The clash of the titans has begun with Google entering the mobile phone market and attacking the iPhone head on! Google's new invention, the 'HTC dream' is now available in Australia through Optus distributors and claims to be better than the iPhone. The marketing strategy behind it is complex and extremely interesting, so lets look at a few of the major points.
Product composition:The Google phone is a stronger build, a little larger, but requires less TLC. The application software is also top quality, the batter life is quite good and it comes with a QWERTY keyboard for full PDA functionality. As expected, it also ties in with the hundreds of excellent Google online programs and functions.
Most importantly in its battle with the iPhone, it offers the same ability to download applications, however unlike the iPhone, most of these apps are free and the phone has an even greater capacity to run powerful apps. For example, you can set your phone to be tracked by GPS constantly, so if someone steals it, you can use a friends phone to track it down! No more losing it under the couch for me!
Distribution:Google have signed an exclusive distribution agreement with Optus, much in the same way that Apple did with the major retailers, this gives it the image of exclusivity and stops larger tech retailers (Dick Smith) discounting the price and cannibalizing contract sales.
I do however question the limited distribution as the KPI for any emerging tech is the availability and with the staunch loyalty of many Telstra customers for example, they are only limiting their ability to target early adopters and hence build a solid reputation. Maybe a non-exclusive distribution agreement with all major phone retailers would have been better.
Positioning - Consumer Targetting
The phone straddles the line between consumer and business orientation. You could mount a good case that the HTC Dream doesn't know exactly who it aims to service, but overall it does everything fairly well.
There is no doubt that Google will be selling to the early adopters, however in many ways, the iPhone has already done most of the legwork for them. Customers now demand full internet functionality, music and quality camera's, they also demand the ability to downloads programs and customize their phone to suit their life. With this in mind, the Google phone may see a steeper adoption curve than its predecessor.
Josh Strawczynski's Opinion:I am an early adopter and was one of the first to purchase the phone when it came out. Through my work in online advertising, I have had the privilege of working closely with Google and must admit that everything they do is intuitive and well thought out. I see the HTC dream much the same, although it is only v1.0, it did not take long to have me hook line and sinker!
Sam Berringer's Opinion:I love my iPhone and I love my Mac, but I am very glad to see competition in the marketplace. Google and Apple will likely push one another to new heights, I look forward to watching the competition play out over the coming years, much like the computer wars of the late 90's early 2000's.
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