There has always been a communications gap between executives of phone companies, including wireless operators, and the executives of the Silicon Valley. Increasingly, mobile telephone companies have hoped to offer more net-like applications and content but have simultaneously erected barriers that prevent them from fully embracing the Internet culture. Two Silicon Valley companies are attempting to bridge (or bypass) this divide by changing the way handsets and their applications are designed and distributed. In 2007, Apple and Google each announced efforts to reshape the wireless industry. Apple launched the iPhone in January 2007 and just recently it updated the platform with the iPhone 3G. Google announced Android in November 2007 along with marketing partners—the Open Handset Alliance.
This report looks at the recent developments and presents our analysis of their respective initiatives. Among the highlights are: -Apple's iPhone had ambitions to change the wireless industry. Now it looks like it will just sell a large number of very exciting phones. -Google's Android Project will kick-start location-aware advertising by enabling the benefits of mobile Linux—if it can create a good revenue sharing model for its wireless operator partners. -Google will hedge its Android bet by working with others for location-aware searches, including Apple's iPhone.
