or after the purchase, the customer may buy more powerful modules or with new features and new covers, in the traditional point of sale or on online stores.