Google's mobile movement vs. iPhone
updated 04:20 pm EST, Mon November 5, 2007
Google vs. iPhone
Google's recent announcement regarding the Open Handset Alliance (OHA) is set to increase competition with Apple's iPhone, but won't initially offer any features the iPhone doesn't already provide, according to industry analyst Gene Munster of Piper Jaffray. The Open Handset Alliance consists of Google, T-Mobile, HTC, Motorola, and other companies that aim to develop an open software platform for mobile computing called Android. Apple's iPhone is not a member of the new alliance and will not use the new Android OS, but already offers many of the features -- like full Web browsing functionality -- provided by the new software. As a result, Apple has little need to join the OHA and has little to fear from the competition, according to Munster.
"Google's strategy for its mobile platform is an open one, where the software can be freely modified. Apple's strategy is a closed system (with some 3rd party development in February 2008), but the software is fully controlled by Apple," Munster said. "We believe that Android will give many phone makers their first access to software with full web browsing functionality, which the iPhone already offers; therefore, we believe Apple has little need to join the OHA. "
The new operating system will work with many Android-powered devices and Google will facilitate the software development by releasing a software development kit next week. The first devices are due to ship in the second half of 2008, using Android to deliver new mobile technologies to consumers.
The analyst says he expected Google to partner with one or more handset makers to deploy an operating system based on technology from a company Google acquired in 2005, but did not foresee the sheer number of partners -- in excess of 30 -- Google would bring on board. Munster also expected Google to design the platform in a way that could easily integrate its existing Web services and applications -- like Gmail and Google applications.
The analyst firm reiterates its "Outperform" rating on Apple shares with a $250 price target.
Android
11/05, 04:28pm reply
I am all for the cell phone industry adopting a strategy that will push competition and innovation.
These were sadly lacking in the cell phone business, with most being poor upgrades to poor devices and OS's.
The iPhone has made them think long and hard about what they were doing wrong.
ClevelandAdv
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Joined: Jul 2004
Dumb
11/05, 04:29pm reply
I think you may safely bet that its downhill from here for Google. When you wander too far away from your roots, you always lose your path and die a miserable death.
The Mobile industry is not Google's business or strong point by any long shot. This whole project looks like more of a shot in the dark and hope you hit something.
jarod
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Joined: Apr 2005
re: Dumb - Meat Slicers
11/05, 04:53pm reply
IBM used to sell meat slicers.
Google can be thought of as a company that manages information. They do this very well. A Cell Phone OS doesn't have to stray too far from that.
jameshays
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Joined: Mar 2003
this is a non-story
11/05, 06:16pm reply
Google is not competing against Apple. Google is trying to usurp Windows Mobile. End of story. Google can't compete against Apple for ease-of-use and sexiness, and it knows that. It wants to control the rest of the market.
However, I think Google is dipping its toes into the realm of monopoly, and we should all be wary of that.
petsounds
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Joined: Apr 2007
Good points
11/05, 05:38pm reply
Petsounds:
First, you are correct, this is not about Apple. Google is appealing to mobile phone producers by offering them an operating system in which they get to control, as opposed to relying on OSes provided by companies like Microsoft. Since the OS is free, this would also take away licensing fees that would have to be paid to Microsoft. In return, Google seeks to expand its advertising revenue.
Second, monopoly is NOT a bad word provided you 1) legally obtain that status, and 2) do not abuse the status once you get there. However, I agree monopolies typically are bad, but I would prefer Google to achieve that status then to see Microsoft become successful in this area.
Terrin
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Joined: Jan 2006
Windows Mobile, Symbian
11/05, 07:53pm reply
Petsounds is right. Android (dumb name) is a threat to Windows Mobile and Symbian. They are going after the commodity handset business. Android is no more a threat to the iPhone than Linux is a threat to the Mac. The commodity handset makers will beat each other up with Android and continue to push handset margins down. However, I think Android opens up the possibility of new mobile network-connected hardware, and we could see some unique hardware running this Linux-based mobile OS.
sgirard
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Joined: Aug 2005