Google Phone OS No Slam Dunk - Barron's

Barron's Plugged In editor Mark Veverka says Google's recent foray into the multi-player game of mobile OSes is far from the slam-dunk some people automatically assume when they hear "Google" and "search" spoken in one sentence. The key difference between Google's unprecedented dominance in web search and its current open-source attack on wireless search, he says, is a crippling lack of much-coveted technology patents. Unlike web search, Google is late to the mobile search party, and without any mobile-phone software patents of its own, in an arena where its competitors boast hundreds, it stands exposed in the "adversarial world of mobile-wireless intellectual property." Even open-source efforts can be thwarted by expensive and time-consuming patent litigation, not to mention consumer reluctance to embrace open-source and its potential for weak support, reliability, and security issues. While Google with its massive $217B market cap may ultimately decide to obtain patents through acquisitions, competitors like Microsoft and incumbent Nokia are not likely to go down quietly.

Sources: Barron's
Commentary: Google's Mobile Software Platform Threatens The PC Itself • Google Enters Wireless Market with Android OS • What's the Point of Google's Phone?
Stocks to watch: GOOG. Competitors: NOK, MSFT, ERIC, RIMM, PALM, MOT, AAPL
Earnings call transcript: Google Q3 2007

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Comments

[Alex L:]

Before Google came up with it's search engine, there were already a few other popular search sites. Google, however, became the best. I think that Google has even better position for mobile search. Mobile Web and software are still in it's very early stages and there is little in the way of standard search or other software.

2007 Nov 11 10:04 PM

[Tom B:]

Google Phone will be rapidly forgotten. But, I don't think GOOG's "betting the farm" on it, in terms of cash investment. Thus; I'm holding my GOOG.

MSFT has blown money on lots of hopeless non-Windows/Non-Office ventures -- XBox, WebTV, MSFT "Bob", anything involving the web (MSN-live, Passport, Internet Explorer, "dot-net", C#), Windows Mobile--yet they just had a profitable quarter.

2007 Nov 12 08:56 AM

[Tom B:]

Google Phone will be rapidly forgotten. But, I don't think GOOG's "betting the farm" on it, in terms of cash investment. Thus; I'm holding my GOOG.

MSFT has blown money on lots of hopeless non-Windows/Non-Office ventures -- XBox, WebTV, MSFT "Bob", anything involving the web (MSN-live, Passport, Internet Explorer, "dot-net", C#), Windows Mobile--yet they just had a profitable quarter.

2007 Nov 12 08:56 AM