Google’s Android Becomes Dangerous for Competition

Mobile phones powered by Google’s Android software are slowly becoming bestsellers for phone manufacturers like Motorola, as well as for mobile service providers such as Verizon or T-Mobile USA

At the same time, developers have been busy refining the platform, as well as creating new software content such as games, tools, and other applications. However, Google recently announced a move that could disrupt the equilibrium among manufacturers, developers, and service providers. In a company blog, it was reported in mid-December that the company provided its employees with ‘a device that combines innovative hardware from partners with software that runs on Android for the purpose of testing new mobile capabilities and options.’ The device features a touchscreen that allows users to browse the internet using voice commands, and Google has begun negotiations to sell the phone through T-Mobile USA.

The prospect of a Google phone itself does not excite the aforementioned partners; on the contrary, such a move would raise awareness and interest in Android, from which everyone would benefit. However, the problem arises in something else. If Google were to start withholding the best applications and features for its device, it would surely upset a large portion of their 47 partners who produce hardware, software, and chips, some of whom are part of the Open Handset Alliance that stands behind the Android project. Analysts already believe that this move could destroy the OHA.

Nevertheless, for now, most of Google’s partners hope that this move will only strengthen Android’s position in the market, which has sparked market interest, but according to project head Andy Rubin, ‘there is plenty of room for improvement.’ The market share of Android phones currently stands at about 3.5 percent, which means that the platform has not even come close to capturing users’ imagination in the way that Apple’s iPhone has. Some Android phones use outdated versions of software and do not offer the latest features, while others have less processing power than the iPhone and launch applications more slowly.

Google may simply want to create an Android device that matches the iPhone in terms of performance and encourage other manufacturers to improve their offerings. The Snapdragon chip from Qualcomm, which the new device reportedly uses, offers more processing power than the chip currently powering the latest version of the iPhone, the 3GS.

Regardless of the possibility of a collision, Navidia has stated that they remain with Google and Android, in which they intend to continue investing. Despite the trust of their partners, Google will, even if it just wants to push its platform, have to tread carefully so as not to disrupt sales for its partners. Some consumers, for example, may wait to purchase a phone until the debut of Google’s device, while some partners may change their allegiance and join rivals like Microsoft (Windows Mobile) or Symbian, the leading mobile software. Thus, with this move, Google could intensify competition in the market, but if they are not careful, they could also harm their partners, thereby jeopardizing their own position. (Vanja Figenwald)