Disclaimer: This post, and this blog, is in no way affiliated with Google or their affiliates. I, myself, also do not own any Google stocks.
Recently, rumors have been boiling up about the gPhone with Google’s own operating system. Google, the mighty search engine company had made lots of great moves, some of which includes Gmail, Google Maps, Google Calendar, etc. However, will Google make another big success by moving into the cellphone industry? If Google were to enter the cell industry, how will they distribute their platform? On their own hardware? Or to partner up with other companies? Many rumors have been talking about it, but exactly which ones are true? And how will this affect the Google (GOOG) stock?
Why does Google want to be in the cellphone industry? Don’t we all want to change the cellphone industry? Maybe it is Google to the rescue. If Google enters the cell industry, what are their benefits? Google, being the everything is free, but comes with ads company, will probably put out a Google operating system for either their own phone or other companies. This way, Google will not only be on your computer, but it will also be in your pocket.
Imagine you are just off from work, tired and hungry, and your phone notifies you that there is a pizza shop just around the corner. It is obvious that you will drop by and pick up a slice of pizza. This advertising example is known as Location Based Advertising which is just beginning to enter the market. Most of the location based advertisements are actually on mobile phones. Considering the fact that Google will eventually do this, a lot of rumor sites have suggested that this is Google’s goal – Google pays your bill, and you get advertisements. However, there is another layer to this. The Google operating system will bring users with native google apps, which includes, Google Calendar, Gmail, Google Maps, Google Docs, etc. Every company is always looking for new ways to keep their users to use their service, and Google is not an exception. After gOS gets into your pocket, and you don’t have to pay a single cent for data, you are likely to be using Gmail for your mail. It is right there on your phone – no installation, and very easy to use. Google is creating stickiness so you’ll always stay with them and use their service.
How will Google accomplish this? Rumor sites have been pointing out that Google had joined the FCC specturm auction in the third quarter of 2007 which could give Google the wireless data connection that they need in order to create a cellphone network. However, the auction hasn’t started yet, and it will take place in Q1 of 2008. If Google really got the spectrum, they will be likely to make their own gPhone. Again, rumor sites suggested either they will go with Chinese cellphone makers or with HTC. A lot of people has been questioning: Will Google partner up with Apple? The answer to that is no. At least not after what Apple did to Motorola. Back in 2004, the Motorola ROKR was released as the result of a joint venture between Apple and Motorola. However, it did not go anywhere; in fact, people say that Apple ‘screwed’ over Motorola! The bottom-line is that the likelihood of Google partnering up with Apple is very slim. With all this rumor about the gPhone, there may be a chance that Google may not even be making a phone after all! Google may be just gathering all the current cellphone makers to put the gOS on there, of course, with a lot of money. That is what a lot of people considered as the first step – to put gOS on phones from Nokia, RIM, HTC, etc.
While the story is still hot, Google should choose their moves smartly, and tell the media. Google’s stock has been history high recently with the gPhone rumors, and will reach another high when Google announce their plan. It is totally possible that any one of these scenario could happen. After all, Google is Google!
If you like this article, be sure to visit: http://www.theconomist.net/2007/11/07/google-in-the-cellphone-industry/
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