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October 8, 2009

Google and Verizon Wireless: A Potent Smartphone Team

Move over Apple and Research In Motion. Rivalry in the smartphone market has just heated up.

For a while it seemed the bloodiest battle in smartphones would be fought between Apple, maker of the iPhone, and BlackBerry maker Research In Motion. But an emerging alliance between Google and Verizon Wireless has the potential to create a potent alternative to the BlackBerry and iPhone in the U.S. smartphone market.

On Oct. 6, Verizon Wireless and Google said they will collaborate on mobile devices, services, and software for the Android mobile operating system that’s being developed by a Google-led consortium. The pairing gives Android its largest-yet wireless industry backer and is likely to accelerate the development of Android-based devices and of applications tailored to the Android operating system.


Thirty Android-Based Devices by Yearend?

Analysts expect Verizon Wireless, a joint venture of Verizon Communications and Vodafone and the largest U.S. wireless service provider, to unveil at least three Android-based phones from such makers as Motorola, Samsung, and HTC later this month.

Backing from Verizon Wireless, which boasts 87.7 million users, could encourage other handset makers to build for Android, too. All told, device manufacturers may unveil 30 Android-based devices by yearend, says Stifel Nicolaus analyst George Askew. Last summer, Google’s top Android manager, Andy Rubin, said he expected up to 20 devices to debut in 2009.

Depending on how aggressively Verizon Wireless begins marketing Android handsets, BlackBerrys and other smartphones could be forced to play second fiddle in Verizon Wireless stores, says Kaufman Bros. analyst Shaw Wu.

An increasingly important selling point for smartphones is the availability of applications, such as games and productivity tools, often developed by third-party programmers. Android Market, which sells games and productivity apps for phones such as the T-Mobile G1 and myTouch 3G, currently offers about 10,000 apps. The Apple App Store has more than…

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