Google Phone Available As Early As January 5
The company best known for the way it has managed to dominate the Internet search industry has become increasingly involved in the ever expanding cell phone market. Google Inc is planning to sell its own branded cell phone through T-Mobile USA, reported Reuters.
Manufactured by HTC, the phone has been called a number of things, including HTC Passion, Dream or Nexus One, and could be made available directly to consumers through the Google website as early as January 5, according to a source familiar with the matter.
A blog post from a Google executive on Saturday said it was testing an Android-based device with its employees to "experiment with new mobile features and capabilities."
Media reports have said that Google will also be offering an unlocked version of the touch screen phone, allowing consumers to choose their own wireless service provider.
Deutsche Telekom’s T-Mobile USA will have another version of the device, and will subsidize the cost of the phone for U.S. consumers who agree to a service contract, the source said.
"In the long term Google will become a seller and get commission from operators," the source said, adding that other operators are expected to follow T-Mobile’s lead eventually and agree to Google’s terms.
The phone is comparable to Apple Inc’s iPhone but sports many different features, such as an exchangeable battery, a larger screen and allows consumers to add a memory card to the device. Any operator who wants to sell the phone to its customers will have to go through Google, the source said.
"Apple had a phone so hot it changed the business model and got operators to agree to revenue sharing. This is going to change the business too," the person added.
When asked about the matter, a T-Mobile representative said the company does not comment on rumors or speculation.
Baird Research analyst Will Power said, "We expect the launch of a new competitive device to be directionally negative for most of the existing smart phone markers, including Apple, Research in Motion, Nokia Oyg, HTC, Motorola Inc, Palm Inc, Samsung and others, while perhaps most negative for the existing Android partners."
Before, Google has partnered with a number of handheld device makers by offering its open-source Android software as a freely available operating system for smart phones.
Google said that, as of last month, more than a dozen phones were being offered with Android, including the heavily advertised Motorola Droid phone that is available with Verizon Wireless, a unit of Verizon Communications and Vodafone.
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