Google Phone : No Competition for Apple's iPhone, Probably a Boost !

Last monday, Google al long last officially unveiled its mobile phone strategy, or at least part of it. It's no physical device, which comes as no surprise to me as this is not in Google's DNA, but a platform, callled Android.

It consists of an operating system, middleware, a so-called user-friendly interface (remaining to be seen), and applications. Android-powered mobile phones should be available in the second half of 2008.

Thirty-four companies have said they will join the Open Handset Alliance, a multinational alliance that will work on developing applications on the Android platform. HTC, Motorola, U.S. operator T-Mobile, and chipmaker Qualcomm have announced they would join the alliance. Neither powerhouses Microsoft and Nokia are in it, nor Apple as a matter of fact.

Indeed, the software will compete directly with smartphone software from leading companies, Apple, Microsoft, Nokia, Palm, and Research in Motion.

With over a billion mobile phones sold worldwide vs only 250M PCs, and the coming of the mobile Internet, Google had to jump into the arena.

But frankly, as it is today, I have somes reserves, if not doubts, about the venture. In any case, I don't think it will grab much market share away from Apple as the plan is to drive smartphones into the mass market price points under $200, consequently competing in a different segment. Apple will probably, and for a long time, continue to lead the pack in terms of product design and user interface. it will prosper in its own segment, and even probably benefit from Google's initiative which aims at mass-distributing smartphones.

Up to now, the smartphone segment represented around 5% of the mobile phone market. No doubt that, thanks to Apple and Google's initiatives, it will from now on considerably expand.

Comments

[Ludovic Dubost]

I'm much more positive here. Samsumg, LG, HTC and Motorola are in the alliance.. They don't have a smartphone Operating System unlike the one you told about (Apple, Nokia and Microsoft). Palm's Operating System is in bad shape, Symbian is controled by Nokia and is not that cool when it comes to Internet Usage. Microsoft is Microsoft and I doubt many want them to become the market leader. There is no open solution on the market, which can boost the independent vendors not having an OS and even open the market for new handset makers (open market means open competition). And an open solution can be very strong if it has sufficient funding for developping the software. This is the case here. For me this will be a success if Google is fully commited to fund the developpment. Google's interest here is grow the Mobile Internet market by making it as low cost and high Internet experience. If this happens Google will make plenty of money since it's applications are leader. Apple is actually an ally in this strategy but Google can't bet everything on the iPhone since it's too high end and closed and for sure Apple can't be selling all the handsets in this world.

[George]

It consists of an operating system, middleware, a so-called user-friendly interface (remaining to be seen), and applications. Apple built the iphone and the people will come, regardless of what marketing takes place by affiliates etc.

[apbianco]

Take a look at this. Not sure whether all we see on the screen is out of Android, but it sure looks like a pretty cool phone UI (for someone who keeps his cellphone very simple and stupid, anyways.)