Print 40 comment(s) - last by S3anister.. on Aug 14 at 9:04 PM

First Apple, now Google -- who's up next for the phone game?

According to a story published in the Wall Street Journal, Google continues its development of the GPhone, a new prototype mobile phone that could be available to consumers within a year.  The Journal cited "people familiar with the plans" who claimed Google is showing the prototype to mobile phone manufacturers and mobile carriers.  So far, T-Mobile and Verizon Wireless have been the only two carriers approached by Google.

The company already has invested "hundreds of millions of dollars" into the project, according to Journal sources.  Users will likely get a free subscription because Google plans to bundle advertisements with several of the phone's applications.

Even though Google services are already available on a number of phones, this report indicates a further expansion into the world of mobile phones.

"What's interesting about the ads in the mobile phone is that they are twice as profitable or more than the nonmobile phone ads because they're more personal," said Eric Schmidt, Google Chief Executive.

The report indicates Google's main goal behind the project is to snap up a big portion of the growing advertising market for mobile phones.  GPhone users will reportedly be able to use the Google search engine, e-mail, WiFi, Google Maps, along with GPS and camera abilities.

Google still refuses to turn over any solid information about the possibility of a Google mobile phone, but has said it is is working on products that can be used on mobile devices.

While the popular Apple iPhone relies heavily on initial sales from the $499 or $599 price tag, Google would collect revenue dollars through various advertising channels.

In an official statement published by Google, the company neither confirmed nor denied the reports of a GPhone.  The company admitted it is working with mobile phone carriers and phone manufacturers, but did not go into specifics.

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RE: Interesting
By rdeegvainl on 8/6/2007 1:51:20 AM , Rating: 2
Apple will not lower it's prices in the face of a direct competitor.
Look at all their products. Apple is a company that ignores conventional business standards and still makes incredible money. They are an anomaly of the corporate world.

RE: Interesting
By Ringold on 8/6/2007 3:59:31 AM , Rating: 2
I dont know.. their computer business stays within the realm of sanity in pricing compared to the PC competition, but their iPods simply face no credible competition. Not to say there arent better products, but when the company fails to make it sell, well, there's no credible competition.

A gPhone, on the other hand, would be a direct challenger. What happens when two of the largest icons in the realm of Geekdom face off in the realm of the radio spectrum? The universe may collapse, for one. But if the gPhone is just as appealing as the iPhone, Apple would either respond or be left with nothing but it's tiny cohort of hard-core followers that never left them (nor bathed) through the 90s. I think Jobs is a man out to win my capitalist heart, so he'll respond for sure, either on pricing or making the iPhone somehow better.

RE: Interesting
By rdeegvainl on 8/6/2007 7:14:44 AM , Rating: 2
But the reason the Iphone is hot, is the mass following it got with the Ipod. Even if the Gphone is a great product it will still not affect Apple very much. Maybe after the Gphone takes a lead position for a couple years if it can do that, but by that time there will be another model of the iphone and the older ones would have dropped in price already. Look at the current Iphone, It doesn't use G3, has exclusivity to certain plans with ATT, doesn't allow user created apps. I would imagine that the Gphone would be all about the best and most open it can be. And there is where I think they are targeting different audiences. Iphone would go after the Elitist and ignorant(not an insult, just a statement as to people's priorities with technology, and lack of understanding) people who have to have the BIGGEST BEST THING, and a Gphone would be more reasonable priced and go after those who know what to look for and what they want.
My guess is that unless the Iphone does bad, irregardless of the Gphone, they will drop the price. and that Apple will not base their prices on the success of other platforms.
They've been doing their own thing and doing well, even if the competition is doing another thing and doing better.
But Gphone may still surprise us. Though i am kind of interested in openmoko.

RE: Interesting
By idconstruct on 8/8/2007 12:23:20 AM , Rating: 2
Iphone would go after the Elitist and ignorant(not an insult, just a statement as to people's priorities with technology, and lack of understanding) people who have to have the BIGGEST BEST THING, and a Gphone would be more reasonable priced and go after those who know what to look for and what they want.

You ripped those words right out of my mouth :P

well said

RE: Interesting
By MykC on 8/6/2007 7:56:43 AM , Rating: 2
That not true, Apple will lower the price of the their products in the face of competition. Just before the Zune launched they cut the prices on the hard drive based line of Ipods.

RE: Interesting
By iFX on 8/6/2007 10:43:39 AM , Rating: 2
The iPod saved apple - years and years of charging whatever the heck they wanted for their PCs nearly put them our of business - TWICE.

Without the iPod apple is nothing - the truth is people across the globe aren't chomping at the bit to buy apple PCs - and they never have. This isn't a judgement against their technology or quality - just one against their sanity. Apple makes a fine PC - people just don't seem to want them all that bad.

"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone
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