Bottom Line: Apple's iPhone Still Beats Google's G1 Android GPhone

Dan Frommer | September 23, 2008 1:50 PM

There's no shortage of first-look reviews of Google's (GOOG) new Android "G1" GPhone today, so now that we've played with one ourselves, we'll cut to the chase: Google's first effort at a mobile phone is a good one, but Apple's (AAPL) iPhone 3G is still the high-end smartphone to beat.

Why? Google's G1 is great for programmers, geeks, and open-source lovers who want to be able to do science projects with their phone. It's priced roughly equivalently to the iPhone. (G1/T-Mobile: $179 plus minimum monthly data plan of $25; iPhone/AT&T $199/$30.) And perhaps someday it'll be great for the rest of us who just want to be able to make phone calls, surf the Web, play games, listen to music, and chat. But right now, Apple still has an edge. Why?

• More polished, intuitive user interface. Google's Android OS is powerful and looks attractive, but it's a bit too Windows-like. Apple's iPhone user interface is simpler, cleaner, and just makes more sense.
• We're spoiled by multi-touch. We tried "pinching" Google Maps to zoom out on Google's own phone, and were shot down. It'd be easy for Apple to add Street View maps -- very slick on the G1 -- to their Maps app with a software update; but HTC and Google simply can't have multi-touch on this phone.
• The G1's keyboard is nice, but what are you really going to be typing on a phone? (Especially one that can't access Exchange/BlackBerry email accounts.) Is it worth making the phone almost twice as thick as the iPhone? Maybe not.
• Apple's App Store is a year ahead of Google's. We're surprised by how many apps we've downloaded, especially professionally produced games, and how much time we spend using them. At Google's launch event today, we heard about two geeky apps for the G1, but nothing about partnerships with Electronic Arts or other big gaming shops. Google's Android App Store will be sparse at the beginning, and will take a while to fill out.
• Syncing the iPhone to your computer is a breeze. Music comes from iTunes, photos from iPhoto, etc. Google won't have an iTunes-like desktop syncing app, and instead will sync up with Google's various Internet-based services. We still don't know how we'll be able to move music from our computer to our phone, but we're betting it won't be nearly as simple and seamless as Apple's made it.
• We're not nearly as hung up about stats as some of our blogging brethren. But Google's G1 comes with a tiny percentage of the memory -- 1 GB -- that Apple's iPhone comes with -- 8 GB. Sure, you can buy an 8-gig card for $50, but there goes any cost savings over the iPhone.
  

Nothing against Google: The G1 is a fine phone, and we see a potentially bright future for Android. But so far, our money's still with Apple.

Bonus: Video of the G1's free Pac-Man game.

Google cell move aims to give legs to Android

Google Inc. took its most ambitious step yet toward leveraging its dominance of the Internet into a leading role in the cellular marketplace when it unveiled the G1, the first smart phone to run the company's Android mobile operating system.

Although Google's move into the mobile space might be read as a shot across the bow of Apple Inc. and established smart phone vendors such as Research In Motion Ltd. and Nokia Corp., the Internet titan's plans for Android stretch far beyond the G1.

Google is interested less in cellphones than in securing a dominant role for its Android software and its search engine on the latest generation of multifunction smart phones.

"Google ultimately wants to be a partner with all the major carriers to make sure that it has prime real estate on handsets," said Colin Gillis, an Internet equity analyst with Canaccord Adams in New York.

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"It's the same reason why they had to roll out [the Internet browser] Chrome," he said. "They're all defensive positionings to make sure that search and apps work effectively across multiple platforms. It's really a strategic gain. Mobile is obviously the next big landscape."

Google is looking to extend its control over Web searches and Internet advertising to the mobile Web. The G1 allows users easy access to Google's search engine, its Gmail e-mail service and its Google Maps program, all properties on which Google can deliver targeted advertising.

"Google's play is really to mirror its success on the traditional Web on the mobile Web," said Chris Hazelton, a telecom analyst with The 451 Group in Boston. "They want to be foremost in the minds of Web users in terms of search on the mobile Web."

Analysts say that Google will likely work out a deal with carriers to provide them with a slice of the new advertising revenue generated from the G1.

Eventually, Google believes it will generate more revenue from the mobile Web than the PC Web.

The G1, which is manufactured by HTC Corp. and will go on sale in the U.S. on Oct. 22 through Deutsche Telekon AG's T-Mobile USA service, features a touch screen interface similar to the iPhone, a slide out QWERTY keypad, a GPS chip and WiFi capabilities. The device uses the same next-generation (3G) network technology as Apple's iPhone and RIM's BlackBerry Bold.

It will cost $179 (U.S.) - $20 less than Apple's iPhone 3G - and users will be able to customize their G1 with games and other software from a Google-sponsored Android Marketplace.

But Canadians should not expect the G1 to be available in this country any time soon. Google has no set timetable for bringing an Android-capable phone to Canada, a company spokeswoman said.

In another move which could rankle Apple, Google also announced a partnership with Amazon.com Inc. that will see the online retail kingpin's Amazon MP3 music store come bundled on the G1. The Amazon partnership will allow users to purchase music - free of copyright protection software - directly from their phone, representing a direct challenge to Apple's iTunes music service.

"Apple now is the darling of the moment in terms of content distribution," said Carmi Levy, senior vice-president of strategic planning for AR Communications Inc. "This is a message to Apple that Google refuses to cede the fight. Expect the battle for content supremacy to shift into the mobile environment very quickly."

Analysts say T-Mobile could sell as many as 500,000 G1 devices before the end of the year.

In November, Google created the Open Handset Alliance with a consortium of 34 companies which have all pledged to use Android, including telecom carriers, software companies and cellphone manufacturers such as LG Electronics Motorola Inc. and Samsung Electronics Co. Ltd.

The G1 is the first of a slew of Android-capable handsets which are expected to hit the market in the coming months.

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First of many

The G1 is not "The Gphone," rather it is just the first of many Gphones. Through its partnerships, Google is aiming to have Android software running on dozens of devices from various manufacturers.

Open Source

Android is open source software, which means that it can be shared, updated and tweaked by developers to customize it for new features and technologies.

Presence

The G1 will feature "push" Gmail service as well as Google Talk presence, a feature that will allow users to determine the location and availability of people in their instant message contact list.

Open Marketplace

Unlike Apple, which vets every application sold in its App Store, Google's Android Marketplace will allow anyone to post games and other software to customize the G1. Supporters applaud the openness; critics worry it will lead to "malware" and viruses on cellphones.

Matt Hartley