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Google does not have to dominate the smartphone business; they just have to make sure that there's an environment in which the business of selling ads thrives. While Apple wants to dominate smartphones, Google undeniably dominates online ad sales--and they clearly see ad placement on mobile as a huge opportunity. Conversely, failure to dominate mobile ad sales would be disastrous. At best, it would limit their potential; at worst, if we're heading for the end of the "desktop/laptop era", it could seriously threaten their core business.