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December 10, 2010
Google launched the latest iteration of its Android mobile operating system (OS) and unveiled the second Google branded smartphone, the Nexus S.
Android 2.3 (nicknamed 'Gingerbread') features several improvements, including user interface (UI) and text input refinements, updated copy/paste functionality, improved battery management and NFC (near field communications) support. The update will roll out to compatible Android handsets in the coming months.
Google also unveiled the Nexus S, replacing the Nexus One launched in January 2010. Nexus S is manufactured by Samsung (versus HTC for the Nexus One) and its main features include a 4" Super AMOLED touch screen, a front facing camera for video calls, Flash 10.1 support, and an NFC chip.
Probably the biggest draw to the Nexus S is the fact that software updates will be pushed immediately from Google to the handset. Other handsets' software update is dependent on handset manufacturer and operator optimization. This makes the Nexus S the new de facto Android development phone.
Unlike the Nexus One, Google is not offering the Nexus S direct to consumers. Instead, the phone will launch SIM-unlocked via the retailers Best Buy (in the US, $529) and Carphone Warehouse (UK, £549) in December 2010.
Android's open nature is however contributing to growing pains. High device/software fragmentation may prove problematic for developers hoping for fast and broad distribution of their software.
Another issue for Android is quality perception. By becoming the go-to, mainstream OS for mobile devices, new low-cost smartphones are quickly flooding the market. As is often the case, cost can be traded for quality: lower grade devices could have an adverse impact on the overall Android brand and hasten its drift towards commodity goods, where differentiation and high margin are harder to achieve for manufacturers.
Contributing to this phenomenon, Android is now featured on tablet devices, without official support from Google. Those (mostly unbranded) devices, made by Asian manufacturers and sold for as low as £99 in the UK, do little to improve Android's position as disastrous reviews can attest.
Android can however count on high developer interest and long-term commitment from smartphone brands such as HTC, Motorola, Sony Ericsson, LG and Samsung. Such support will prove crucial to push Android updates to most users in a timely manner.
Android 2.3 only offers incremental improvements. Version 3.0 ("Honeycomb"), due in 2011, will include more radical usability improvements and will officially support tablet form factors.
The Nexus S should not pose too much of a threat to other hardware partners, as it will mostly be pushed unlocked and its features do not particularly outclass the devices currently on offer. It is however going to be used heavily for development.
The NFC chip is among the most cutting edge features, and Google is likely to start medium-scale trials of the technology with retailers. Local retail (and subsequent advertising) is a key opportunity for the technology and for Google's advertising core business.
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