Google G1 T-Mobile Phones

On November 5, 2007, the Open Handset Alliance, a group of more than 30 technology and mobile companies, issued press releases that described their plans to create a mobile platform that was completely open-source, in order to help facilitate advanced mobile application development. The Open Handset Alliance is composed of companies such as Google, Acer, Garmin, LG Electronics, Motorola, Samsung, Sony Ericcson, Toshiba, Intel, Sprint, and eBay. This open-source mobile device project was termed the “Android Open Source Project”.

Less than a year later, on October 22, 2008, T-Mobile released the HTC Android G1 mobile device, the world’s first Android-powered phone. Based off of Linux software (the original open-source operating system), the G1 made headlines simply because it became known as the “Google phone”. With many Google applications already pre-installed, the G1 was equipped with new applications that had never before been seen in mobile devices. Even more importantly, the G1 has an open-source marketplace for its apps; G1 owners can visit the Android Market and obtain all kinds of new applications that were created by developers around the world.

Why would Google and a number of other technology companies push towards an open-source phone? According to the Open Handset Alliance, they intended to promote innovative software development for mobile devices, and spread these innovations to other web technologies. In other words, Google, along with other tech firms, are always looking for new talent and new ideas to bank off of.

However, there are several other reasons that the Open Handset Alliance may have been created.

First, there is no doubt that the release of Apple’s iPhone changed the mobile device industry in tremendous ways. The iPhone is known for its extensive applications: anything from games to calculating tools. Applications are downloaded from the Apple iPhone store, and each app generally costs around $2 each.

According to Vikrant Gandhi, an analyst with Frost & Sullivan, iPhone users have downloaded more than a billion applications. Gandhi expects that the number of applications downloaded will reach the 2 billion mark by the end of the year. With 50,000+ different apps available at the Apple iPhone app store, you can see how other corporations may be envious of the amount of dough that Apple is generating due to its mobile applications business model. Even more disturbing to Apple competitors: Apple may be developing new technologies based off of the many innovative ideas put forth by iPhone apps.

It is no surprise, then, that other corporations have made efforts to muscle in on the mobile applications sector. According to company movements, all major software companies are backing different “standard” approaches to open source mobile phone platforms. Intel revealed its poker hand when it acquired the Linux open source software development company OpenedHand.

These organizations recognize the mass appeal that mobile applications have generated. Software companies have assessed the dollar value of this appeal, and are determined to bring applications’ ingenious ideas to other technologies. Due to this commitment, we are now seeing “open source” mobile devices and applications encouraged by industry leaders, the best example being the Open Handset Alliance and the Android app store.

What will we see in the future, based off the innovations uncovered by open-source mobile device apps? Unfortunately, as a fortune-teller would say, the future is unclear. Currently, Android’s open source software development has been fairly unprofitable. According to Matt Hall, of the Larva Labs game developer group, Google’s Android app store isn’t doing so well. During August, 2009, the company generated an average revenue of approximately $60 per day. With 3 million G1 users, that rate of return is pathetic.

If innovative software efforts do not come forth through the open source initiative, it is possible that the major software and tech companies will lose their competitive advantage to Apple, which could create new web technologies based on iPhone apps. Should the G1 open source initiative fail to achieve its goals, other tech companies may have to fight for new innovations the hard way. The members of the Open Handset alliance will have to spend extreme amounts of money and acquire the software developers that created iPhone’s apps.

The success of the G1 open source initiative should prove to become part of surface-level discussions soon. T-Mobile just released the G2 Android, and momentum for the open source initiative could resurface with its release. Stay tuned.

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