Google is planning on releasing a product currently known as the GPhone sometime next year. There will be preloaded Google services on the device which include their email and search engine as well as interactive maps.
There has not been much clarification as to what the motivations of the company are exactly, but many industry experts believe that the company is trying to get in on the growing mobile ad market.
The phone will not likely compete with the iPhone as this would be a conflict of professional interests considering the very close relationship of Google and Apple. However, this GPhone could certainly be a threat to other developing handsets put out by other carriers. This launch will potentially put pressure on other carriers that have refused to open their networks up to this point.
Eric Schmidt, CEO of Google said “What’s interesting about the ads in the mobile phone is that they are twice as profitable or more than the non-mobile phone ads because they’re more personal.”
With that known, it will be curious should the GPhone prove to be a success who else will attempt to saturate the mobile ad networks.