Hsmith+Final+Report+Proposal

TO: Proximity Mobile Team FROM: Hunter Smith DATE: January 11, 2010 SUBJECT: Proposal for report on Google

Google is offering its Nexus One smartphone through an online phone store that allows users to choose their provider. Since Google is one of the largest ad networks in the world, it could potentially dominate smartphone sales. I propose to write a report on the threat to other mobile providers posed by Google's new strategy for selling phones.

The Google strategy has two important consequences.
 * Need**

Google's unique model is the only that allows you to purchase their smart phones directly from the web. Google's site will:
 * have the potential to attract 1 billion mobile buyers globally through ads.
 * offer a wide range of third-party vendor ads that sell mobile add-ons such as earplugs, multimedia content, and links to Android apps.

The Nexus One may be bought unlocked with no immediate locked contracts. Google's new web retail strategy could possibly fail, but it also might stimulate unlocked phones into mainstream usage with smaller mobile carriers. Since Google is distributing the Nexus One to multiple carriers, competition rises in the market with lower prices on smartphones.

Clients of Proximity who want to target Gen-Y users need this report to understand that Google's new retail strategy could spark a revolution in how consumers buy mobile devices.

The proposed report "Google's New Online Phone Strategy," will cover the following topics: 
 * Topics**
 * Locked Phones and the current cell provider model
 * The New Google model
 * Google's current threat to online retailers.
 * The future of marketing smartphones
 * Possible attachments:** current pricing comparisons, list of 3rd parties who plan to partner with Google, device comparison chart.

The following sources were critical to the report.  Brown, Nick. (2010, January 7). //Google nexus one; a paradigm shift in online retailing//. Retrieved from []
 * Sources**

Brown reports on the Nexus One and Google's efforts to sell the phone exclusively online. Brown explains Google's criticized strategy, and how Google does not want to compete with any network operators. Brown also claims that Google is not a threat to any operators and will sell its new mobile device directly to customers online similar to any other merchandise retailer.

Strow, Adam. (2010, January 6). //Nexus one vs droid vs iphone comparison chart//. Retrieved from []

Strow analyzes Google's new Nexus One, Apples iPhone, Sprint's Palm Pre, and Motorola's Droid, in a comparison chart that breaks down the devices on all its key features. Strow notes that the biggest difference between all these smartphones is the total cost of ownership, simply because T-Mobiles plan with the Nexus One is cheaper than Verizon and Sprints plans with their devices.

Hamblen, Matt. (2010, January 6). //Nexus one another tactic in google's ad-revenue strategy//. Retrieved from []

Hamblen reports on the new Googles-hosted web store that allows you to purchase Android devices. Hamblem explains that since Google is one of the largest ad-networks in the world, the new site will potentially attract over 1 billion mobile-phone buyers. He also claims that Google's web store will likely feature ads from third party vendors selling multimedia as well as mobile equipment. Hamblem states that Google has control over the buying process and one must buy from the online store before any contracts are made.