Is Google Getting into the Cell Phone Business?

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Nobody was really surprised when Apple finally trotted out its entry into the cell phone market; even the name – iPhone – had been anticipated. Now many analysts are saying that Google is working on a gPhone to rival Apple. What’s really going on?

Let's look at what we know about Google. They provide ad-supported services for free. Users interact with these services over the Internet. They are the first - and often the only - company that anyone thinks of when they need to search the Internet. They share with Apple an aura of ubercoolness that comes in part from the same source: their products are high-tech and geeky, yet so simple as to be intuitive.

But it's at that ubercool aura where Google's similarities to Apple end. Don't get me wrong; there are a lot of people who would love to see what Google could do with a cell phone. But let's get real here. Google is not now and never has been a hardware company. It would have to be crazy to become a hardware manufacturer; think of the amount of research and infrastructure investment that would be involved. Given that the search giant is not likely to have taken leave of its senses, we can assume that it will stick to what it does best: selling ads that people see while they're busy searching or doing other things.

There's another reason why Google would be crazy to create and sell its own cell phone. I lied when I said the similarities between Google and Apple end at their geeky coolness. Four of Apple's eight directors wear other hats - as directors or advisers to Google. In fact, Google CEO Eric Schmidt sits on Apple's board of directors. Can you say conflict of interest? That's not something a Google employee at any level would want to face, given the company's well-worn motto of "Do no evil."

So if Google isn't going to get into the hardware business, why are so many people speculating about a Google cell phone? There are a lot of ways to get into the cell phone business, as it turns out, and Google may be trying several of these approaches. If the Wall Street Journal can be believed, in fact, these moves tie in perfectly to Google's main source of income.

Next: Shopping Around a Prototype >>
 

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