Google's Nexus One: Winners and Losers

Now that the world knows Google's big announcement -- a new "Nexus One" phone and an online store to sell it directly to consumers -- see "Google's Nexus One Revolution"-- it's possible to determine who will benefit and who won't from the web giant's latest move. Here's a list of Nexus One winners and losers.

Winners

Google
The web giant can't seem to lose. Though selling its own phone appeared destined to alienate its manufacturing and carrier partners, the company's Android-centric consortium, the Open Handset Alliance, continues to grow. Thirteen new companies recently joined the OHA, including China Telecom, NEC and Freescale.
According to Google, there are now more than 20 Android devices on 59 carriers in 48 countries, with more to be announced at the upcoming Consumer Electronics Show. Plus, Google has the satisfaction of having built a phone to its exact specifications. As Google's Android chief, Andy Rubin, said at the company's Tuesday press conference, "This the best possible Google experience."
Motorola
Call the handset maker a surprise winner. While sales of the Nexus One are likely to cannibalize those of the Droid, the Android phone Motorola released with Verizon in November, Google has moved quickly to keep Moto a close ally.
Google not only invited Motorola's mobile devices CEO, Sanjay Jha, to speak at its press conference, it also agreed to promote the Droid in its online store for the next few months until Verizon begins carrying the Nexus One. Motorola appears to approve of Google's new plan. Judging from comments made at the event, Motorola will be the next manufacturer to make an Android phone especially for Google.
Cooliris
The four-year-old start-up is far from a household name, but its work on the Nexus One should bring it a lot more recognition. Google tapped the Palo Alto, Calif.-based firm to make 3-D browsing technology for organizing and viewing photos on the phone. The result is as dazzling as it gets on a mobile screen.
Qualcomm
There are nearly a dozen chip makers in the OHA, but Qualcomm seems to have a lock on the Android phone market. The Nexus One is no different. It too runs on a Qualcomm chip; this time, the fast, one-gigahertz Snapdragon.

Losers

Amazon Mobile, Best Buy Mobile
If the idea of buying a cellphone online attached to any carrier sounds familiar, it's because Amazon and Best Buy have been doing it for months. Google isn't going to steal their business right away; both sell dozens of phones on all the major U.S. carriers. But Google's move into online phone retail will likely affect their Android phone business and could become a greater threat in the future.
Navigation service providers: The November debut of Google's free navigation service, Maps Navigation, was a clear threat to any company selling navigation information or programs. At the time, Maps Navigation was only on one Android device, the Droid. Now, it's on the Nexus One and looks cooler than ever, particularly if it gets mashed up with the Android-compatible Google Earth application that's also in the works.
Bluetooth Headset Manufacturers
There are two main reasons a market exists for Bluetooth headsets: so people can easily talk on their phones without holding them in their hands, and to reduce noise during phone calls. The Nexus One, with its innovative hardware and software, may obviate both those needs. The phone allows users to speak virtually all commands, including text for e-mails. It also sports two built-in microphones designed to cancel out background noise.
Koi Pond Apps
This application, which essentially turns the iPhone's screen into a facsimile of a pond filled with koi fish, sold enough copies that it was named the iPhone's top paid app of 2008 and spawned dozens of copycats. Now HTC has figured out a way to build a similar feature on the Nexus One. Called "live wallpaper," the themes are attractive and functional, enabling users to access their widgets while also enjoying pretty pictures. If more handset makers do the same, will anyone buy koi pond apps?
LG
The Korean company was the only major OHA handset maker not to merit a mention during Google's press conference, despite the fact that it released an Android phone in September and is rumored to be launching a new Android handset with Sprint Nextel in the coming weeks. LG's strong alliance with Microsoft--to make Windows Mobile phones--probably doesn't help.

Posted by Coolbreeze on Sunday, January 10, 2010

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