Google to launch mobile phone
New York: Google recently announced that it will be launching its own phone by next year, which will be running on Google's Android operating system. This news has raised concerns for the already existing smart phone makers. Analysts say that Google's decision to launch its own phone marks a new push by the company to take on Apple and Research in Motion (RIM), according to Bloomberg.
Last week, Google gave employees an Android handset for testing. The device has a touch screen like the iPhone, and users can search the Web by speaking search terms. Google is focusing on the mobile market as growth in its search-advertising business on desktop computers slows. Phone makers such as Motorola and HTC already offer handsets that run on Google's Android operating system. Having its own device gives Google more control over how the hardware and software works together, and intensifies competition for Apple, said Ben Schachter, an Analyst at San Francisco based Broadpoint AmTech.
"If all of a sudden everyone is getting on the internet via their mobile device, Google needs to make sure it has an influence on that. They need to make sure they have influence on how the mobile Web will develop," said Schachter. He recommends buying Google stock, but he doesn't own it. The Android phone, made by Taoyuan, Taiwan-based HTC, may be available for consumers as early as next year, the Wall Street Journal reported. No carrier has been announced for the device.
According to Sanford C. Bernstein and Company, mobile market may grow to $2 billion - $3 billion by 2013 in the U.S., up from less than $1 billion now. In November, Google announced plans to pay $750 million for AdMob, a mobile-phone advertising startup backed by Google investor Sequoia Capital. Mobile usage of internet have also increased dramatically. The number of mobile searches grew 30 percent in third quarter from the previous three months, Google CEO Eric Schmidt said on a call for analysts in October.
Apple's iPhone models were the second and third most popular consumer smart phones last quarter, according to research firm NPD Group. RIM's BlackBerry Curve 8300 lineup took first place. The newest iPhone, the 3GS, sold more than one million units in its opening weekend in June.
Google needs to attract more consumers to Android phones to spur developers to create applications, said Jeffrey Lindsay, an Analyst with Sanford C. Bernstein in New York. There are more than 100,000 applications available for the iPhone, while Android has more than 12,000. "The guy who gets biggest, fastest gets the most developers," Lindsay said. "It's a fight for scale." Google slipped 0.2 percent to $590.51 in Nasdaq Stock Market trading on December 11.
Google may use the device as a way to show other manufacturers and wireless carriers the possibilities of mobile computing, Schachter said. The company could use Google.com to sell the Android phone, just as Amazon.com used its home page to help increase sales of the Kindle electronic book reader. "Let's say it's not a major success - then it shows what's possible," Schachter said.
Previous Post's: Sensex closes below 17k, down 220 points
