Yesterday, Google and T-Mobile unveiled perhaps their answer to the iPhone at a price point of $179. (read article) Many are calling it the "Google Phone". However the main component is not the phone or hardware itself, but rather Google's open source software that the phone runs on, called "Android". And the first phone to run Android will be a Taiwan manufactured unit - the "G1" (see photo)...

There are two main draws for the software/phone that makes it stand out from the myriad choices for cellphones in the current market, not just the iPhone. Firstly, it can connect to and run Google based applications natively (not from a browser like iPhone's mobile safari) such as Google Docs, Google Calendar, GTalk, Google Finance, Blogger, and anything else you can find here. That should be enough reason for any Google fanboy to buy it. Secondly, the entire software is open source meaning it would be the ultimate gadget for geeky programmers around the world. Immediately after it's release, I would predict a plethora of third party programs developed by boy geniuses from their mother's basement that can handle anything from consolidating your finances to drying your clothes.

So this leaves us with several questions: Is Google's entry into the mobile industry one of competitive intention? Do they believe that they can beat out the competition (not just the iphone, but Nokia is actually the world's leading mobile phone manufacturer) and usurp the title of the "Jesus Phone"? Will their new venture be successful or profitable? Or are they throwing money into the ocean, testing the waters, and seeing what sticks?

The key to those questions, I believe, is in the fact that they are not going for the MVNO business nor are they becoming a hardware developer. Google is still, very much, sticking to their added company mission - which is to be the king of web apps on the Internet. Unlike ESPN, for example, who originally tried to sell their own cell phone and run their own mobile service or Apple whose sleek design for the iPhone is the major selling point, Google is trying to surreptitiously take over through the software side of things. Their competitive edge, it turns out, is that unlike the iPhone, where the OS is fully integrated and proprietary to only that unit, the Android OS can live on other cell phones and gadgets. The comparisons to Windows versus OSX is uncanny.

Ideally, there would be more than one phone that will run Google's Android. And I believe Google intends to put their Android software on as many phones as they can. Remind you of anything? How about Microsoft's Windows or Internet Explorer? It's essentially the same business strategy. Sure, there isn't much money making in the Operating System or Internet Browser business, but "he/she who controls the entrance controls all". In the end, THAT is Google's aim. At least that's my belief, take it or leave it. They know that Microsoft already has the OS world for PCs, but there isn't a dominant player out there for mobile phones yet. Whether they can or cannot gain followers, depends on the consumer's response. One thing is for sure, nothing spreads faster in the geeky world, than an open source product.

It's in a programmer's nature to pry open, dissect and recreate every single piece of new technology available. It gives programmers a sense of satisfaction, intellectual stimulation and power. (viruses anyone?) Remember when the first iPhone came out and within a month, someone figured out how to hack it, jailbreak it, unlock it, pawn it, etc and put out a release to thousands of developers who in return created a slew of native applications for those phones - way before Apple created their 2.0 version and Apps Store. Moreover, anyone can create a gadget in their garage and tie it in with Google's OS.

So my predictions is that it will first start off with success in the geek world and Google fanboys alike, but in order to grab the regular consumer's business, it will need to be on sexier, more appealing phones than what I've seen so far in the G1. One thing is for certain though - whoever dominates the cell phone market in Asia, will eventually win. Even though the iPhone is creating a huge buzz and garnering much success on American soil, the phones in Asia are generally 2-3 years ahead in technology with Nokia being the top dog in the game - thanks to a more robust and mature broadband network.

Apple's success will depend on how far ahead they can stay in front of other manufacturers in terms of ergonomics, hardware superiority and software integration. Also, in order to truly dominate, they have to become independent of existing phone companies and their devil contracts (most consumers don't bother to switch because of the high cost in terminating their contracts. I paid 175 to get out of Verizon - F%^&K You Verizon!). It is already rumored that after their contracts expire with AT&T, Apple will attempt to go on their own.

Google's success depends on how much traction they will get from their current users on their multiple software platforms. For instance, why would I switch to Google's phone if I don't use any of their web applications? If they get an insurmountable amount of loyal users, that would in turn gain a high demand for their products and services in the mobile market.

If the iPhone is indeed the "Jesus Phone". Then the G1 or Android should be aptly deemed the "G-sus Phone". And if the G-sus Phone wants to rule the cell phone world, it will have to go on a successful missionary trip to Asia. There are over 4 billion people there, roughly 60% of the world's population and Nokia currently reigns supreme. Better yet, they have been in the 3G game long before we even started and Apple or Google as a brand is not nearly as dominant there as it is here.