It is that the consumer is Google’s product. Android is a delivery system to serve the consumer to Google’s target market — the advertisers. So Google’s customer for Android is not the consumer (with the arguable exception of the Nexus phones), but rather the carriers.
He’s right, and he’s wrong. It’s a bit like saying “magazines are the delivery system to serve the consumer to advertisers” – it’s true, in a literal sense, but it makes absolutely no difference to the qualities of the product itself. Why? Because, like magazines, if the product isn’t attractive to consumers, it won’t attract them enough for it to also be a viable “delivery system” for advertisers. The moment you stop thinking that your customer is the consumer, you’ll fail to make a product that works for your real customer (the advertiser).
Just like magazines, in order for it to be attractive to consumers, Google has to forget that Android is a delivery system for advertisers. Just as magazines developed the “Chinese wall” system that kept advertising and editorial apart, so Google has to have a Chinese wall between the people who develop Android and advertising. Google, like Apple, has to solely focus on the needs of consumers.