Analysts Reserved Heading into Nexus One Launch (GOOG)

As expected, analysts are remaining cautious regarding GOOG even as the tech world is abuzz regarding the potential of Google’s new phone, the Nexus One. Key quote from the blurb on GOOG:

“Despite the excitement, we wonder how more aggressive pursuit of the hardware side of the mobile market will affect GOOG’s business model,” wrote Kessler.

Analysts are correct to remain hesitant – GOOG is a company with practically no hardware experience getting involved in the smartphone industry well after Apple has achieved total dominance. Additionally, the Nexus One is looking less like THE SMARTPHONE and more like a smartphone. I remain very optimistic about GOOG and their plans for telephony. I think all signs point to an eventual transition to the internet as phone provider, which is a domain where GOOG is holding all the cards. Could the Nexus One launch be a disappointment? Of course. But this is a plan that really only has upside for GOOG, and for every percentage increase in market share Android gains versus the iPhone, GOOG will find additional revenue.


1 Response to “Analysts Reserved Heading into Nexus One Launch (GOOG)”

  1. 1 New Idea: Google (GOOG) Part II « Invest Smarter Trackback on January 5, 2010 at 12:28 am

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