Tuesday, December 15, 2009

Google Phone - Is an Iphone erghhh ITouch Killer

I have been giving a lot of thought to Google's forthcoming launch of their phone - as well as their disruptive model. I just don't see Google pricing themselves out of the market - so expect a VERY subsidized phone. If anyone thinks this phone is a threat to Blackberry or as everyone alludes to - Iphone, don't.

What no one is seeing though is that the Google phone WILL be a category killer...just not in Smartphones. What you are looking at IMO is an Itouch killer.

1) Will be priced competitively with an Itouch (I am guessing sub $200).

2) Can do everything an Itouch can

3) Can do what an Itouch can NOT ie Compass...GPS...Accelerometer... (everything an Iphone can do).

4) does NOT require a carrier (can be used WiFi only just as an ITouch can)

Don't get me wrong, I understand that this is not Google's intent, and they are looking at 'bigger picture' things. Just saying that the Itouch/Ipod franchise will be disrupted as an unintended consequence.

Anyone who does NOT see the real threat has their head in the sand.

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joe c said...

I see you left the word "games" was left out, and that's probably the biggest selling point of the iPod Touch. And sorry only an iPod Touch can do everything an iPod Touch can: functionality might carry across to other devices but design won't necessarily, and the "how" matters as much as the "what" when it comes to using apps.

The potential is there (from what we're guessing at the specs anyway), but Apple certainly won't be standing still. And all this "killer" exaggeration is always overblown; there's no need to kill any business segment to be successful.

James said...

iPod Touch has an accelerometer. It is entirely likely that Apple adds both a compass and GPS to the iPod Touch in the near future. Apple isn't going to stop competing.

The one problem with Google subsidizing the Google Phone is that it doesn't make much financial sense. They get the same revenue from any Android phone and the iPhone/iPod Touch as well. They don't have to subsidize those devices. So where is the benefit to the shareholders? They can subsidize a Google Phone and make less money than by doing essentially nothing and getting the same revenue from every non-Google phone.

There is something missing in all of these analysis's of Google's intentions with the Nexus One.

Steven said...

And if it comes in at a more realistic $500? I think you need to take off your rose colored Googles and re-read what you wrote.

To think HTC does not want to make any money on this device (stripped down parts before assembly will likely be >$250), the assemblers do not want to make any money, the truck drivers delivering it don't want to make any money and Google does not want to make any money is simply too much whacky weed.

The other option is Google is willing to loose $100+ on every unit sold.

Then there is complete lack of good games on Android right now.

While this looks like great hardware, it is not going to come for free like you hope. Add to this, the 1.5 years Android is behind the iPhone in major applications from medical to games and Google still has an uphill climb to topple the iPhone/iPod Touch (what 70+ million units out there now?)