The short history of the wireless Web has been largely pioneered by Apple Inc. and Research In Motion Ltd. The rapid rise of their smart-phones has helped loosen the grip of old-guard online giants, such as Google Inc. and Microsoft Corp., as Web users spend more time on their mobile devices and less on PCs.
No longer. Yesterday, Google moved to put a significant dent in the reign of those other companies and assert its place as a dominant force in the mobile Web market by introducing the Nexus One, a powerful "super" smartphone that the Mountain View, Calif.-based company will sell directly to consumers online.
"Nexus One is where Web meets phone," said Mario Queiroz, vice-president of product development on a webcast from Google's California campus. The question analysts are left asking is, will the Nexus One succeed where other similar attempts have faltered.
Two years ago, Google created the Android operating system, an open-source software that fit snugly into mobile phones made by Taiwan's HTC.
Google hoped Android would entice companies and developers to abandon making apps for Apple and others and craft them for Google's system, making its device coveted among cellphone carriers and Google the starting point for mobile users.
Other vendors joined in. Samsung Electronics and Motorola Inc. have partnered with Google to push the Android into new markets.
Yet sales growth has not matched that of either the iPhone or BlackBerry. Neither has application development: Apple boasts more than 100,000 third-party apps to Android's 18,000.
The Nexus One, a thin handset with a 3.7-inch touch-screen that mirrors the iPhone's appearance, takes the "next step in Android's evolution," Mr. Queiroz said. It "belongs in a class of devices which we call super phones [and] it's the first ... in a series."
Google will sell the phone directly to consumers, unlocked for US$529 via a new Web store. A subsidized Nexus One is now available in the U.S. with T-Mobile USA. Verizon Wireless Inc. and European carrier Vodafone Group PLC will begin selling it this spring.
Yet analysts are wary of the hype. On a device-to-device basis, "It's not an iPhone killer, no doubt," said Andrew Seybold, chief executive at Andrew Seybold Inc., a consultancy in Santa Barbara, Calif. The price is still prohibitive to most consumers, too, he said.
The handset itself remains secondary to Google. "It wants to make a smartphone for users which ultimately will drive its core business, which is Internet ad revenues," said Kevin Restivo, a mobile technology analyst at IDC Canada.
The Nexus One is still made by HTC of Taiwan but with the added assistance of Google engineers. It is not an attempt by Google to break into the hardware market.
Online advertising is quickly being developed for mobile devices, and Google is moving to transition its traditional economic engine--ads placed around search results on a PC -- to a mobile world by ensuring it holds a strong presence in mobile software and apps.
"When you go to Google and search for a product or for Amazon, that's a way for Google to make money," wrote Ben Schachter, an analyst at Broadpoint AmTech in a note. "But if you have the Amazon or eBay app on your mobile phone home screen, you are more likely to click on that button and buy something without ever using Google."
By having its own mobile "eco-system," Google is doing that. Timing is of the essence though, Mr. Restivo said. Most North Americans still use traditional cellphones, which means Google has a ripe chance to grab share.
"The window of opportunity for smartphone makers is really in the next three to five years. If you're going to remain a long-term player in the market you need to make a dent in it right now," Mr. Restivo said.
The Nexus One is not available in Canada yet. Wendy Rozeluk, a spokesperson for Google, said that while there was no timetable, discussions were occurring with carriers.
News Source:- http://www.vancouversun.com/
<< Back to news...