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Google?s Android makes a splash at CES to ramp up Apple rivalry

Google made the biggest splash at the Consumer Electronics Show by unveiling specs for Android 3.0?a.k.a. Honeycomb?as its device manufacturer partners announced plans for a plethora of 4G smartphones and tablets based on the operating system.

The biggest announcement that Apple made during CES was the fact that AT&T will be selling the iPhone 3GS for $49, leaving the rumors of the iPhone moving to Verizon Wireless still unsubstantiated?for now. However, the four biggest carriers in the United States are all placing an emphasis on increasing their lineup of Android-based devices.

?The sheer number of smartphones and tablets announced at CES is breathtaking,? said Chetan Sharma, founder/president of Chetan Sharma Consulting, Seattle. ?Almost all major vendors had some new interesting products coming out, but the one that stuck out for me was Motorola?s Atix?it has some serious horsepower, and I was intrigued by the docking concept for the device.

?However, the success of all these devices will depend on pricing, launch date and what Apple does with iPhone 5 and iPad 2,? he said.

While Verizon Wireless remains the No. 1 carrier in the U.S., with somewhere around 8 million more subscribers than AT&T, the No. 2 player has been steadily closing the gap since landing exclusive rights to the iPhone.

However, even when the inevitable comes to pass and the iPhone is offered to Verizon customers, that will not stem the ever-rising tide of Android devices (see story).

With Android-based handsets on the four biggest carriers in the U.S. and many more on the way, as well as an oncoming wave of Android-based tablets to compete with the iPad, the rivalry between Google and Apple will continue to heat up over the course of 2011, as will the competition between Verizon and AT&T.

 ?Verizon has been adding fewer new customers compared to AT&T, but with the imminent release of iPhone and also LTE handsets, Verizon is in a position to regain some of its lost ground,? Mr. Sharma said.

?Overall, all of the Big Four [U.S. carriers] will continue to bring cool smartphones to the market to keep the mobile data market humming,? he said.

While Apple has had plenty of good news lately, many other competing handset manufacturers and operating systems are coming on strong (see story).

Research In Motion?s BlackBerry is still a strong competitor in North America, and the PlayBook tablet should make some waves.

Other players such as Microsoft?s Windows Phone 7, HP?s Palm WebOS and Nokia will try to step up their game in 2011 to steal market share from the current leaders.

However, once the iPhone is no longer a differentiator between AT&T and Verizon, then the battle will be won or lost on the Android battlefield?that is, which carrier can offer the best, most appealing lineup of Android-based smartphones.

Enter Google?s ?Honeycomb,? version 3.0 of Android, which has been designed with tablets in mind.

While Android smartphones are selling briskly, and while Samsung?s Galaxy Tab was a start, it remains to be seen whether Android-based tablets will be able to chip away at the iPad?s significant head-start.

?The biggest impact [of Android 3.0] will be that iPad is likely to get a competitor,? Mr. Sharma said. ?The iPad has had the tablet field for itself for the past two or three quarters.

?Some new tablets look good, but a lot depends on pricing,? he said. ?It has to be better than iPad by 20-50 percent or else the sales volumes will be low.?

So what should Google?s next move be?

Some see an opportunity for Google to branch out beyond its consumer-targeted mobile devices to go after the enterprise market.

?Google?s Honeycomb?Android 3.0?is yet another refinement as part of the company?s rapid innovation cycle,? said William Stofega, Boston-based program director of mobile device technology and trends at IDC. ?With every turn, every new code base, they are able to improve upon it and add new features.

?Google has often stated that it wants to play in the cloud, especially in the enterprise space, which is its long-term goal,? he said. ?It is making more and more effort to target enterprise users, and not just the mass market?Android is a great mass-market platform, but enterprise fits in well with their overall strategy.

?Android 3.0 is a stepping stone to reach that goal, and gives us an even broader and more in-depth view of what Google is up to.?

Will 4G live up to the hype?
The other major battleground among the carriers in 2011 is the rollout of their various 4G networks.

Verizon Wireless turned on the first large-scale 4G LTE network on Dec. 5, but it is an open question whether or not it will significantly affect consumer behavior in the near future (see story).

?In terms of 4G handsets, the ones announced by Verizon are the most impressive, but the thing is, we just don?t know, because this is a very early implementation of 4G, and I would also argue that the implementations are sort of primitive,? Mr. Stofega said. ?I don?t think we quite have the chipsets yet, and it?s incumbent on the carriers to provide good coverage?the device doesn?t matter if the coverage is spotty.

?Ubiquitous 4G coverage is going to take a while, and while it is great to see this technology come out, it really depends on how much spectrum the carriers have,? he said. ?Carriers have to build out their network and not oversell the fact that 4G is here?what does it mean to consumers?

?How does it affect my life and what does it do for me versus 3G? There is always hype, but there are proof points that still have to be covered.?

Final Take
Android 3.0 preview

Android in space

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