Google's Android Phone: Will It Hurt The Droid?

While basking in the launch of their Android operating system for mobile devices, Google is feeling a little left out of its own party. Verizon Wireless and Motorola borrowed, tweaked and sort of hijacked the Android brand through the massive Droid campaign. Lacking a device of its own till now, Google is finally ready to compete with the big boys.

Finally, Google is about to give the world an actual Google phone, running on the HTC G1 cellphone. The device will include a branded handset and includes free phone service. Though the G1 has already been (mis)identified as the "first Google phone," this new phone will be emblazoned with Google's company logo. It will feature Google Voice, the company's phone service, which recently overcame its FCC troubles, and connect users to that ominous (to some) Google Cloud. A touchscreen display and an extremely fast processing system, “far exceeding that of the iPhone 3G S” are also included.

The mobile dance for positioning has made for some interesting bedfellows, or maybe better, bed-frenemies. Motorola, Verizon and Google have partnered on the Droid. (Google has a lot of catching up to do after spending a reported $100M in marketing the collaboration). But with its free phone service, and patch-in to the full range of Google services, Google's offering could easily damage efforts by its Droid partners. Meanwhile, Apple's beefed-up iPhone, touted as a possible Droid-killer, will reportedly be available with Verizon service, putting Verizon on the possible outs with Motorola as well as with Google.

Motorola, the big winner of the Droid battle, may have the most to lose, since its 2010 plans include the release of at least 12 Android-based smartphones. These efforts are seemingly threatened both by the rumored new iPhone and by Google's go-it-alone launch. (Which isn't really solo, since HTC is Google's devicemaker -- but after years of making phones to be branded by others, HTC is now moving toward a massive branding campaign of its own, just to make things even more complex.)

An even wide range of competitors are suddenly shaking in their boots at Google's potential success, including Skype. Google Voice would cut into their well-cornered market and take away revenue. The search engine-turned-international-superpower recently acquired AdMob in an effort to solidify its place in the mobile ad market.

Yet to gauge: consumer reaction. The enticement of free service is clear-cut. Being connected to Google's Cloud is great for certain power users, but others may not care to figure out how to make all these things fit together. While Google Voice is available by invite only, many who have received the exclusive access have yet to figure out how to use it. Of course, Google has a way of making its services seamless (log into Gmail, and YouTube will recognize you), but that is starting to creep some people out.

And beyond all that, will consumers really trust Google for hardware? As brandchannel's Stephanie Startz observes, "While it's operating system is intuitive, who knows what their handset would be like?" The company certainly has no brand equity in anything you can touch -- it's in the cloud business!

Startz also wonders whether the proliferation of Android-related products could confuse consumers, or -- worse for Google, which depends on users' trust -- make them feel duped. "You create this one product, claim it is superior, allow outside vendors to use it and then after the big release you say you've got something better?"

Nevertheles, the range of services may prove seductive. Requests are being taken to receive access to transcribed voicemails, cheap international call prices, custom greetings, among other features. We've all gotten used to clicking over to Google for web-searching (it's my Firefox homepage). Can it achieve the same ubiquity, and become our go-to for cellular phone use?