Google Inc. plans to hire dozens of software developers to create applications for smartphones and other mobile devices, people familiar with the matter said, a new strategy aimed partly at helping Google counter Apple Inc. in one of high tech's hottest sectors.
The Internet company has begun recruiting software engineers, product managers, user-interface experts and others who have ideas for mobile apps, the people said. Some current Google employees have changed jobs to work on the effort, they added.
World-wide, revenue from mobile apps is expected to triple this year to $15.1 billion, including paid downloads and advertising revenue generated by free apps, according to research firm Gartner Inc. Besides the potential of making money directly from such creations, more and better apps can help devices powered by Google's Android operating system continue to gain ground on Apple's iPhones and iPads.
The Google software is still playing catch-up when it comes to apps. Android users can access an online market with more than 100,000 applications available for download, but Apple's app store has more than 350,000 apps. Apple declined to comment.
Google also has reason to try to spur quality, not just quantity, since getting hit apps first can drive demand for operating systems and devices. Some of the apps developed by Google's new effort may be available only for Android, the people familiar with the matter said. The adoption of Android also helps ensure that Google's search engine, the principal revenue source for the company, and other Google services are prominent on mobile devices.
Google so far has created only about 20 mobile apps in house, and they are largely extensions of its Web properties, such as Google Maps. A few apps, including Google Sky Map, which lets users identify stars and constellations by pointing their phones at the night sky, were started by employees in their spare time.
The new app-development efforts will be scattered across Google's offices world-wide, the people familiar with the matter said. The company, they said, will bankroll small groups of engineers to create a range of apps, from the kinds of games made famous by Rovio Mobile Ltd.'s Angry Birds to services that are based on a user's location, like the popular app from Foursquare Labs Inc. that lets users "check in" with friends at, say, a store or park.
Benjamin Ling, a Google product - management director, has been leading recruiting efforts, the people familiar with the matter said. Google declined to make him available for comment.
By recruiting people who already have plans for products, Google hopes to get results quickly. The strategy fits a broader goal for co-founder and incoming Chief Executive Larry Page: speeding action by a Web pioneer that has become a 24,000-employee giant.
Stakes are particularly high in the mobile market, a focus of frenzied activity among nearly all technology companies. Google's chief executive, Eric Schmidt—who will give up that post and become executive chairman in April—said in a recent blog post that all the company's strategic initiatives this year involve mobile devices.
"Between the geolocation capability of the phone and the power of the phone's browser platform, it is possible to deliver personalized information about where you are, what you could do there right now," he wrote on the Harvard Business Review website.
Google executives in October said the company was on track to generate $1 billion a year in mobile-related revenue, though it declined to provide a breakdown of the revenue sources. Google, based in Mountain View, Calif., last week said it planned to hire more than 6,000 employees this year, and a spokesman said mobile would continue to be an important area for the company.
Android, which was released in 2008 and is available free, powers about 150 different smartphones and other products, such as tablets. U.S. sales of Android devices already are on a level with those from Apple, mobile researchers have said.
Apple, which has developed a handful of apps along with other software that comes on its devices, takes a 30% cut of app-store revenue. So does Google. Apps developed by Google's new lab are expected to be free and might have ads that would generate revenue, the people familiar with the matter said.
Google has been pitching its apps lab as an opportunity for recruits to have a high degree of autonomy while enjoying the benefits of a large company—including a salary and advice from seasoned professionals, the people familiar with the matter said.
"It's uncommon that you get it right the first time, and having connections in the industry helps you," said Blake Scholl, co-creator of Barcode Hero, an iPhone app that lets users review products and get recommendations. He said he hasn't been recruited by Google.
The Google effort coincides with a rush by thousands of Internet professionals and college graduates to quit safe, salaried jobs to try their hand at mobile apps.
"There are many fewer challenges to getting off the ground today than just a couple of years ago," said Sam Altman, CEO of mobile social-networking service Loopt Inc., which has more than four million users.
But the field is more crowded than ever, making it hard for apps to break out, said Peter Farago, vice president of marketing at Flurry Inc., which provides analytic services to mobile-app developers. "The app store already has Wal-Mart-size inventory on a screen the size of a Post-It note," he said.
That challenge could help Google entice developers. A centerpiece of Google's pitch to developers involves the company's distribution power, people familiar with the matter said. Some of Google's homegrown apps come preinstalled on numerous Android devices, and Google can boost downloads for some apps by promoting them in the Android market.
Since Google's own apps could compete with those created by outside developers, the company must tread carefully to avoid upsetting the community, some developers said. "But it's a risk developers are always aware of," Mr. Altman said.
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