The launch of Google’s Nexus One Smartphone – Changing the mobile communications industry for good?

The Times reports that whilst 2009 was the year of mobile applications, 2010 is forecasted to be the year of the handset. Despite the recession, the BBC indicates that the market for high-end phones remains prosperous.  Last week Google unveiled its own brand Smartphone, the Nexus One, at an invitation only event held at Google’s Mountain View HQ.  The launch of the Nexus One is a key step in ensuring that Google remains relevant as consumers are increasingly searching the web using mobile phones rather than typing queries into a PC.  The handset is set to go on sale in America from the 12^th of January and although a UK launch date has not yet been confirmed, it is likely to follow later this year.

About the Nexus One …

The Nexus One is a slim, touch screen phone built in partnership with Taiwanese manufacturer HTC. The phone features Google’s own Android 2.1 software which is also installed on phones manufactured by Motorola and Sony Ericsson. The phone is set to directly challenge Apple’s iPhone following previous attempts from numerous other handsets. The launch also promises to result in an explosive marketing battle between the two groups and has been hailed as the ‘iPhone killer’ by the Daily Mail. Google have announced a plan to launch pay to call adverts, selling ads at premium prices, to appear on mobile phones. They are designed to work in a similar way to pay per click adverts which make up a vast proportion of Google’s revenue, thus linking the web and the mobile market as a dominant force. The proactive decision by Google to push forward its own developments rather than taking a back seat to more established mobile phone companies forms a significant progression in the mobile market.

A direct comparison – Google’s Nexus One versus the Apple iPhone

The key differences between the iPhone and the Nexus One include that the Nexus One is thinner than the iPhone and reportedly includes a larger screen.  According to the Guardian the Nexus One has a better camera than the iPhone, which includes a 5 megapixel camera compared to the iPhone’s 3 megapixels. The Nexus one additionally includes a Blackberry style track ball along with free satellite navigation capabilities, which are only available for an additional charge on the iPhone.  The Nexus one is also exceptionally quick to load and run, and appreciably faster than other handsets running Google’s software. It can therefore be argued that the Nexus One is excelling the iPhone in a number of ways. The Nexus One however omits the handy swiping motion valued by many iPhone users and iPhone also excels in terms of offering a wider variety of applications and a more fluid user interface. The core features have been examined further in the chart below.

Pricing and Distribution information for the Nexus One Smartphone

According to the BBC the handset is likely to cost consumers $179.99 (£112) on a contract with T-Mobile, but will also be available for $529.99 (£331) without any contract tying users to a specific network. According to TVNEZ the device has been gaining favourable first reviews on various technology websites and forums. The initial reaction has revealed that the Nexus One has the hardware, software and carrier flexibility to pose a significant challenge to the Apple’s iPhone.

The Nexus One will only be initially available in America on the T-Mobile network followed by Vodafone in Europe, yet there are plans to sell more phones from the Google store, each with a choice of operators. It is also intended that the Nexus One will be available to purchase via the Google phone store, enabling consumers to select the desired handset along with the preferred carrier, in an attempt to prevent distribution wars, which has been a fundamental issue in relation to the sale of Apple’s iPhone. This is perhaps one of core selling points for the Nexus One, as owners will not be restricted by which network to sign up with. Going forwards, this could potentially really alter the mobile market for good, taking the distribution power away from selected mobile operators.

The future of the mobile phone industry

The launch of Google’s Nexus One Smart Phone is expected to change the mobile communications industry for good, from how entertainment and news are distributed, along with how goods and services are purchased. The Nexus One offers a wide range of features, more consumer choice and is intended to help Google ensure that its online products and advertisements get a prominent placement on the new class of wireless internet devices. The Nexus One is only the first Google phone of many developments planned for the future. 2010 is ultimately shaping up to be the year when internet users move decisively towards the online web. 2010 is going to see the greatest innovation battle yet with the launch of Apple’s tablet computer expected at the end of January, so watch this space!