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Print 7 comment(s) - last by rudy.. on Dec 22 at 11:46 PM
Additional thoughts on the Google Nexus One announcement from a few days ago

As previously noted a couple of days ago, Google announced it will release the Nexus One smartphone in 2010, choosing to go head-to-head with phone manufacturers for the first time.

The actual impact of the Nexus One remains unknown, though industry insiders note Google may anger wireless providers and phone manufacturers that have supported its Linux-based Android mobile OS.

"If the most essential element of your phone is coming from a competitor, it's not good. Not in any industry," said Anil Doradla, William Blair & Company analyst, in a note to Reuters.

I applaud Google for finding ways to stay in the headlines, especially as it expands from the Web to new businesses, but initial thoughts lead me to believe it may be too early for Google to ruffle feathers like this.  Google does have a reported market cap of $189 billion -- with $22 billion of cash -- but the company hasn't established itself just yet.

T-Mobile, which is believed to be the carrier supporting the Nexus One in 2010, obviously is the lone wireless subscriber that may support Google's decision.  

Moving forward, I'm curious to learn how Google operates if it undercuts wireless providers, allowing it to market the Android-powered Nexus One directly to consumers.  Furthermore, will Google be able to find a way to subsidize the devices enough to convince consumers to pay a higher price tag for the phone out the door?

Similar to what some other analysts have said, I think Google is attempting to force the mobile industry to evolve -- putting pressure on manufacturers and wireless providers could be the best way to do it.

Google will continue to promote its Android OS, which is used by HTC, Samsung and Motorola, with Sony-Ericsson, Acer, and LG Electronics announcing Android-powered phones.

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Do no evil
By albus on 12/16/2009 8:37:27 AM , Rating: 4
Introducing unlocked phones in the market will go a long way in saving the American consumer from the clutches of operators.

For a long time, one had to purchase the mobile handset from the operator coupled with a service plan that accompanies the device. This has caused a lot of unhappy marriages. iPhone & AT&T, anyone?

Consumers in Europe & Asia have had a lot of freedom in the choice of operators. Buy any GSM handset. They are sold unlocked at the corner electronics store. Pick the SIM card of choice and start using it immediately.

The latest NSeries devices from Nokia have not reached American shores because Nokia is not willing to dance to the operators' tunes. If Google could change the flow...




RE: Do no evil
By TMV192 on 12/16/2009 9:48:15 AM , Rating: 3
I agree with you there, actually the N-Series has long been here, you can buy it unlocked from Nokia, Best Buy, NewEgg etc, just not in a subsidized form.

I think the reason Google is sticking with T-Mobile as the preferred carrier though is because they have the new contract free plans which go great with this. T-Mobiles new pitch is to sell Phones to people who want a subsidized price by giving them a monthly plan on it, so the price of the phone stays seperate from the plan, so you can cancel the plan anytime you want, and just finish payments for the phone, no ETF required


RE: Do no evil
By aqwan135 on 12/20/09, Rating: -1
Tmobile- you get what you pay for
By Chaser on 12/17/2009 12:53:35 PM , Rating: 2
The "leaked" photos and specs of "Nexus One" reveal a very good looking and powerful phone with rumored Snapdragon hardware. But for Google's first premiere Android phone, TMobile?

TMobile's coverage doesn't rival even AT&T or Sprint's. In my traveling experience coast to coast once you leave a city don't stray too far from the highway or you're at zero bars.

I'll stick with my Verizon DROID.




RE: Tmobile- you get what you pay for
By Levish on 12/18/2009 10:57:53 AM , Rating: 2
I believe this phone will also do VoIP over WiFi and not just the carrier's Data network. So as long as there's wireless internet wherever you'd still be covered.


Verizon
By adiposity on 12/18/2009 1:42:40 PM , Rating: 2
If a network neutral phone helps anyone, it's Verizon. They have been resistant, but then suddenly were the second provider to introduce (2!) Android phones. Why did they do this?

I believe it's because network neutral phones help them more than anyone. Verizon is widely believed to be the most reliable network, if only due to their commercials driving home the point. On the flip side, Verizon is not known for getting exclusive phones or having the best/newest phones (lately, they have pretty much solved this problem, with a couple exceptions, such as iPhone).

But, if a phone is not locked to a specific network, then what is to stop users of that phone from flocking to Verizon the second their contract is up?

Even better, if the phone is bought third party, and the user has a choice of provider, why wouldn't they choose Verizon?

Bottom line, this sort of thing levels the playing field so that the networks on competing more based on their actual network, than their deals with handset manufacturers. It should be a good thing, but probably best for Verizon.

-Dan




Phone carriers like ISPs
By rudy on 12/22/2009 11:46:20 PM , Rating: 2
Phone carriers like ISPs will need to adapt, I believe that much like ISPs eventually we will have separate hardware and service and I will be very happy for the day that phones are something like modern PCs were you can put any OS on it and pin it to any service provider. I think slowly we are seeing this happen but it only happens if very powerful companies like google, M$ & apple force it to happen. Look at the apples app store, New idea? nope not at all danger did that first to bad danger did not have the power that apple had to bully the provider into allowing it to take off. And that is basically what is needed. No company and surely not verizon would ever let someone take the profits on music, and apps in the past. It was only the popularity of the iPhone with forced one carrier to buckle to out compete others. The question is which phone will be the next big thing like the razr and iPhone and be a bargaining chip to force another revolution. Or will Americans ever stop being so short sited that we are never willing to pay full price for a product for a contract free service?




"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer













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