Google Launches Mobile Handset
In the recent past, Google tried to get a foothold in the rapidly growing mobile broadband segment, and it is quite logical that as a part of that strategy, Google would launch a mobile handset.
The industry is abuzz with the pros and cons of Google’s launch of the Nexus One, a mobile handset from the search giant that has recently hit the market. Market analysts are finding it difficult to believe that the Nexus One will be a suitable competitor for Apple’s iPhone. The conclusion is that the new handset is an attempt to consolidate the mobile advertising segment of the search giant.
Google is trying to gain access to this burgeoning market by acquiring promising start-ups engaged in mobile advertising. The launch of this handset is an attempt to defend the mobile advertising market.
This move is in line with the strategy of consolidation pursued by Google. The core area of operation for Google is net-related advertising with an annual turnover of £12.4 billion. With the worldwide growth in mobile internet access, Google has tried to capture a segment of the mobile ad market by launching this handset which is available via Google’s web store for $529 (£332) not locked to any network, or $179 (£112) with a T-Mobile contract valid for 2 years.
Regarding the pricing structure adopted by Google for this mobile handset, it is a matter of speculation as to why Google did not subsidise the handset with ad revenue. The reason of this speculation is that Google has adopted this type of price structure in the past and is familiar with this. Danny Sullivan, editor of SearchEngineLand.com, commented to the BBC News that Google could have launched a premium phone at a competitive price by relying on the ad revenue.
According to Sullivan, this will be suitable for a company anticipating a mobile phone market solely dependent on ad revenue.
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