| Google first stuck their toes in the water in the cell | | | | brought to that segment. |
| phone business with Android on T-Mobile. They were | | | | Then Google jumps in. They are actually very |
| moderately successful and hoped by involving more | | | | successful with Android so far. That's because these |
| handset makers and networks they would be more | | | | devices are sold the traditional way, in stores, so |
| successful. So several months ago they jumped in and | | | | customers who are shopping for smart phones can |
| made a big splash. Then they introduced their own | | | | see and touch and try and compare. There is plenty of |
| phone called the Nexus One. What has happened | | | | room for Apple and Google and other competitors in |
| since is very interesting with an important lesson for | | | | that space. |
| both the company and for us. | | | | The Nexus One is none of that. When it was |
| They upgraded Android and put the new version on | | | | introduced it sounded big, but quickly we started seeing |
| multiple handsets from various manufacturers like | | | | nervous Android partners who were now also |
| Motorola and HTC. They started working with multiple | | | | competitors. |
| networks. They even worked with Verizon to brand | | | | Who knows, it could be the best device on the market, |
| their own version and called it Droid. Things were | | | | but it won't sell because it is only sold on the web. |
| getting exciting. A little confusing, but we could handle | | | | There are plenty of early adopters there, but that's not |
| that. | | | | how people buy cell phones generally speaking. They |
| Everyone who worked with Google loved what was | | | | have to visit a store and touch the actual device and |
| happening, until Nexus One. They pulled a fast one and | | | | compare it. |
| introduced their own handset. At the time I said that | | | | That's how they buy. They want to compare it to |
| might be the straw that breaks the camels back. | | | | what they already own, to other new devices. They |
| I said this device might be the best thing since sliced | | | | want to try pressing the keys and see how easy it is |
| bread, but it may fail for a few very simple reasons. | | | | to switch programs. |
| After only a few months on the market Google just | | | | Google forgot, or maybe didn't understand that cell |
| announced they are taking it off the market. | | | | phones are not all created equal. |
| Why was I so sure this would not work? | | | | Recommendation. If Google wants to change the |
| We all remember how Google broke the rules in | | | | industry, or a slice of it, they should get into the |
| Internet search and won. At the time the Internet was | | | | wireless industry with their popular Android. Then after |
| new, and changing, and they offered the same thing | | | | they build their brand in the space the can begin to |
| that Yahoo and MSN offered, but faster and better. | | | | transform it for their own customers. |
| Customers were waiting for newer and faster | | | | Currently Android is selling faster than the iPhone. How |
| versions. | | | | long is the question. When the iPhone was new it sold |
| Since then they have expanded beyond that traditional | | | | faster too. At some point sales levels might be the |
| search engine on the Internet. They have been | | | | same. |
| successful at all of their efforts, on the net. They are | | | | Is Nexus One gone forever? I think Google pulled it off |
| number one on the net. | | | | the market now and may indeed reintroduce it down |
| Now Google wants to jump into another industry and | | | | the road when their brand is further developed in the |
| transform it. They want to own wireless going forward | | | | mobile industry. |
| the same way. The problem is they are not having the | | | | The company has a good attitude. They thought they |
| same success. | | | | would come charging in and transform the wireless |
| One reason is the cell phone business is not new. It | | | | industry. |
| has been around for over 25 years. It has changed | | | | When they didn't we learned two important things. |
| and matured in the market along with a couple | | | | - One, they won't be successful at everything they |
| hundred million customers. We are all partners in this | | | | touch, at least not at first try, and |
| adventure. | | | | - Two they pulled this off the market quickly. |
| The online world was brand new and changing quickly | | | | That is the sign of a company and group of |
| when they jumped in. Customers did not have a strong | | | | executives who may be in tuned enough to actually |
| idea of what the industry was, as it was quickly | | | | make it in these new businesses. |
| changing. That was a good marketplace for the | | | | This reminds me of MCI in the 1990's. They too had so |
| change they brought. | | | | many ideas bubbling around. They brought them all to |
| However the cell phone business is long past that | | | | market. Some were successful and others were not. |
| point. | | | | Successes stayed and failures were pulled quickly. No |
| It is already solid in the mind of the customer. Apple | | | | one was scalded. The attitude was right on. Looks like |
| was successful with the iPhone because the smart | | | | what we just witnessed with Google. |
| phone market was already in place and had grown to | | | | It will be interesting to watch their next steps. One |
| around 15%. | | | | more thing. Perhaps when they do bring this back to |
| People understood smart phones. A segment of the | | | | life, the will give it a name that sounds like a cell phone |
| marketplace could appreciate the changes Apple | | | | instead of hair conditioner. Just a thought. |