Abstract
On September 23, 2008, Google, together with Taiwanese HTC and the mobile operator T-Mobile, launched the G1 Dream phone in New York. This marked the official entry of Google into the Smartphone market, and the G1 is expected to accelerate changes in the mobile communications industry. Many vendors have started to strengthen promotions of their own advantages, so as to guard against consumers' expectations of the Google G1. With the unveiling of the G1 phone, Google has made a major step forward in its mobile Internet roadmap. The major point of interest is whether Google will be able to copy its success in the search engine business to the mobile terminal product field. This report will explore the potential impact of the G1 on the overall industry.
Following the rapid improvements in network technology, software applications and hardware specifications, the focus of mobile phones has moved from product characteristics (1G/2G/3G) to strengthening of functions (camera module resolution/multimedia playback), and now to mobile experience (personalized/Internet access at any time). At the same time, leaders in various industry chains have adopted different business models to move towards mobile Internet:
Exclusive Service Platform Structure
IT vendor Apple is a representative of this model. It launched the iPhone terminal with a simplified Mac OS X. Apple also launched MobileMe, its own wireless data service platform. The company mainly generates profit from service subscriptions and terminal sales. However, there are relatively few software developers and browser-supported software, and this is one of the main drawbacks of a closed system.
Sharing Service Platform Structure
Nokia is a representative of this model. Besides setting up the Symbian Foundation to increase the openness and market penetration of Symbian devices, the Ovi website is used as a portal to all network communities and Nokia stores. Opening the Ovi API enables users of other communities to link to Ovi, and this is major characteristic of Nokia's sharing service platform. Nokia's profit model revolves around fostering loyal users through a unified user interface experience. The company generates profit from these users' terminal purchases and service subscriptions.
Open Service Platform Structure
Google exemplifies this model. It aims for low-priced terminal devices through the open and free Android operating system in order to deconstruct the existing balance in the mobile phone market. With its own search engine technology at the core, it not only combines its own application services, but it also releases common API standards to increase platform, terminal, and network compatibility. Establishing a convenient mobile Internet environment is a major strategy of Google. The company mainly generates profit by finding the right audience for advertisements and charging fees from advertisers.
Major companies are adopting different business models to enter the mobile Internet sector. This not only symbolizes the coming together of different industries, on a deeper level it also means that the telecommunications industry is entering a new era. The emergence of new media, the Web 2.0 concept, multiple Internet access models, and the drop in network service costs, together with monthly-fee data service packages, are all important topics in this development.
Furthermore, the emergence of the mobile Internet business could impact the existing state of competition in the mobile phone industry. For telecom operators, their response to the changes in the telecom sector will affect their ability to maintain an important position in the mobile Internet era.