Verizon's Droid Is the Real Deal 35 comments
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Verizon (VZ) and Motorola (MOT) finally lifted the curtain on their new Droid Android phone Friday. Make no mistake, this is Android’s flagship product, and the first phone that will pose a significant threat to Apple’s iPhone. And it will be available very soon, possibly as early as the end of this month.
MobileCrunch has been tracking the phone, which has also been called the Tao or Sholes, for some time. Just about anyone who has come in contact with the phone can’t stop talking about it. And from what we hear, they have good reason.
The phone is a three-way effort between Motorola, Verizon and Google (GOOG). It looks a lot like the iPhone, and may even be as thin or thinner than the iPhone 3GS. It also has two key advantages over the iPhone – a slide out physical keyboard, and use of the Verizon network.
Unlike previous Android phones, the Droid is rumored to be powered by the TI OMAP3430, the same core that the iPhone and Palm Pre use, and which significantly outperforms Qualcomm 528MHz ARM11 based Android phones that exist today (Engadget has a great overview article on mobile CPUs).
Droid will also be running v.2.0 of Android, with a significantly upgraded user interface.
The Droid poses a different and more significant challenge to the iPhone than any other phone to date. The Palm Pre could have been that challenger, but it lacked the Verizon network, and users were unimpressed with the hardware. According to people who’ve handled the device, the Droid is the most sophisticated mobile device to hit the market to date from a hardware standpoint. When you combine that with the Verizon network, you’ve got something that is most definitely a challenger to the Jesus phone.
And the scary thing for Apple is, it may only be a few months before something even better than the Droid comes out. With the flood of Android devices that are hitting the market, a few are bound to be hits. No wonder Google CEO Eric Schmidt is so bullish on Android right now. Things are about to get very, very interesting.
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This article has 35 comments:
As for the phone, Motorola is old tech. Their moment in the sun is past, kind of like Palm. The real company that will hurt from this is Rimm which will see this phone be the number one pushed phone on Verizon instead of Rimm's blackberries. I would stay long AAPL while short Rimm as a good pair trade.
Awesome screen resolution + android + physical keyboard + verizon = MOAP (mother of all phones)
You guys getting some adrevenue kickbacks from Google and Verizon? Sure looks like it. A handout for sure.
Posting same as I did in another alpha propaganda:
The biggest problem is the average person does not know what droid or Android is and it would take over a year of heavy marketing for anyone to even figure it out.
By that time, more people will be locked into iphone contracts and won't care.
I think that is the basic truth.
And if Verizon killed any ties with future iphone business then they are really gambling and placing a heavy bet on a very unproven and unknown Android which will be commoditized and offered by every carrier to the point of frustrating and confusing customers to no end
It would be hard to bet that Motorola has produced the iPhone killer that the Palm Pre fell far short of.
I want to like you. I want to trust your opinion. But you can't write about Apple with any credibility anymore. Are you blogging here? Are you talking about anything to do with a financial argument? This is an opinion piece from someone who has a pretty static opinion. Ok. You don't like Apple. I get it.
You know what I would like? I'd like you to show me that you could report on market research and show that the demand for android was real. I'd like to see the number of people who are sick of their iPhone and AT&T service and what they are looking at next. These are real things that Apple should be scared of. Do you have ANY real information on it to help inform me? Maybe those things aren't so scary. Either way I wouldn't know from this piece.
Killer line: "With the flood of Android devices that are hitting the market, a few are bound to be hits." Wow. Just Wow. You think this is true. Wow.
Everyone knows that android MAY pose a real threat to Apple. So far, we have yet to see anything remotely close to a sound argument yet. Bring on the open source challenger. Make Apple dance. But, come on, Mike, if you're gonna write, write for real. Do something besides get excited about non-Apple technology because its non-Apple. Or stop. Either way is cool.
2) Verizon always cripples their phones; I'm sure this one will be as well.
3) Physical keyboard? How 1990's. LAME beyond words.
On Oct 18 07:01 PM BertNo! wrote:
> As cool as the iPhone is or may be, with the advertising compaign
> Verizon is running, it seems to assure that the iPhone will remain
> with AT&T, which may be the beginning of the end once iPhone
> owners and potential iPhone owners realize they are stuck with the
> AT&T network. Apps on maps of Venice are cool and all, but at
> some point I'm going to need to make a phone call that has to go
> through.
M/Soft builds an OS and leaves it up the hardware companies to build computers and mobile phones to use the OS. Apple INTEGRATES the OS with the hardware. Android is NOT a phone - it is an operating system - Google is dependent on other phone mfgrs to develop hardware that can best take advantage of Android. Yes, M/Soft has much larger market share, but Apple rules in terms of user satisfaction, feature rich devices.
Also, Apple controls it's own marketing message - Google relies on joint marketing with numerous phone mfrs. Ultimately Google (a company that I admire) is interested not in producing the world's greatest smart phone, but instead in SELLING ads - their OS is all about getting people to look at little ads on a little screen.
Apple is all about a productivity tool with a slick user interface and a coolness factor that other companies haven't figured out yet. Yes, Android will get some market share, but Apple understands the integration of hardware and OS better than anyone.
If Verizon can execute well (a big question I know) they can create a pretty powerful "not the iPhone" choice for consumers, particularly Verizon FiOS customers.
Until recently Apple has had an "easy schedule" of games to play. Microsoft has been crippled by their own lousy execution and Vista, Google hasn't had a mobile offering, Nokia has been MIA on smart phones forever and RIM is great but too tied to business users to get in their way.
Now we have what looks like a decent platform with Android coupled with good phones from Motorola and others and a Microsoft that may have a decent product cycle in front of them.
Doesn't have to be a bad thing for Apple to have some decent competition. Maybe their products will get even better, even faster. Everyone should love a challenge.
Using the iPhone on the AT&T network in NY State, I have never had a problem with call quality & dropped calls. As I am a business world traveler, being able to Roam the world over and have cellular signal is invaluable to me. Even in China, no problems with Roaming on At&t.
Verizon, unfortunately, doesn't work oversees. So your call & connection argument is based on a lack of knowledge & the whole picture.
To be fair, the ONLY place I've had trouble, is VERY slow 3G while traveling in Long Island going to the Airport. Calls no problem though.
Also, to be fair, traveling through the mountains, yes, there are spots I know I won't have reception for a click or two. But isn't that the case with ALL networks? When I was a VZ customer, I had the exact same experiences. They all have some holes, just in different spots.
To sum up: I depend on my phone always letting a call come through. I would not tolerate it if the service was poor on At&t, but it's not, and hasn't been. In fact, overall, it's been excellent.
I've been able to hold 4 way conference calls for over an hour with no call quality issues or dropping.
Again, not taking sides, just reporting my real experience.
On Oct 18 07:01 PM BertNo! wrote:
> As cool as the iPhone is or may be, with the advertising compaign
> Verizon is running, it seems to assure that the iPhone will remain
> with AT&T, which may be the beginning of the end once iPhone
> owners and potential iPhone owners realize they are stuck with the
> AT&T network. Apps on maps of Venice are cool and all, but at
> some point I'm going to need to make a phone call that has to go
> through.
VZ is still a local player, not global.
This phone is a local player, not global, since it's ties to VZ.
They will need to make different keyboard localizations for other countries, when and if they do go global... I large undertaking in software & hardware... so probably won't go global.
RIM has most to fear from this, as it competes directly with it on VZ's network.
Any left overs of WinMo will be killed off by Android & RIM offerings on VZ's network.
To sum up: This will create internal competition only on VZ's network between phone manufacturers. This will not create the intended exodus from At&t or Sprint to VZ.
The iPhone is an excellent Phone & texting device, & an excellent email device.
Further, from an investment point of view: it's global. I can on the fly, choose whatever language or keyboard I want (43 languages). I've been able to loan my phone when in another country to colleagues, and set it in their language to use. Besides the fact that I can place & receive calls in all of these countries.
From someone that actually owns & uses an iPhone.
On Oct 19 09:39 AM robinjoe wrote:
> Not sure why people are sure no one can beat the iPhone. The iPhone
> isn't a very good phone or texting device. So if someone can equal
> it in internet and surpass it in the other two, then they win. They
> will be playing catch up in Apps for a good while, but if there are
> eyeballs the coders will port the iPhone Apps.
Google.
Even though Google has open sourced this Android project and it's "free", Google still owns it.
If they choose to create their own semi-closed API developer model, as Apple has done, then Google would be master over a competing App store. This WOULD be something that could compete with Apple, as well as create demand for Android phones to compete with the iPhone. If they can specify a minimum requirement API model, then having Apps work on differing phones and being able to keep your Apps when changing phones or networks.... well, this might actually do the trick.
For now, Google hasn't shown it wants to or will do this. That means each company is left to it's own devices, which means Android Apps will be fragmented to networks, handset vendors, with specific hardware specs & requirements.
The Android is no doubt a good tech story. People I know who are very excited about this new product line will go on and on about running Linux apps, remote management of networks, multitasking, etc. EETimes and gadget websites will gush.
But, Apple has and will continue to have the profitable part of the phone market - the Mobile professional and the rich/spoiled teenagers - each spending an inordinate amount on their electronic products. They want simple function and/or cool. Moto lost cool long ago, no other smart phone can figure simple function out among their neon colors and confusing menus.
I agree that Apple is priced for perfection, and I no long own the stock. Options would be tempting if the street buys the Droid story and drives Apple stock 10% lower.
I do not own an iPhone, as I cannot justify the high monthly charges. I do own both an iMac desktop and the low end portable. Both perform very well. I also run WindowsXP in a dual boot configuration for 2 specialty programs I need to access about once a month. In the configuration, the advantages of the Apple OS is very obvious. After a virus and malware scan and removal, the obligatory Windows updates, the resulting problems from that update, I cannot wait to reboot the machine into Mac OS and actually get something done. Oh, I feel the need to throughly wash my hand as soon as XP is gone....
It doesn't matter that Goggle or anyone else will come out with something that has this or that feature that might be new... Do you think Apple R&D all went into hibernation for the winter? These people are the best in the industry and they'll be able to keep up and keep leading, overall.
I like the competition because it makes everyone as good as they can be. But in this case, they probably won't end up as good as Apple in the long run. Apple is just an amazing company and they have so much $$$ and customer satisfaction, that they're going to be around for awhile.
Long APPL
or
", the Droid is the most sophisticated mobile device to hit the market to date from a hardware standpoint"
Pick one or is it just the keyboard? Perhaps some other chips?
VZW has been offering CDMA/GSM phones for four years. If worldwide communications is important AND you perceive VZW to have a better network, you can get the phones for that.
Bashing AAPL for its iPhone is also silly. iPhone is a revolutionary phone that has been largely unchallenged for two years. People who perceive a need for that kind of communications will pay the $30-50/mo for additional network services for iPhone.
I agree with those who say 'let the battle begin'. That IS the fun stuff of Capitalism!
Nobody has seen the damn phone in action yet and every Steve Jobs fanboy out there is already declaring it's impossible for anything to ever be better than the iPhone.
Will you guys just chill out
Seriously you Apple fanboys have to be the only consumers on the planet that see competition as a threat and monopoly as a good thing.
1. Will the Droid use CDMA? If so, will users be able to access data (web, email) at the same time that they're making a call? A friend who bought a Pre is rather "disappointed" that he can't do that.
2. What will be the pricing structure by Verizon? What will the phone and service cost?
mark
Verizon's spin will not make their Android phones work any better than Sprint's. Verizon boasts about their 3G network which has a little more coverage than Sprint's but have little to say about their 4G coverage. Spin doesn't carry much of a punch after you cry wolf too often.
Now let us look at the Android phones at Sprint, the Hero or the Moment, both have better hardware than the best iPhone. Both are run on Sprint's 3G network which is substantially larger and better than ATT's (ATT and T-Mobile combined have less than 40% of Sprint's 3G coverage). Sprint already covers 16 markets with 4G and by the end of this quarter will be in 23 cities in the US. In 2010 Sprint will be the only carrier with a 4G Smartphone running on the WebOS and Android platforms. Now that is awesome! What makes it better is that you will be paying 50% less than what you will be paying ATT and Verizon.
Since Samsung has no plans to go with Android, you could sell short Samsung, arguing that their mobile unit will take down the whole company's revenues by 15%.
Windinthedust figures Verizon is a local company. But of course he fails to notice that CELLCO Partnership is Verizon wireless and it is made of of Vodaphone and Verizon (v has controlling interest)
So local... I think not.
On Oct 19 09:49 AM winindthedust wrote:
> Also, from an investing point of view:
>
> VZ is still a local player, not global.
>
> This phone is a local player, not global, since it's ties to VZ.
>
>
> They will need to make different keyboard localizations for other
> countries, when and if they do go global... I large undertaking in
> software & hardware... so probably won't go global.
>
> RIM has most to fear from this, as it competes directly with it on
> VZ's network.
>
> Any left overs of WinMo will be killed off by Android & RIM offerings
> on VZ's network.
>
> To sum up: This will create internal competition only on VZ's network
> between phone manufacturers. This will not create the intended exodus
> from At&t or Sprint to VZ.
Seriously, "Droid" is a horrible name. Just awful branding, except maybe for the geeks that go to Star Wars conventions.
And will people really want a cellphone that is run by a Google operating system? Google is an advertising company. You want a smartphone conceived by a company that makes all of its money from advertising? Really???
I doubt that most people care about a phones OS or heritage very much.
Apple has a tremendous head start in the market. They have access to customers through 200 odd Apple stores plus the ATT stores plus online sales. They have tremendous mindshare in that the Apple brand and iPhone name are extremely well known. Not to mention the App Store which has been a true phenomenon.
Droid will probably do OK as it has no competition from Apple on Verizon. We'll see how reliable it is and if it really works out in the wild.
I'll agree with some earlier posters. I travel a lot on business and use an iPhone. Now and again the network slows down but I've had good connectivity in every major city in the US. Only when you get out in the dessert or farmland does the signal drop off. Now and again I see four bars of signal but very slow internet speeds. In these cases I can still make calls and text.
I'll offer a defense of those touting Apple's seeming invulnerability. Apple has already achieved tremendous market penetration and built a large infrastructure for support. They were able to do this partly because there was almost no competition when they first came out and they were able to piggyback on the support structure put in place for computers and iPods. The competitors like Pre and Android phones don't have that luxury. They have to compete in today's world where Apple already exists as a fierce competitor (and RIM and Palm as well). The Apple App store is a reality that Apple didn't have to contend with when they first came out. Android phones face that reality. Most of all, if Apple gets a hint that any competitor is encroaching on their growth Apple has massive resources in engineering, design and marketing to make a very strong response. They may stumble but you have to like their odds.