The Google Phone’s Target: The Traditional US Mobile Market

There was a huge shift over the weekend in the mobile blogosphere.’a0 After years and years of obsession with Apple’s iPhone, the blogs over the weekend went crazy in discussion talking about a new Android phone.’a0 Even though there are 10 or so Android phones on the market, the ‘Google Phone’ has captured the attention of mobile enthusiasts.

So far, here is what we know about the Google phone:

  • Although HTC is the manufacturer of the device, Google has been in on the development of every aspect of the new device.
  • It will support T-Mobile USA 3G bands as well as standard bands in Europe.
  • It has Wi-Fi, will accept a MicroSD card, and has a huge OLED screen.
  • The device is officially called the Nexus One and features a 1 Ghz Snapdragon processor for Qualcomm.

Thus far, this device sounds intriguing, however not revolutionary, yet.

So, what is so different about the Nexus One?

The iPhone will forever be known as a game changer because it altered the way mobile phone manufactures and carriers interacted.’a0 In 2007, Apple changed the game by asserting itself and taking much of the control out of the hands of carriers by dictating how they would manufacture, market and sell applications for the iPhone.

Google is again changing the game, but in a different way.’a0 You see, they’re not offering a new device category or software side that makes the “Google Phone” approach different.’a0 Google is altering the game in the United States with they *way* they’re building and selling their Android handset.’a0 They are doing this by taking the carriers out of the product development equation altogether by building an unlocked GSM handset.

You see, in the United States, we’re absolutely addicted to carrier subsidies.’a0 Our mobile phone experience involves buying otherwise expensive phones (such as the iPhone, whose actual cost is $599) and being tied down to 2 year service agreements whereby our carriers give us a phone for $99 or $199.

Therefore, if Google offers a capable smartphone for under $200 (the rumored price is $199) that is an unlocked GSM phone, this would be a huge step forward and would give the US market a new perspective on buying mobile hardware the way the rest of world does – sans a mobile carrier contract.

In the same stroke, Google would be planting mobile handsets into the hands of willing customers.’a0 Google would gain because they get more Android handsets out into the market and they further thee company’s reach into yet another market.

Are you excited about the Google Phone aka the Nexus One?’a0 Lets discuss below in the comments!

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