Google phone can become ‘backfire’
Google phone can become ‘backfire’
San Francisco – Google allegedly released soon produce their own cell phone, Nexus One. But some analysts considered this step could be a ‘backfire’, because of Google’s strategy injuring expand mobile Web services, if they choose to compete directly with mobile phone manufacturers that use Android operating system.
Google’s great success in the realm of mobile phones mainly from the use of services and web search, which is currently driven Android phone. This could be disrupted if Google offers mobile phone which was competing with one another Android phone vendors.
In fact, Google actually has successfully pulled using Android mobile phone vendors including HTC, Samsung, Motorola to Sony Ericsson, which means expanding their online business traction. Well, they are potentially disappointed with Google’s move to make mobile games, which would make them lose.
In response, Todd Greenwald, an analyst with Hill Group rate signals Google may be ready to bear all the risk. With a huge asset, Google may be able to stand on their own rate if more vendors would adopt Android phone back.
Reported by Reuters and quoted on Wednesday (16/12/2009), there is the question why Google’s mobile phone business into a tight, as they had experienced. Maybe, Google wants to hit that Apple is still strong despite iPhonenya attacked Android phone. But the difference was that Apple had indeed been long engaged in the hardware business.
Please note, the hardware business is very risky. When compared with Google’s big profits from the business online, hardware manufacturers usually only achieve a small profit margin, even at times can be disrupted by excess supply or scarcity of goods.
“Google’s lack of experience in the hardware business may make them difficult to drive just by relying on design alone,” said John Jackson, analyst at Insight CSS. He predicted Google would do certain innovation to win customers. That said, the Google phone will be released in early 2010.
Incoming search terms for the article:
