The Google Phone: A tactic without a strategy

January 5th, 2010

As you may have heard, Google had a big press conference today to launch what has become known as “the Google phone” – a.k.a. the Nexus One.

During the McCain/Obama debates, there was some discussion of the difference between a tactic and a strategy. If Google has a strategy behind their latest tactic, I don’t get it.

It’s not clear what exactly the Nexus One is supposed to be. Google’s model with Android platform has been to develop the software and give it away for free to handset makers, who use it to make devices like the popular Motorola Droid. Business model? Not clear, but one idea is that it drives use of Google’s services, which can in turn drive profit through add revenue.

Well maybe that wasn’t enough, because now they’re selling the Nexus One directly to customers. But didn’t they say they weren’t going to make their own phone? Wouldn’t this anger other Android makers like Motorola?

Google is quick to say that the handset itself is made by HTC. So what exactly is the special role Google is taking here? They had a big press conference today focused on its launch…will they do they same for other companies each time a new Android handset is launched? That’s a rhetorical question – they haven’t and the won’t.

It makes the whole point of today’s press conference, and Google’s overall Android strategy, all the more confusing. My take: they are making this up as they go along, and there’s no adult supervision driving the ship here.

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  • It still seems like a half-baked idea. They choose some phones to sell directly, while others don't have that advantage? Independence from the carriers is a nice ideal, but in practice I think unsubsidized phone are going to appeal to a very small group, especially since these phones are largely carrier-restricted for technical reasons. T-Mobile and AT&T use different frequencies (in fact, the Nexus One that Google is selling doesn't operate on all AT&T frequencies), and Verizon and Sprint use fundamentally different technologies (CDMA vs GSM). This is a huge barrier to the ideal of separating device from carrier, and I think we are stuck with the old model for some time to come.

    I think the Nexus One model is an experiment, not a clear plan for the future.
  • "Will they do they same for other companies each time a new Android handset is launched?"

    While you say it's a rhetorical question I still am going to answer it because of something I read earlier. In the Q&A after the press conference, Jason Chen of Gizmodo got the following from the Googlers on stage.

    "Q: ...And, is Google going to retail other products online?
    A: ...This is not the only device that is going to be part of the offering."

    I've taken out the relevant parts but you can see more here: http://live.gizmodo.com/page/1/

    So while I'm not ready to jump on the Google bandwagon completely, it seems that they are implying that they will actually be selling other devices directly in the future. I think that this will lead to their goal of letting consumers choose which phone they want first....and have the service provider play less of a role in influencing which phones a consumer must use.
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