Monday, January 25, 2010

Is Google going into right direction with Nexus ?


Is Google in the right strategic business path going into the foray of making cell phones?
Google finally completed their product test dubbed the “Nexus” and just recently launch it in the US –the highly anticipated android phone against Apple "Iphone" which Apple has been flourishing in the market for the past 2 years with millions sold. But does Google's move into territory dominated by specialists like Nokia and Motorola and consumer electronics stalwarts like Apple and Samsung make any business sense?  If you ask MBA graduates, nothing is too late as long you have the right strategy and applying all the business theories, marketing tactics, R&D, etc, you will still get a substantial market share which is still a “big pie” in the phone business to be captured by many players. Technology advancement is key to success as long you come with an “extra edge” in the mobile user platform.

Google is an Internet advertising company, after all, trafficking in search terms and text ads, the company has partnered with myriad handset makers and carriers to bring its Android operating system for mobile devices to consumers. Why would it ever want to bypass its partners, putting out its own phone

Here's an interesting peek into the free Web-based mobile phone downloads.
It comes from Myxer, a Florida-based website that claims one of the Internet's largest catalogs of free ringtones, wallpapers, videos, applications and games.

In its inaugural report on the behavior of its 30 million users, Myxer's compares the traffic it's getting from users of Apple's iPhone and Google's Android devices. From 1 billion downloads over the last three months of 2009, Myxer discovered several trends that may be less significant than they appear:

• Visits from users on the Android operating system grew almost 350% from December 2008 to December 2009, compared to iPhone visits which grew 170%

• Roughly 70% of the ringtone downloads made by Android users, and 48% of downloads initiated by iPhone users, came from the Hip-Hop/R&B genre.

• In total, Myxer delivered seven times more downloads to Android devices than iPhone devices in Q4 2009.

No explanation for why Android's traffic is so much higher than the iPhone's but the reasons could probably lie in the fact that creating original wallpaper and ringtones is relatively easy on the iPhone. Besides, the Apple's App Store offers many more games and other diversions than Google's.

Whatever happens, the mobile phone users will expect to see more applications available in both Android and Apple store and it could be an era of “Application-addiction” growing to take over other kind of human interest and whether is going to be bad or good to each individual, time will tell.

No comments: