Analysts Predict GPhone Will Outsell iPhone

Dennis Faas's picture

Behold the latest champion of the mobile phone industry!

The new GPhone, the anticipated and top-secret mobile phone from Google, is already expected to beat the widely popular Apple iPhone by providing more features and lower cost.

The GPhone project was officially launched after Google's recent acquisition of the small Finnish start-up company, Jaiku. The acquisition was a tremendous coup for Google because Jaiku holds many key SMS patents. SMS (Short Message Service) is text messaging, the technology that allows short messages to be exchanged amongst billions of ordinary cell phones. (Source: usatoday.com)

Google has been successful in keeping a tight lid on their plans for the GPhone, but the company has remained open to advertisers looking to sponsor their search results on mobile devices just as they do on standard personal computers. Google currently commands roughly 29% of the search market in the U.S., while Yahoo comes in a close second with a 16% share of the market. While Google will most definitely continue to maintain their elite position in the U.S. search market, they also hope to experience similar success in the mobile phone industry.

Investors are obviously enamored with the GPhone project. Google stocks continue to sell at $600/share and industry analysts are expecting an annual profit of more than 50% compared to the previous year. (Source: usatoday.com)

The acquisition of Jaiku is only one element of the Google mobile market takeover plan. In addition to Jaiku, Google has recently acquired Zingku, a major player in the mobile social networking market. With the technological innovations of these two start-up companies, Google will have little trouble jumping into the mobile market game.

Google is also hoping to get device makers started on producing basic handsets equipped with a "Gbutton" that takes users right to a Google texting screen when activated. The ultimate goal for Google is to get GPhone users in the habit of querying its vast databases for anything from directions and phone numbers to movie times and restaurant tips. (Source: news.yahoo.com)

Aimed at younger users, a standard GPhone model would begin selling at a fraction of the price of an Apple iPhone, although exact figures remain unknown.

Analysts believe that basic GPhone designs are ready to be manufactured. Once Google signs an agreement with a major carrier, GPhones could flood the mobile phone market in a matter of weeks.

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