Thursday, August 2, 2007

The iPhone is, like, SO yesterday

The iPhone has left a gaping hole in the tech world. I mean, what are we supposed to talk about now?

The gPhone, of course.

Rumors, reports and other commentary about the mystery device have been swirling lately, including articles from Reuters and the Wall Street Journal.

Apparently Google has pumped "hundreds of millions of dollars" into developing its own mobile phone with (possibly) LG which will head to T-Mobile in the first quarter of 2008.

The possibility of a Google Phone, complete with all their apps (Gmail, Calendar, Reader, Picasa, Blogger, Maps, etc.) and presumably unlimited data and wifi like the iPhone is, if I may sound like a total geek for a moment, mouthwatering. Especially since it's assumed the service will be partially, if not completely, subsidized by advertising. Read: cheap or free cell phone service.

The real kicker though is that reports say Verizon turned them down.

I don't know who's been making the decisions over there lately, but where the heck have they been smoking? First you turn down the iPhone. Then you tell Google, which is almost certainly going to be as dominant in mobile advertising as it is in web advertising, to take a hike?? I don't get it.

Anyone out there know what Verizon is thinking? Leave word in the comments.

3 comments:

  1. Personally I'm not into the google phone thing (maybe I'll have to see it first). Google's interface design is inconsistent, cheesy and often awkward. Google has solid concepts when it comes to UI, but is way off when it comes to consistent execution.

    I doubt I'll want a phone with a terrible interface AND advertising on top.

    Of course I could be wrong, Google's search is so accurate that makes using anything else tedious. I'm just not a fan of google's apps and think they would be worse on a phone.

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  2. Verizon's decision might not have been so crazy. Here's my thinking:

    First, AT&T isn't making as much money as you thought on the iPhone because Apple's deal involves a lot of kickbacks to Apple for each service contract. And iPhone sales have been lower than expected. So passing up the iPhone may have been in Verizon's best interest, since their main selling point is wide coverage, not fancy phones.

    Second, the "Gphone" may have come with considerable strings as well. Google's recent announcement about its proposed bid for the 700 MHz spectrum came with a demand that the FCC open up the spectrum, including support to third parties. Google may have had similar openness demands for Verizon that the company didn't want to accept. The big wireless providers are notorious for their iron grip on the spectrum, enforced through proprietary and exclusive devices and services. The last thing they want is to lose marketshare to open services.

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  3. Hugh - While Google is no Apple when it comes to UI, I would relish the idea of having all the Google Apps on my phone - full versions (which is what I dream about, although by no means a guarantee). And when I say "phone", I'm picturing something more like the iPhone than anything else that's currently out there.

    Peter - I see your point, but while iPhone sales have been "lower than expected", AT&T has still signed 200,000+ two-year contracts because of the iPhone and Verizon hasn't. Plus I see this version of the iPhone as one for early adopters and I'm guessing future versions will be much more profitable for them.

    On the gPhone front, all I can say is "adapt or die." I really don't see Verizon (or any wireless carrier really) doing anything innovative. Sure they're slowly bringing 3G to the market, but they seem to think ringback tones and over-the-air downloadable music is noteworthy.

    If they see Google as a threat (which they definitely should) I think it might be wiser to keep your friends close and your enemies closer.

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