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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 theapparition on 8/6/2007 6:35:08 PM , Rating: 2
You can prove or unprove anything statistically with the right set of conditions, but that another issue.

There is absolutely a placebo effect, in that early adopters of expensive technology will often overestimate the value of the purchase to offset feelings of buyers remorse. In this case, they have to justify to themselves the purchase of this phone. There's the apple effect, which to apples' credit, has a base of the most loyal customers out there. Add that to the fact that owners have only had this for 1month, and it is not statistically valid. Perhaps, it would be more valid, if the same comparison was done 1month after the latest blackberry release (for example). Time and early adoption out of the equation, we'll see how the iPhone stacks up in the long run.

The article also states that 16% of people will switch to the iphone rather than renew current contracts. Are you prepared to agree that the iPhone will have 16% market share in 2 years? That's even blowing Apple and ATT's estimates out of the water.


RE: Interesting
By theapparition on 8/6/2007 6:46:40 PM , Rating: 2
Worth further note that not all of the 3,003 people surveyed had iPhones. Out of that 3,003 only SOME owned iPhones and reported 77% satisfaction. The others owned the phones from motorola, blackberry, samsung, etc. Now that statistically small sample is getting much smaller. The article didn't break down the exact numbers, so who knows, but it could be something like 7 out of 9 liked the phone, which 9 people is not statistically valid. Or it could be that almost all have the iPhone, but that would skew the unfavorable results of the other phones. Without proper numbers, I tend not to believe the conclusions.


RE: Interesting
By masher2 (blog) on 8/7/2007 1:06:03 AM , Rating: 2
> "The article also states that 16% of people will switch to the iphone rather than renew current contracts. Are you prepared to agree that the iPhone will have 16% market share in 2 years? "

You've made a few mistakes in coming to that conclusion. First of all, the 16% figure isn't of all consumers, but only those who are planning a new phone purchase. A large segment of the market keeps a phone for 3 or more years. Second of all, a person "considering" an iPhone is not one who will definitely purchase. Taken together, these two facts mean the survey does NOT imply a 16% market share for Apple in the near future.

You can deny the figures all you wish, but the simple fact remains that no mobile phone has ever scored such a high customer satisfaction rating, not since ChangeWave began taking statistics. The actual number of those "extremely satisfied" may be above or below the 77% figure cited, but its undeniable that most iPhone owners are very happy with their purchase.


RE: Interesting
By theapparition on 8/7/2007 9:09:18 AM , Rating: 2
quote:
You've made a few mistakes in coming to that conclusion.

Yes, after posting I re-read the article and see that it was 16% of changewave alliance members, which is not indicitive of the general market. So I retract that. Oh for an edit function.

However, without proper explanation of the numbers, we don't know how many iPhone users particiapated, which calls into question the statistical relevance of the study. Which you touted but failed to address.

I'm sure a very high percentage was happy 1month after their blackberry purchase, too. It's only after thousands of users and many years has that rating stabilized at 50%. I'm only asking, before believing any numbers, we let a proper analysis happen.

Personally, I could care less whether anyone is happy or displeased with their purchase. I Just know its not relevant to compare a new product verses established products with varying product lines. For example, comparing to Motorala, they have hundereds of phones, some have been outright lemons. You want to compare apples to apples (pun intended), that is Motorola's top end device vs Apple's top end device, after 1 month of service (initial quality) with the same carrier to accurately compare results. Anything else is just marketing fluff. Surely you can see that.


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