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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 masher2 (blog) on 8/6/2007 9:46:44 AM , Rating: 5
> "Google just continues to be "hot"; current products stay hot, it enters hot new markets, makes old markets hot again, and continues to attract the cream of the crop "

Google has indeed entered many new markets, but its only making a profit in two areas: ad/keyword marketing, and by using its massive stock price to purchase existing companies.

Its wholly new ventures certainly have attracted a lot of buzz, but they're not generating much in the way of dollars.


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