In search of the Google phonenews analysis Searching for the Google phone is a lot like hunting for Bigfoot.
UBS analyst Arthur Hsieh believes that Taiwanese handset maker HTC will ship 50,000 or so handsets by year's end to developers with the Gphone operating system, according to a recent research note. That's a sliver of the nearly 1.4 million iPhones that have been sold so far, of course, but it's a start. It's likely the Gphone will be advertising-supported given that the company has filed a patent application for advertising-supported telephony, Arnold said. Not only has Google Chief Executive Eric Schmidt expressed interest in the notion of subsidizing the cost of phones with advertising, but the company offers ads on its mobile applications today, said Greg Sterling, principal at Sterling Market Intelligence. Look for applications like "search, mapping, communications like Google Talk instant messaging," with ads, said Charles Golvin, an analyst at Forrester Research. "That's their business model, selling ads." Don't expect a fancy touch-screen interface that would compete with Google partner Apple's iPhone and drive up the cost of the Gphone, experts said. Google may try to do a better version of the Windows Mobile device, only cheaper. If the iPhone is a Lexus, the Gphone will probably be a Honda, particularly if it's supported by advertising. Offering a low-cost or subsidized device would also fit in with the company's strategy to leapfrog with wireless technology in emerging markets, analysts said. "There are going to be a billion or more mobile-phone subscribers in the next few years, and these are people who not only have never used a mobile phone before, but also have never used the Internet before," Golvin said. "Their first experience of the Internet is likely to be on a mobile phone, not a PC." "I tend to feel it will be an operating system and they'll partner with a handset company," said Danny Sullivan, editor of Search Engine Land. "There will be a Google phone. It will be mini-computer-like, the same way that the Windows Mobile Device is." |
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