Google Phone vs. iPhone: Head to Head
Original Article by Diana Ransom and SmartMoney.com
Will the company that revolutionized Internet search send the Apple (AAPL) iPhone looking for answers?
At a press gathering on Tuesday, Google (GOOG) unveiled the Nexus One, a Google-branded smartphone that will run on the search giant's Android operating system. Some analysts say Google's new device, which is being built by HTC of Taiwan based on Google's specifications, will deal a stiff blow to Apple's hegemony in the smartphone arena.
Where could Google succeed where other competitors have failed? The Nexus One boasts speed improvements and enhanced camera capabilities, and the device will be sold unlocked. So rather than being forced to sign a contract with AT&T (T), a service provider that has been criticized for network mishaps and poor customer service ratings in the last year, buyers may purchase service plans separately from the device.
The Nexus One is also nice to look at, says Michael Gartenberg, the vice president of strategy and analysis for Interpret, a market researcher in Los Angeles. "Google's Nexus One is a beautifully designed device," he says. "It looks like Google looked at the iPhone and said we can do better."
For now, the iPhone is the dominant device in the sector. And critics of Google's device say the company's design improvements offer only slight advantages over existing devices and won't necessarily shake iPhone from its perch yet.
SmartMoney took a closer look at how Apple's iPhone and Google's new Nexus One match up:
Price
The unlocked version of the Nexus One, which will be sold directly to consumers via a new web store hosted by Google, will cost $529. A locked version of the phone, which will be sold initially by T-Mobile, will cost $179 with a two-year contract that will cost roughly $80 a month.
Apple's iPhone 3GS now costs $199 with a two-year contract with AT&T.
Advantage: Nexus One
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