Android phone and tablet makers should get on board with a new revenue model, and instead of charging for features, charge for the software, said Richard Branson, the Virgin Group founder and CEO.
It is an opportunity for them to monetize on a bigger scale, said Branson.
“They are going to pay for their apps, for the data they provide, for access to their cloud, and for their cloud.
They are going be the revenue generator.
That’s the real opportunity,” he said at an event at the U.K.’s King’s College London.
Branson also said that he thinks the Android-powered phone industry is “really well positioned.”
“There’s a lot of money to be made in phones and tablets and mobile internet,” he added.
He said he is in talks with a number of handset makers to see how they could leverage the Android ecosystem to grow their business, including Huawei and Oppo.
Android phone maker Samsung Electronics has announced a $300 million Series B round of financing.
The company, which makes the Galaxy S and Galaxy S II phones, plans to open a “high-performance research and development center” in India that will help the company scale up its Android research and innovation.
The Samsung deal comes as Google and Apple have been trying to work out how to make money from their Android operating system.
The Android platform has become the de facto standard for the world’s most popular mobile operating system, and companies such as Apple and Google are increasingly working to make it profitable.
Samsung’s funding, Branson said, was part of an “ongoing push to expand our product portfolio and make the Android platform a more profitable product for the company.”
Samsung’s latest financing will also help it compete with Apple and Microsoft in a key market for phones and gadgets: mobile hotspots.
Branson said Samsung would not be spending any money on devices that don’t have a physical home button.
