[NEWS] Google Hearts Verizon

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Google Hearts Verizon


Android could control 14% of the Smartphone market by 2012.



The CTIA conference on Information Technology and Entertainment took place this week. One would have expected more announcements out of the conference given the excitement these days building around mobility. That said, one big announcement did come from the largest U.S. carrier, Verizon (88 million subscribers), and Google. They plan to launch several Android-based smart phones by the end of the year and will collaborate on software and services. The announcement is another chapter in the Apple-Google saga (Google CEO Eric Schmidt stepping down from Apples board; Apple denying Google voice app on the iPhone) and another data point in the ongoing intrigue (or wishful thinking by Apple iPhone loyalists) when or if Verizon will offer Apples iPhones.
Granted, these sagas matter. The U.S. is the most competitive mobile market in the world, given that 95% of mobile subscribers have at least three carriers to choose from. Moreover, CTIA reports that the wireless industry in the U.S. is $860 billion, growing at five times the rate of the economy as a whole. No wonder alliances are being formed, strategies are being announced and speculation abounds as companies and investors try to figure out how to make money.

Google's ( GOOG - news - people ) strategy is interesting. It is giving away the Android operating system to the handset providers. Currently, there are seven Android models on the market, made by HTC, T-Mobile and Samsung, and offered by T-Mobile and Sprint ( S - news - people ) in the U.S. The Android HTC G1 is ranked No. 7 in the top 10 selling smart phones in the US, behind four Research in Motion ( RIMM - news - people ) Blackberry models and two Apple ( AAPL - news - people ) iPhone models.
Android has about 2% market share today, but Gartner came out this week and forecast that Androids market share will increase to over 14% by 2012. Gartners forecast assumes that Androids market share will be boosted by the number of handsets available and that consumers will buy them. Certainly, Google is planning to proliferate Android handsets in the marketplace. On its earnings call, Google indicated that it would bring 18-20 new Android models to the market by year end, and Verizon ( VZ - news - people ) brings the largest subscriber base as an audience and marketing clout.









originally found here:

http://www.forbes.com/2009/10/09/travlos-verizon-iphone-intelligent-investing-ctia.html