Actual finance blog

September 24, 2008

T-Mobile to launch new Google phone

Filed under: economics — Tags: , , — Professor Besto @ 5:39 pm

Google Inc.’s announcement last year that it would give away software that could run cell phones was met by dizzy accolades from analysts who thought it would let the search engine company conquer the world of mobile advertising.

Fruit of that announcement is set to drop: T-Mobile USA will reveal Tuesday the first phone to use Android, Google’s software platform.

But a lot has happened in the world of cell phone software in the intervening year, and Google looks set for an uphill battle in trying to capture the desires of consumers and wireless carriers.

Research firm Strategy Analytics estimates T-Mobile could sell 400,000 phones this year, giving Google about 4 percent of the U.S. market for "smart" phones, a category dominated by Research in Motion Ltd.’s BlackBerry phones with competition from Apple Inc.’s iPhone, Palm Inc.’s Treos and Centros, and phones running Microsoft Corp.’s Windows Mobile software.

The new phone, called the G1 according to T-Mobile’s invitation, is widely expected to be a design from HTC Corp. of Taiwan. Based on previous Google demos of its software, it’s assumed that it will have a touch screen and a slide-out, full-alphabet keyboard.

The Wall Street Journal reported last week, citing unidentified sources, that the phone would sell for $199 and carry the Google brand absolutely free credit report. It’s likely that the phone will go on sale in a few weeks. Other details are scant, and it’s not clear exactly what the phone will be capable of, but Web browsing and e-mail are safe bets.

"This is the right moment for Google to answer some of the big questions that have been outstanding since Android was announced," said Morgan Gillis, executive director of the LiMo Foundation, which has created a rival cell phone software platform. "What will the consumer do on this handset that can’t be done on other handsets?"

The LiMo Foundation is behind one of the developments that has undermined the prospects for Android. In May, Verizon Wireless said LiMo, or Linux Mobile, would be the "preferred" software for its phones, starting next year, joining some European carriers.

Like Android, LiMo is based on Linux computer software and is given away free to phone makers. But the LiMo Foundation is designed as consortium of industry participants to assuage their fears that a single company would dominate phone software, like Microsoft does on PCs.

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