Smart Phone Showdown: iPhone vs Google's Nexus

A showdown between two of the largest players in the high-tech industry appears to be on the horizon. Google appears to be ready to take on Apple with the introduction of their Nexus smart phone. The ongoing theme in the industry recently has been to compare the two in order to forecast a prediction about the Nexus' success. While the iPhone has been a huge hit and is probably the most popular phone in the industry, it is very likely for the search engine supernova's Nexus to receive a huge reception as well.

I have a Mac, but I use Google a lot and I'm intrigued by both phones. I have a friend who was a PC guy, but worked on Macs all summer programming iPhone applications. He bought a Mac computer as a result and has been itching to get an iPhone. However, since news of the Nexus came out, he has changed his wishlist to include the Nexus. Brand loyalty will certainly be a factor. Unfortunately, the iPhone is not offered on my network (Verizon), and the Nexus looks like it will be offered to T-Mobile and AT&T customers:

Virtually all the information on the Google Nexus One that come out so far indicates that it will fully support only T-Mobile's network, including its 3G network. The version that was approved by the FCC has support for only T-Mobile's version of HSPA, so AT&T customers using this device will limited to voice and the 2.5G standard EDGE.

However, an unconfirmed report says that Google is not going to put all its eggs in one basket, and will offer a second version of this Android OS smartphone with support for AT&T's 3G service.

Color me as one of the people that is kind of disappointed by this revelation. However, I'm glad that I will be able to see the kind of reception that the phones will get. I currently have a Blackberry, and I can't say that I'm at all disappointed with it. When I first saw the iPhone, I noticed that people were always on their phone to check everything. It's cool to have that tool at hand, but you just look so self-involved when you have it. I thought the same of Blackberry users.

Then I got the Blackberry, and I started doing the same thing. Then my Blackberry broke, so I was without a phone for a little while. It taught me to get back to who I was. Once I got my replacement phone, I started using it less than I had with my previous phone. Yeah, it's still a great tool to have. However, while I may still check my phone more than I should, I definitely check it less than before. The benefit of the Nexus not being on my network is that I won't buy it any time soon and that I won't be checking it all the time because of how proud I am to own one.

Early reports of the Google Nexus have come out from some Google employees who received them to try out. Reviews and reports have made it to media outlets, and Attack of the Show has this interview with engadget.com's Joshua Topolsky:

This was about a month ago, and as more information about the Nexus has come out, more comparisons, predictions, and analysis have been made about its impact on the cell phone industry and in particular its competition with the iPhone. A Gerson Lehrman Group analysis had this to say:

Existing iPhone users may find it hard to come up with any serious complaints on the new Google phone. However, the minimal differences are not likely to be enough for users to switch and go through the trouble of learning the new system. Still, if a new buyer that has not used either system compared them side-by-side, there may be a higher probability this time in choosing Google’s new version.

In fact, we anticipate that users will find it to be very iPhone-like. They are both about the same size, with perhaps the Nexus One, being a little thinner. They both will have a full soft keyboard touchscreen.

Of course, the Nexus One will not have nearly as many applications, but almost all of them are free. It has also been developed to be exactly opposite the iPhone, which is very locked down and in which so many people control the particular apps that can be put on the device.

While the Nexus appears to offer a high speed processor along with a better screen, camera, and two speakers, I think what will determine its success will be how it performs. What's more important than sales success for me as a consumer of a phone is my ability to get the most out of my phone. The iPhone offers so much, but with its exclusive contract with AT&T, AT&T's network has struggled to provide the support necessary for the phone. The iPhone signified a huge boost in the amount of data that AT&T's network had to handle. It has not been up to the challenge and its competitors have benefited as a result.

Why is it that people continue to buy Blackberry's when the iPhone is a better phone? The Network and ability to use a phone is paramount. Verizon is annihilating AT&T about its 3G network, and the reason why Verizon's 3G network is better is because of the iPhone. Whether Google's Nexus is tied down to a single carrier or whether it is unlocked for the world will have a significant effect on how it is viewed. Google could set a new trend by foregoing exclusivity. The idea of having a contract is that the carrier will subsidize the cost of the phone. It's a deal that works out well for both the carrier and the phone producer. However, the consumers suffer because they can't get the most out of their phone. If the Nexus is unlocked, users can be free to join whatever network they want without a strict long-term contract.

As far as news about the iPhone, it appears that Apple will try to get not renew its exclusive contract with AT&T and look to be available on other providers as well. It looks like Verizon could be in the future of the iPhone, according to CNET:

Gene Munster, senior research analyst for investment bank Piper Jaffray, said in a research note to clients 0Wednesday that he believes there is a 70 percent chance that Apple will launch a new iPhone with Verizon in 2010. Munster puts the timing of such a move around the middle of the year.

That makes sense, since Apple has used June and July to launch all three of its iPhone models. The company also used the summer months to debut the App Store in 2008. It seems reasonable to speculate that Apple would continue with its schedule of introducing a new iPhone in mid-2010.

Munster said a move to Verizon would more than double Apple's current potential market by 89 million subscribers, adding to the already 82 million available on AT&T.

Of course, at this point the big problem is Apple's arrangement with AT&T as its exclusive carrier in the U.S. That deal is widely thought to end in 2010, although talks between the two companies are said to be ongoing, according to The Wall Street Journal.

Here's the Wall Street Journal article, for reference. While the iPhone may still be locked into contracts with carriers, a move away from exclusivity would make a great deal of sense as it would open the phone up to many more potential customers. I don't know if I personally would buy a iPhone immediately, but it would be a welcome addition to the Verizon line up. Regardless, with the increased competition in the market for phones, the consumer is the one that should benefit. 2010 should introduce a Cold War type arms race to put the best phone with the best services on the market.

Get your popcorn out, it's a smart phone showdown.