It's only just been released, but expectations are already high, and early reviews are glowing. Google's
But while some kudos are warranted even before a wide population tests the offering, I'm a little concerned about displaced opinions and comparisons that many investors seem to hold. Most scary to me is that some investors still seem to think that Google is a device maker and that the phone should be compared to Apple's
The handset market and the application market that Google is going after are very different, and success in each area comes in completely different ways. More importantly, the factors in making a piece of hardware a success don't necessarily translate into similar levels of high-margin revenue from scalable applications. If you could crack open Apple's books to see the revenue from iPhones compared to the revenue from iTunes downloads I imagine this would become very apparent.
The other aspect of the Android that could deliver some investors a rude awakening is that it will likely be a niche product for much longer than many expect. Niche is certainly not bad when you're talking even of numerous Android deployments that could be floating around by next year. But it's a far cry from the mainstream, where the ubiquity offers brand scale that leads to significant revenue.
Consider that Motorola
It will take Google time to migrate mainstream user interest from the desktop to mobile as well. While competition from Verizon
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Fool contributor Dave Mock uses applications on his phone, but it's still a sub-par experience. He owns shares of Motorola. Nokia is an Inside Value selection. Google is a Rule Breakers pick. Apple is a Stock Advisor recommendation. The Fool's disclosure policy does have many striking similarities to the Borg.