Tuesday, October 9, 2007

Google's Phone Project Aims at Microsoft

Is Google about to produce the next iPhone? Find out here!

Google, the internet media giant, has had a large group of engineers working on a secret project for nearly two years now. Rumors had leaked that Google was planning to manufacture a next generation of cell phones, which some observers creatively dubbed the "GPhone." Now as a new report indicates Google's true intentions, it appears that the company has not only done a good job keeping the wraps on its secret project, but that the project is much more complex than expected.

Google has been working on developing a software platform for cell phones, which it hopes will create a new business sector. It begins with the phone operating system (OS). The OS that Google has been working on is a modified version of Linux, the open source OS. Atop the OS, Google is modifying its Office suite, organization tools, maps, messenger, and email, along with the rest of its programs to run in cell phone environments. The final piece of the puzzle is what Google hopes will make the phone truly profitable -- advertising.

Currently cell phone advertising is a fairly small and specialized business. Google hopes to expand and transform this niche into a thriving new market sector.

Rather than competing with the iPhone, these developments reveal that Google intends to challenge Microsoft for mobile phone OS dominance. Google has one clear advantage when it comes to its OS: the software comes at no cost, while Microsoft charges cell phone companies for use of its Windows Mobile OS.

The developments from Google are intriguing. While it becomes clear that its focus is on providing a software platform, the possibility of a Google-backed iPhone smartphone competitor remains. Perhaps the party that should be most worried, however, is Microsoft, as Google looks to provide an OS with similar capabilities to Microsoft's free of charge. Furthermore, Google's new advertising based business dynamic is set to provide the latest chapter in an ongoing move to provide media content for free, funded by advertising.

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