I had a long discussion yesterday about Google’s phone that kicked the ball up and down the street. It concluded in an agreement that the Google phone is a mistake. Here’s the rationale:
- The Nexus One is really not that good, compared to the Droid, for example, never mind comparing it with the iPhone. That’s bad news for brand reasons.
- Google is not a device company, yet and it shouldn’t become one. It’s a tough road. Look at the problems Microsoft has been having with Zune, for example.
- Does Google even have it to become a device company quickly or even slowly. Does it really have the ability, not just to build a phone, but to keep a phone competitive.
- If it becomes a successful device company (which is, I admit, a possible route for it) then it will lose all those companies that are enthusiastically queuing up to build Android devices (cell phones or net books or tablets). They’ll go elsewhere – to Linux probably. The Google app store will be damaged.
- Why put yourself in direct competition with Apple on Apple’s territory?
- Google’s real revenue stream in the mobile market is adverts. That means it needs to inveigle its way onto as many devices as possible (via its app store). A phone of its own doesn’t help.
Google should bury the phone and do what it does best. It should forget about Chrome OS devices too.
Having said that: Kudos to Google for standing up to the Chinese.
