Google’s Nexus One and Beating the iPhone

Well, Tomorrow (Jan 5th) Google is rumored to announce a Consumer Google Phone, at least that’s the rumor.  Lots of speculation as to what that means, but forget about all the speculation that the rumor mill has been spouting and lets consider something else.  How can Google turn the Mobile world upside-down?

Well, the biggest hurdle that all SmartPhones have to really overcome is Price.  These are not devices that are going to get into the hands of cost conscious consumers in this economy.  While i’m not a bean counter for Google, and don’t know the big strategy there, but I’ll throw a real stab at what I believe could win the day.

  • PRICE, PRICE, PRICE. $50 unlimited Service Plan on a Google phone, this would be the really killer phone.  Make the phone cost $99 or $199.  People will pay it and see value for that.  The key here is that Google needs people to not only be on their OS (android) but on their Hardware/Software.

  • The Google Philosophy. The idea is that if you buy into something like this, then you also agree that Google can use lots of data (in an aggregated sense) to create marketing strategies for better future product placement.  This in itself is a revenue source and a vital way to understand the Google User Base.

  • It’s a Platform. Second more units sold means more people are going to develop Applications for that App Store.  Apple is seeing a great revenue stream there, and Google could do the same thing if it wants to without stifling innovation.

I own an iPhone, and I love it.  But I’m also a fan of Google’s products and innovations.  Competition is good for everyone, especially dedicated iPhone owners. Without something dynamic and different, it could just become another homogenized Android phone and a blip on the Radar.