Google Nexus One

No longer an issue of hardware:

Stacked up side by side the Nexus One has better hardware than the iPhone but that is a meaningless fact as Apple can ultimately upgrade iPhone’s hardware for future releases. Differentiating phones by upgrading hardware as the unique differentiator is a strategy doomed to failure similarly to what is happening with desktop computers. Image and price will take a bigger part in the decision making process. Over time, and maybe it has already begun, consumers are worrying less about hardware and more about features and image.

An iPhone killer? Irrelevant question.

The argument for whether this phone is or isn’t an “iPhone Killer” is tired and irrelevant at this point. IPhone’s clout has expanded beyond the design and ease of use that originally propelled it to its current status. The most dominant features of the iPhone today are the status symbol it projects (its brand image) and the applications available with it (flexible and expressive). Although the Nexus One name and Android’s available applications are no match for the sexy design and image the iPhone portrays, those points are liable to change in the future.

Question: What may be the reason(s) Google entered the mobile phone market?

Answer: To promote and distribute Android and ultimately increase Google brand awareness while driving advertising and opening doors for other revenue streams.

1. Anything that Google does or promotes gets attention. By entering the mobile phone market Google shows its commitment to the mobile industry thereby gaining customer and partner attention.
2. Google is using Android to go after the mobile OS market just as Microsoft Windows went after the PC OS market. By having Android where smartphone owners are Google can increase its contact and access to customers.
3. Android is a “mobile operating system” meaning it is not limited to smartphones. There are numerous mobile devices, some in development, that require a mobile operating system which include:  laptops, netbooks, tablets, media players, automobiles, and more. If Android can become THE mobile operating system for these devices it can be extremely beneficial to Google.
4. Advertising and search are what Google does well. As mobile phone usage increases, new mobile advertising methods and traditional adverting methods will increase as well. The Nexus One gives Google the opportunity to completely guide the mobile experience and funnel traffic to its services.

For Google the Nexus One is a play for Android, advertising, and strategic positioning.