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The rumors of Google launching a cell phone have proven true. A European executive of Google has confirmed that Google is coming out with a cell phone in the next year or so. It is true that Google is working on a cell phone but it is not very clear if Google will produce its own phone or whether it will only provide the software and applications on an already existing mobile phone. Apparently Google is in talks with a Taiwanese firm for design of a phone although Google has not openly declared it. It is said that Google has invested hundreds of millions of dollars already on its cell phone project.

A few months back, Eric Schmidt had said: “Your mobile phone should be free. It just makes sense that subsidies should increase”. It looks like Google might not charge cell phone fees. However Google will make this up with advertisements on the mobile. It looks like Ad supported phones will become a reality. Showing ads on cell phones is not very big market at present but it might all change.

Betting against Google is not the wisest thing to do. With its creative strategies it could well create a niche in the mobile realm. Google has cash assets of $13 billion in its pocket. And Google is one of the smartest companies out there at the moment.

What do you think? Will Google succeed with its Mobile Phone dreams? Will Google Phone take on the Apple I-Phone?


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