They also collect licensing fees when phone makers use the Android name, Google trademarks and Google's software in the phones.
Is that accurate? Everything I've seen has indicated that if anything money moves the other way - Google sharing revenue on platform ads (and possibly other services) with oems and carriers. I haven't seen anyone claim that oems pay licensing fees to google for google apps and trademarks - I believe they are use granted based on platform spec compliance.
I assume their foray into mobile phones is to fragment the market and prevent any other player from gaining a dominant market share.
While undoubtedly google doesn't want another player to dominate the market, I believe the primary goals for android were to increase global pageviews, drive mobile adoption, and to avoid large upfront costs of paying for placement as the default search engine.
"With a high-quality open platform in hand, we then returned to our goal of making our services available on users’ phones. That’s why we developed Android apps for many of our services like YouTube, Gmail, Google Voice, and so on. These apps are Google’s way of benefiting from Android in the same way that any other developer can, but the apps are not part of the Android platform itself. We make some of these apps available to users of any Android-powered device via Android Market, and others are pre-installed on some phones through business deals."
The phrase "pre-installed on some phones through business deals" is at least suggestive that Google is being paid for the inclusion of their apps on phones.
I think rather the opposite: OEMs sell desktop real estate. You think Dell pays for antivirus? I think they get a fat fee upfront for even thinking of you, and then a per-conversion affiliate payout.
This is similar to many mobile softwRe arrangements in the pre-iPhone world.
To qualify for Google branding and to use the Android trademark and ship with the android marketplace a manufacturer has to comply with the "Compatibility Definition Document" - a platform spec document that includes some software behavior and a number of hardware features. including high speed wireless data, an X MP camera, a compass, acelerometer, touch, a standard screen res, etc.
The nook if memory serves lacks a camera at least so they didn't qualify.
Note that this doesn't say you get access to all google apps like navigation - it does appear another agreement is needed for those - I just don't know if that is a pay for access by the oem or some other arrangement.
They also collect licensing fees when phone makers use the Android name, Google trademarks and Google's software in the phones.
I assume their foray into mobile phones is to fragment the market and prevent any other player from gaining a dominant market share.