By Miguel Helft
Google’s unveiling on Tuesday of a rival to the iPhone is part of its plan to try to do what few other technology companies have done — retain its leadership as computing shifts from one generation to the next.
The rapid emergence of the smartphone as a versatile computing device may be as much a challenge as it is an opportunity for Google, which built its multibillion-dollar empire largely on the sale of small text ads linked to search queries typed on PCs.
As people increasingly rely on powerful mobile phones instead of PCs to access the Web, their surfing habits are bound to change. What’s more, online advertising could lose its role as the Web’s primary economic engine, putting Google’s leadership role into question. “The new paradigm is mobile computing and mobility,” said David B. Yoffie, a professor at the Harvard Business School. “That has the potential to change the economics of Internet business and to redistribute profits yet again.”In recent decades, the power of industry giants like IBM and Microsoft, waned as computing shifted from big mainframes to PCs, and from PCs to the Internet.
Many analysts say it is now Google that is faced with a less certain future in the face of another shift. Still, they say Google saw this coming years ago and has been preparing for it. Google executives now say they are confident that the company will thrive as the mobile Internet grows.
“We are incredibly excited about the opportunities that we see in mobile,” Vic Gundotra, a vice president of engineering at Google who oversees mobile applications, said last week. “We have invested a considerable amount, and we can now really provide a compelling mobile experience.”Top Google executives, including Eric E. Schmidt, the chief executive, have long said the mobile Internet was Google’s biggest opportunity for new growth.
They orchestrated a string of acquisitions of companies with mobile-related technology, including Android, maker of a cell phone operating system; Grand Central, a service for making calls that can bypass telephone lines; and AdMob, an advertising network for mobile applications. The AdMob deal is awaiting approval from regulators. Google also invested far more aggressively than its competitors in mapping technologies and services tied to a user’s location, which are likely to become the vital underpinnings of new advertising systems on GPS-equipped mobile phones.
The unveiling of the Nexus One, a thin, touch-screen handset built to Google’s specifications and made by the Taiwanese company HTC, is a challenge to a newly minted industry power: Apple, whose iPhone dominates the high end of the smartphone market.
While the iPhone sends millions of people to Google’s search and other services, some of the company’s applications, like Google Voice, have not been allowed to run on the phone.Analysts say that with the Nexus One, which Google plans to sell to consumers directly, the company is trying to free itself from Apple’s growing influence. It also wants to broaden the appeal of Android’s technology.
The phone is expected to be sold unlocked, allowing consumers to buy service plans separately.Gundotra declined to discuss specifics of the Nexus One. But he said all of Google’s mobile moves were driven by one objective: Pushing the industry to open up in an attempt to replicate on mobile phones the environment that has allowed the PC-driven Web to grow at explosive rates.
Some of Google’s moves, like its bid for spectrum, confounded many in the industry. But analysts say Google’s actions proved shrewd and that the company has, to a large extent, helped open up the mobile Web and ensured that its services, and ads, will be accessible to all.“You could take a view that this is a very geeky company,” said Nicholas Carr, author of The Big Switch, a book about the shift to Internet computing. “That underestimates the strategy that underlies all these moves.”
Google’s unveiling on Tuesday of a rival to the iPhone is part of its plan to try to do what few other technology companies have done — retain its leadership as computing shifts from one generation to the next.
The rapid emergence of the smartphone as a versatile computing device may be as much a challenge as it is an opportunity for Google, which built its multibillion-dollar empire largely on the sale of small text ads linked to search queries typed on PCs.
As people increasingly rely on powerful mobile phones instead of PCs to access the Web, their surfing habits are bound to change. What’s more, online advertising could lose its role as the Web’s primary economic engine, putting Google’s leadership role into question. “The new paradigm is mobile computing and mobility,” said David B. Yoffie, a professor at the Harvard Business School. “That has the potential to change the economics of Internet business and to redistribute profits yet again.”In recent decades, the power of industry giants like IBM and Microsoft, waned as computing shifted from big mainframes to PCs, and from PCs to the Internet.
Many analysts say it is now Google that is faced with a less certain future in the face of another shift. Still, they say Google saw this coming years ago and has been preparing for it. Google executives now say they are confident that the company will thrive as the mobile Internet grows.
“We are incredibly excited about the opportunities that we see in mobile,” Vic Gundotra, a vice president of engineering at Google who oversees mobile applications, said last week. “We have invested a considerable amount, and we can now really provide a compelling mobile experience.”Top Google executives, including Eric E. Schmidt, the chief executive, have long said the mobile Internet was Google’s biggest opportunity for new growth.
They orchestrated a string of acquisitions of companies with mobile-related technology, including Android, maker of a cell phone operating system; Grand Central, a service for making calls that can bypass telephone lines; and AdMob, an advertising network for mobile applications. The AdMob deal is awaiting approval from regulators. Google also invested far more aggressively than its competitors in mapping technologies and services tied to a user’s location, which are likely to become the vital underpinnings of new advertising systems on GPS-equipped mobile phones.
The unveiling of the Nexus One, a thin, touch-screen handset built to Google’s specifications and made by the Taiwanese company HTC, is a challenge to a newly minted industry power: Apple, whose iPhone dominates the high end of the smartphone market.
While the iPhone sends millions of people to Google’s search and other services, some of the company’s applications, like Google Voice, have not been allowed to run on the phone.Analysts say that with the Nexus One, which Google plans to sell to consumers directly, the company is trying to free itself from Apple’s growing influence. It also wants to broaden the appeal of Android’s technology.
The phone is expected to be sold unlocked, allowing consumers to buy service plans separately.Gundotra declined to discuss specifics of the Nexus One. But he said all of Google’s mobile moves were driven by one objective: Pushing the industry to open up in an attempt to replicate on mobile phones the environment that has allowed the PC-driven Web to grow at explosive rates.
Some of Google’s moves, like its bid for spectrum, confounded many in the industry. But analysts say Google’s actions proved shrewd and that the company has, to a large extent, helped open up the mobile Web and ensured that its services, and ads, will be accessible to all.“You could take a view that this is a very geeky company,” said Nicholas Carr, author of The Big Switch, a book about the shift to Internet computing. “That underestimates the strategy that underlies all these moves.”
New York Times
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