The Google Phone: It's Not Just About Google

I've been watching the sentiments coming out of Google (GOOG) watchers and the Apple (AAPL) Universe on the potential impact of the much ballyhooed Google OS with its maiden launch slated for T-Mobile on an HTC device. Sentiment has been mixed, with some folks saying that this new phone, named the Dream, will be a mediocre first foray with other research organizations saying Android phones will instantly grab 4% of the smartphone market.

These Android bulls, namely, Strategy Analytics, claim that the Dream running Android will sell 400,000 phones by the end of 2008. That's a fairly modest target by iPhone standards but its still a healthy chunk.

What I think many people may be missing in all this is the role of HTC. While it remains a fringe player in the West, in Asia and among a certain set of smartphone fiends, HTC makes some of the sharpest smartphones on the market . The HTC Diamond is glued to the belt of many buy-side tech analysts, who have been wowed but its ease-of-use and snazzy looks.

So while the Google name goes a long way and having Google backing the OS is huge, you might not want to overlook the actual OEM and its potential to put out a phone that really could drive significant smartphone uptake for Android. While HTC may not be the biggest name, its possible that Google and T-Mobile have chosen the right horse to ride in this battle. Should Android prove to be a worthy OS, then it could be an Apple and Google horserace faster than the market might realize.

Disclosure: Long GOOG

Comments

[imurphit:]

I think Apple has nothing to worry about. I think Microsoft would lose share. I hope Google puts out a Linux OS like the phone for the desktop. Then the Game is on. My bet is with Apple (AAPL) stock!

2008 Sep 22 11:44 AM

[JohnKing:]

Google has not been able to monetize anything but Search ads.

Android will be a failure, who needs another phone?

2008 Sep 22 11:46 AM

[jack dee:]

When HTC works with MSFT everyone calls HTC a bit player joke.

TA DA bring goog and now HTC turns into prince charming.


yet another pump goog , when all I see is a great search company that has consistantly failed in every market outside of search.
GOOG is looking more and more like MSFT everyday.

(long goog msft)

2008 Sep 22 12:26 PM

[Tom B:]

"GOOG is looking more and more like MSFT everyday."

Like AMZN, GOOG does exactly ONE thing well. But, for now, that's enough. VERY profitable company. And MSFT does ZERO things well, but does lots of things. Not a great comparator.

2008 Sep 22 01:39 PM

[TA:]

Google is desperately trying to recapture the hype thats slowly draining from it. Something besides search has to work right? So far no and their phone pics do not look enticing.

As for playing this with AAPL stock, it's another sinking stone - can't wait for the hot air hype to come out of this thing too.

2008 Sep 22 01:40 PM

[RLLH:]

I would assume if the phone is a success, the money would be made on HTC, not Google. A nit to Google, an elephant to HTC if it takes off.

2008 Sep 22 02:10 PM

[Brandon:]

I don't see the phone having much of an impact.

Apple is a better long term bet than Google. Yes the stock is a sinking stone, but it's still going back above $200 eventually.

2008 Sep 22 03:56 PM

[D-D:]

It is too early to say how this Android phone will play out. It would be not fair to compare it with IPhone this early in the game
valuestockinvestors.bl.../

2008 Sep 23 09:28 AM

[TwoFingerPoi:]

Google continues to expand it's brand and reach. While the Android phone itself will not bring revenues to GOOG, the ability to prominently place it's brand in front of more eyeballs certainly will.

As for HTC, they have a long way to go to establish themselves as a household brand in the USA. However, Haier also was a unknown manufacturer that is making a name for itself in US consumer products, starting with small refrigerators for chilling your wine collection.

2008 Sep 23 01:20 PM