tag:blogger.com,1999:blog-20629800.post-31341608209998921022007-09-11T11:32:00.000-05:002007-09-11T17:12:22.471-05:00<a href="http://blog.scifi.com/tech/pics/gphone1.jpg"><img style="margin: 0px auto 10px; display: block; width: 400px; text-align: center;" alt="" src="http://blog.scifi.com/tech/pics/gphone1.jpg" border="0" /></a><br /><div>Rumors of <span class="blsp-spelling-error" id="SPELLING_ERROR_0">Google's</span> mobile device have been circulating for over a year now. No matter how good the device will be at release, it is undeniable that Google will face a huge challenge in entering the mobile device market. Many people think that Google will inevitably fail if they tried to enter this game. Just listen to Don <span class="blsp-spelling-error" id="SPELLING_ERROR_1">Reisinger</span> at <span class="blsp-spelling-error" id="SPELLING_ERROR_2">CNET</span>, in his post entitled <a href="http://news.com.com/8301-10784_3-9769003-7.html">Future Implications: Why the <span class="blsp-spelling-error" id="SPELLING_ERROR_3">Gphone</span> will fail</a>.<br /><br />"Google will be met with a significant amount of competition that it wields no advantage over. Cell phones are a different ballgame and if you ask me, Google is ill-equipped to play this game."<br /></div><div><br />But there is one simple way that Google could completely bypass this barrier.<br /></div><div><br />Make the <span class="blsp-spelling-error" id="SPELLING_ERROR_4">GPhone</span> free.<br /></div><div><br />That's right. Imagine being able to get your very own <span class="blsp-spelling-error" id="SPELLING_ERROR_5">GPhone</span> for free! Would you get one? I would. I would even be willing to pay the shipping cost. <span class="blsp-spelling-error" id="SPELLING_ERROR_6">Google's</span> <a href="http://www.googlestore.com/">official store</a> could sell these puppies for $0.00 and charge a nominal shipping charge.<br /></div><div><br />Apple has already sold over 1 million <span class="blsp-spelling-error" id="SPELLING_ERROR_7">iPhones</span>. I bet Google could give away 1 million <span class="blsp-spelling-error" id="SPELLING_ERROR_8">iPhones</span> in the first few <em>days</em>.<br /></div><div><br />But how could Google possibly afford to give away so many phones? The answer is simple, and I know you all can see it coming.<br /></div><div><br />Advertising.<br /><br />Everybody uses Google to search the Internet, and Google makes 99% of its revenue from the ads that users click after performing a search. By giving away the phones for free, Google would be taking an initial loss, but the number of Google searches will increase <strong>drastically</strong>.</div><div> </div><div>Google is working extremely hard right now to keep the cost of these phones as low as possible. They're doing this by using their own Linux-based operating system instead of the expensive Windows Mobile OS. Also, Google is rumored to be in communication with multiple hardware vendors including <span class="blsp-spelling-error" id="SPELLING_ERROR_9">HTC</span> and Orange. By working with several hardware vendors, Google is forcing companies to compete for the partnership, which will lower the cost to produce the phones even further.<br /><br /></div><div> </div><div>Think about it this way. <strong>If you owned all of the gas stations in the United States</strong>, and you were able to develop cheap and stable cars, would you give them away to anyone willing to come and pick them up?<br /><br /></div><div> </div><div>With this approach, I think Google won't have any problem entering the mobile space.</div>CJhttp://www.blogger.com/profile/02334936756648727605noreply@blogger.com