However, as a Business Analyst, I am a bit skeptical about this venture that Google is getting into.
First, What is the intention of Google when it says that it wants to sell Google Nexus One Cell Phone directly to the consumers? I cant understand that when there are so many cell phones or better to say smart phones available in each part of the world, what is Google trying to do by coming up with its own brand of phones?
True that Google is a big name, but imagine the stiff competition it will face from the existing smart phones.
Second, Google is going solo. No strings attached, no carrier bounds like one must go with AT&T or Verizon. However, that might mean that Google will not be able to provide the required discount to the buyers, which is possible when the manufacturer and the cell phone connection carrier join hands.
Third, remember iPhone. It was an instant hit. However, after some months, many other smart phones were found to be better than the iPhone. The remade low cost Chinese models were the choice for their low costs, no strings attached about connections and easy availability. What if Google Nexus One Cell Phone also meets the same fate?
Fourth, is mobile phones the core of Google Business? I dont think so. Google is a search company. Although it has launched many new things - bloggger, picasa, chrome, etc., but it still remains a software company. What is forcing it to shift to hardware? As WSJ claims, Google did not build computers or the internet, but it dominates the computers as well as the internet. It would have made more sense for Google to build web applications for mobiles, rather than a mobile phone itself. The business deviation might look a good venture into a new hardware stream, but the risks of failure are no less.
Hope to see some concrete returns for the shareholders of Google after the launch of the much awaited Google Nexus One Cell Phone.
No comments:
Post a Comment