The internet is on fire with speculation that Google are about to release a Google branded mobile phone at a press conference today, January 5th 2010. The firm is expected to reveal the Nexus One for sale directly to consumers and through mobile operators. However Google remained tight lipped and refuse to confirm the announcement.

Photo’s of the potential release have appeared on websites such as Engadget and Gizmodo, showing a slim design and a rumoured 5 mega pixel camera. Early reviews do not seem good for the fledging phone with Engadget saying it was ‘ really not very different’ from existing mobile phones that use the Android system. They also point out that it may lack some of the standard smart phone features such as a multi touch screen. Although these reviews are based on leaked documents the information does appear to be consistent across the web so either the reviews are accurate or Google are creating a PR coup?!

So how likely is it that this new phone will eclipse Apples massive success with the iPhone? Pretty unlikely in our view. Even leaving the initial reviews to one side, Google do not have a good reputation at releasing new products. Although hugely successful, Google relies for 99% of its a revenue from its global Adwords and Adsense network. For the last decade Google have been attempting to diversify their revenue model into new areas through releasing hundreds of products. Very few have become commercial successes and even less that generate revenue. Not a good track record. Many analysts also believe that it does not make sense for Google to move into this hyper competitive market given the established presence of most of the major players.

Apple managed to enter the mobile phone market by a creating a truly revolutionary concept in the iPhone, a style icon that is also very good at being a phone. Is Google going to do the same?

Originally posted 2010-01-21 01:41:33.