Android and the Google Phone are musts – not “options” – for Google
There is great discussion going on right now about the new Google Phone and Android. And of course, hundreds of stories are written each day about the continuing growth of iPhone apps. Today in MobileCrunch, there’s a great article about the number of apps hitting the 20,000 mark. Also today is another great article by Rita Chang about why Google is launching its own handset in AdAge, as well as a new Mobile Internet Report released by Morgan Stanley.
I actually think much of the chatter and analysis understates the danger of the rise of mobile computing and the iPhone in particular present to Google. The iPhone and iPhone apps represent a comparable opportunity in size to AdWords (which still drives the vast majority of Google’s market cap) to Apple at the same time it threatens Google’s core franchise. This also explains Google’s acquisition of AdMob along with Apple’s rumoured interest in the acquisition.
As the World Wide Web was launched on a browser, Google (and Yahoo before it) succeeded (where many others failed) in becoming THE STARTING POINT for web navigation. And by far the MOST VALUABLE type of web navigation is search. The ability to allow advertisers to reach consumers at the point of their intentions is an incredible innovation that has made Google one of the most financially successful companies in history.
With the rise of the mobile internet – and Apple’s early dominance – [Google] is now truly threatened for the first time. Here’s why: