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How can the “gPhone” one-up the iPhone? Make it free

Posted February 19, 2008 3:00 PM by Cedric Bosch
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When Google announced that it planned not to release hardware devices but rather software solutions for other manufacturers’ phones, many people saw the move as a possible deceptive facade. Apple certainly had experienced success with the iPhone, and that was a hardware/software combination, so why shouldn’t Google try the same thing? The answer is simple- Apple had massive amounts of experience when it came to making hardware and more importantly, creating intuitive user interfaces. Google’s interface experience is unfortunately limited to programs such as Google Maps and Gmail. Don’t get me wrong, those are excellent programs, but creating a single application is a far cry from designing a device’s operating system.

If Google were to release a handset, it would be safe to assume the phone and service would be offered either at no cost or for a very small fee, and reimbursed by extensive advertisement placement. Google’s page views and server load are the highest in the world, yet they manage to balance those costs, plus the costs of a brilliant staff, and still return a significant profit. How? Google is an advertiser first and a search provider second. Google’s venture into the mobile phone market is a risk no matter what, so Google may as well go all-out and offer their service for free. There hasn’t been a single Google service that users had to pay for, and there’s little reason why their first venture into the hardware market should be fee-based either.

Apple capitalized on the cell phone industry by listening to its customers, and giving them what they wanted. Google may lack experience when it comes to manufacturing phones, but if they do what they do best- meet people’s needs- the iPhone will face some serious competition.

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  1. Apple has zero to worry about unless it plans on getting into search or selling internet ads.

    Google - great search, nice collection of apps - but look at their icons and the “MORE” page - it’s a UI mess. Or remember the TV & movie they launched? Uglier than even MS. Google can design a UI - can Google design a UI that tops Apple. No. maybe years from now but if the CELL PHONE companies couldn’t do after 15 YEARS in the biz. Gog is not gonna.

    As for pricing, FREE? Sounds great but then it will be laden with ads - if you can afford a phone for $400 to $500 - why would you step back? And it’s not like having a cell phone is some super expensive proposition ... you can get a phone for $19 or $49 ... what are you giving up for free?

    And free? That’s the WORST kind of user for advertisers ... advertisers know the ‘free’ users are people too cheap or not much income ... the perfect audience is Apple’s audience but Apple is not going to allow you to add ads to the iPhone so be caeful of touting free ... if I offered you free home service but anyone you called or called you had to listen to an ad, would you take that deal?

    Posted by jbelkin on February 19, 2008 9:05 PM

  2. You have some great points, jbelkin. However, I’m going to have to disagree with you on your last point. Take Google’s current product(s). Why do people use them? Because they’re the best, and they’re free. Are they so good that people would pay for them? Probably not. Imagine if you had to pay 10 cents for every Google search or every Gmail message you sent. I’d be willing to be you’d be off to Ask.com in no time at all. However, by creating an excellent service, making it free, and using ads EFFECTIVELY (key word here- easy to say but hard to do) Google struck the perfect balance and created a service that everyone uses, and that Google can profit from.

    Posted by Cedric Bosch on February 19, 2008 10:45 PM

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