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Google Phone Could Jeopardize Web Search Business

For the past few days we have heard nothing but the Google Phone, which is called the Nexus One. The search engine giant is playing a risky game if they do go head-to-head with other cell phone companies, as this could jeopardize its web search business, which is considered Google’s bread and butter.

According to an article on Reuters, if Google pushes ahead with its plans to launch its own branded smartphone, then it could end up costing them billions. Analyst, Anil Doradla suggest that Google should give up on the idea and concentrate on its Android OS, which has already been released on more than 10 handsets this year and more than 50 planned for 2010.

However, if the Nexus One Google Phone goes ahead, then the number of Android phone releases in 2010 could reduce dramatically. Analysts are struggling to understand what Google is doing, why would they want to take such a risk. The search engine giant has worked hard on a better image, this device could cancel all that out in one go.

Many believe that Apple is trying to do what Apple is doing by dominating the smartphone market. However, there are a number of flaws in this, the first is that Apple do not need to try and keep other cell phone makers happy. Another reason is Google would make more money by concentrating on its Android OS with its partners.

Google could still make a success of things though, they have seen that Apple have excelled with its iPhone and Google feel that they can achieve much more with the Nexus One as they have the expertise in software.

There are a number of pros and cons for a Google Phone; do you think they are making the right decision?



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