Google Nexus Offers Little Competition to Apple iPhone 2

Some of these apps are superb, most are crap. But that doesn't matter. What does matter is that the sheer mass of all of these creations creates a gargantuan barrier to any competing smartphone initiative that wants to take it on. Apple, without surrendering much control, has nevertheless found an alternative way to harness the intellectual capital of thousands of its smartest and most ambitious supporters. So now, to compete with the iPhone you pretty much have to match the best of the iPhone App catalog – and even with a well-developed user community, that won't be easy to do. Android might be able to catch up – and I emphasize "might" – by building its own developer community. But it hasn't happened yet.
The only other ways to catch Apple right now is to either price bomb the iPhone with a super cheap, super powerful smart phone – easier said than done, especially since you're giving away all of your profits – or come out with your own, revolutionary, new design. But nobody's been able to end run Apple yet; revolutionary new design being what that company does better than anybody.
But if any could stun the phone world it would be Google. It, too, is full of smart, arrogant people, the company has lots of dough, and because phones are outside its core business, it can in theory take a big risk without worrying about legacy issues. For example, as many industry insiders have suggested, Google could stun the tech world – and hit Apple at its weakest point – by coming out with a "Webphone," a device that uses the Internet, a la Skype, as its transmission medium and thus escaping forever the tyranny of the phone companies. There's a lot of problems with that strategy, of course, but it would certainly shock the world and put Apple on the defensive. Unfortunately, the early reports suggest that what Google will introduce next week, the Nexus One, will be a largely conventional smartphone. That's a pity because I suspect Google will never get this chance again. Meanwhile, strong on momentum and flush with cash, Apple isn't waiting around for the world to catch up with it. Two weeks from now, the company is expected to introduce yet another category-buster: this time it's rumored to be a tablet device – think of an oversized iPod Touch, but no doubt with much of the functionality of a personal computer (not to mention all of those iPhone apps). It will also no doubt, have one or two very cool and unexpected new features that will make it a gotta-have for Apple fanatics everywhere. Once again, Apple will have a new product that challenges convention, seemingly obsoletes an entire multibillion-dollar industry (in this case, handheld computers) while overwhelming a second, newer industry (netbooks, such as the Kindle) and yet is still stunning to look at. In other words, the Google phone will be a loser, even if it is a winner, because it will probably diminish Google's reputation as a tech juggernaut. Meanwhile, the Apple Tablet will be a winner, even if it is a loser, because (like those wacky iMac cubes and other designs of the last decade) it will continue to advance the company's reputation for risk-taking and cool.

http://abcnews.go.com/Business/GadgetGuide/google-nexus-beat-apple-iphone/story?id=9458204&page=2

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