Cellphone Showdown: Meet the GPhone

It's been awhile since Google (GOOG) played the role of the underdog. Nevertheless, it would be folly to underestimate the tech titan.

Now that the Federal Communications Commission has approved HTC's "Dream" handset -- expected to be the first mobile phone to feature Google's "Android" operating system -- the stage is being set for a four-way showdown for dominance in the mobile phone market.

The combatants: Apple's (AAPL) iPhone, which has proved to be one of the most popular mobile devices ever launched; Research in Motion's (RIMM) BlackBerry, which still leads the corporate and enterprise market; and Palm (PALM), which is showing early signs of a mini-resurgence thanks to its well-received Centro device and early buzz over its Treo Pro model.

And finally, the newcomer: HTC's "Dream," featuring the Android OS, which will be sold by T-Mobile. Yesterday, Google released an updated software developer kit [SDK] for Android, which will allow programmers to create new applications for the operating system, much as Apple as done with the iPhone.

But make no mistake: The HTC/Google "Dream" is definitely the underdog, and faces a monumental challenge going up against the iPhone and the BlackBerry. Nevertheless, the device's impending arrival means the cellphone battle has been joined.

For Google, Android could be a promising revenue source as the company seeks to diversify from its core business of web search advertising. The company has made no secret of its view that the mobile advertising space could be a goldmine for the company.

 "We can make more money on mobile than we do on the desktop, eventually," Google chief executive Eric Schmidt told CNBC recently. That's quite a statement considering the billions of dollars the company currently rakes in from its desktop search ad business.

Google is hoping to serve targeted advertising to users based on their interests and geographical location -- something the company seems will positioned to do thanks to its Google Local Search service.

HTC's Android-powered "Dream" is expected to hit stores by November 10th, right in time for the holiday shopping season.

Comments

[rcprofit:]

What about Nokia? They don't exist? Didn't they just take their operating system business private (what are the stats on that)? I know this story is about Google, and metioning the word Apple will get you more page views, but lets not lose site of Nokia!

2008 Aug 19 08:27 AM

[ShirtaDay:]

Nokia is not a major player in the PDA/iPhone market. The phones they did create for this market mostly flopped.

2008 Aug 19 08:45 AM

[g_skorich:]

At what point do we stop calling these devices smart phones and start calling them hand held devices that make and receive calls? I'm not really sure I would be interested in a device that displays advertising, or am I reading the logistics of the software wrong?

2008 Aug 19 09:35 AM

[scottybe:]

It seems in its efforts to remain a "premium" brand, Apple has mostly stayed away from getting in the ad business. Sure, they list "top picks" on iTunes, but that's not quite the same thing as displaying another NetFlix ad. Apple knows that ads cheapen products.

And, just as important, ad revenues are unpredictable. They don't want their stock value tied to the marketing decisions of other companies.

2008 Aug 19 09:58 AM

[NW Tech:]

Google is great at making a splash within the search realm. Google is NOT at all great at anything else. Let's see what happens in 3 years.

2008 Aug 19 12:59 PM

[brewer:]

Nokia and palm are out of the running. I don't give Google or RIM a lot of chance to keep pace with iPhone, either. The devices are more different than they are similar. I do expect Android to be more like iPhone than a simple email/calendar device like RIM or Palm.

You will be able to browse well on the gphone, but I don't expect it will fit your pocket very well, and I can't imagine having ads on the thing, other than the normal ones when browsing. Maybe that is enough, since that is where Google makes it's only money anyhow.

2008 Aug 19 01:34 PM

[petej:]

In Q1 2008, according to Gartner, Nokia sold 14.6m smartphones and clearly holds the number 1 spot. The next closest was RIMM with 4.3m units. - Source: Gartner via Washington Post

To leave Nokia and the Symbian platform out of your report clearly negates any credibility here.

2008 Aug 19 01:39 PM

[citetez:]

Ok, there is an Android phone. Other than the association with Google, what is supposed to make it special?

2008 Aug 19 04:14 PM

[Jazzkeys:]

I don't think the Dream will be an underdog for long. HTC currently makes the most powerful Pocket PC's worldwide, and many people have been waiting for an "Android" phone. Too bad this is on T-mobile and not A&T.

2008 Aug 19 04:17 PM

[ShirtaDay:]

Ok, to clarify, Nokia is not a player in the smartphone market in the US.

The Apple iPhone is not a suitable device for use in a real workplace. You can't receive e-mail in real-time. Their push e-mail is a joke compared to a BB enterprise server. The iPhone may dominate regular users and casual business users, but true business users will stick with the BB and Palm.

2008 Aug 19 11:58 PM