"Unleash the Googlephone"

Well, not content with developing and then giving away a kick-ass mobile phone operating system in Android, Google seems set to ramp up its all-out assault on the mobile phone business model with its upcoming 'Nexus One' handset, the first true Google phone (sorry T1 owners!). This is an interesting development for the internet giant as it marks a first foray in to hardware, rather than their more traditional software-only focus and no doubt has set mobile operators nerves jangling in the process. Cyborg Ninja fave HTC will make the device for Google but it will only be Google branded.

 

At its very core, Google is driven by a desire to see people use it's services to generate revenue from advertising - eyeballs equals cash, pure and simple, and the pervasiveness and availability of their services to the modern consumer is part of their business models' critical path. Hence recent developments of offerings such as Google Mail and Google Docs - a free office software suite hosted online that just so happens to have small ads alongside the app. Give them what they want and people won't mind an ad - and so far Google have taken this approach to the bank in a big, BIG way.

 

As a result ,the Nexus One is another weapon in the Google advertising-driven arsenal although it is rumoured to possibly be a data and VoIP only (i.e. not GSM networked) device. However, this still is a very shrewd move that cuts across a number of fields. It takes advantage of the growing availability of wireless internet services (at home, coffee shops, airports etc.) and the increasing dominance of mobile devices in computing. It will put 'the internet' in more peoples' hands relatively cheaply - a very good thing as far as Google is concerned. However, the recent sell-off of Skype highlighted the difficulties in making money from VoIP but Google is not looking to make money from the voice side, only the click-based economy of internet traffic. So, VoIP could go the way of the aforementioned productivity applications - being given away in an effort to drive click-throughs from ads - very, very clever...and a nice partner to the so-far US-only Google Voice service.

 

Another key factor with the Nexus is it gets the Google brand out there even more and the media hype will only grow as it takes aim at Apple's iPhone market share. Google takes a dual approach to its growth by aiming to not only grow its own business but also undermine its competitors at the same time. Giving away Google Docs office suite drives more people to Google's services whilst simultaneously undercutting Microsoft's paid-for Office range, Android drives mobile users and manufacturers to the Google sphere of influence and away from Apples and Windows Mobile's clutches. Very shrewd business moves with but one question that needs to be asked is...once you give everything away to grow your business, what happens if you have nothing left to give and advertising revenues start to fall? This has yet to happen to Google but it would be interesting to see how they would respond to such a situation.

 

Either way, the crush of Google's benevolent might continues unabated and leaves us wanting more....stay connected!