March 21, 2007
Another Brick for the Bridge, This One Starts with a ‘G’
When the rumor mill started churning the winds of the iPhone, Apple’s stock experienced marginal gains. Stock price is a function of action (i.e. talk is cheap, rumors are free). Apple, Nokia, Samsung and just any company remotely related to cell phones are currently entering the mobile hardware market, the question is why?
If you want to buy a cell phone, there are two tiers and a considerable gap between the tiers. Consumer grade phones are the cute phones prevalent in the soccer mom and teenager stereotypes. Business phones are the keys cards in corporate America, in the suit pockets of all industries. Business phones offer constant connectivity to content but at times lack in style as well as broad functionality. Consumer grade offer the basic phone functionality bundled with lifestyle features such as voice recognition and cameras. Consequently, there is a gap with certain niche smart phones filling the gap between consumer and business. This market can be expanded at a rate of $299 per phone, quite the metaphorical carrot.
Rumors started early last week about Google producing a phone, similar to the iPhone, but targeted for the more mainstream market. The high price tag and the lack of functionality will limit the iPhone to niche markets where the applications of its specific advantages justify the price.
Google confirmed in a Spanish interview late last week that 100 Googlers have been investigating methods to expand Google’s presence in the mobile search market. The goal, more user connectivity equals more searches which generates more advertising revenue for Google. So what makes Google’s entrance into the smart phone market any different from Nokia or Apple? Google’s applications, search, business models, internal operations, all symbolize one adjective: simple. Google’s email Gmail turns the complex world of email into a simple web based application. Google’s calendar web app consolidates all appointments across an infinitely large team into one streamlined, easy to interpret display.
Only Google can offer bundling with a suite of web-based applications. Microsoft mobile is nice, but data remains in a solitary location, with Google presentations, documents, spreadsheets are readily accessible from anywhere that you have cellular service. This is functionality that appeals to both consumers and firms, this is why Google will not only complete the other side of the Apple coin. Google owns the metaphorical coin.
Posted by jwbir at March 21, 2007 12:50 PM