T-Mobile USA Launches Next Google Phone
09 July 2009 - 3:48AM
Dow Jones News
T-Mobile USA Wednesday showed off the second iteration of a
smart phone powered by Google Inc. (GOOG), MyTouch 3G, as the
struggling wireless carrier attempts to keep pace with other
high-profile device launches from its rivals.
T-Mobile, a unit of Deutsche Telekom AG (DT), is feeling the
pressure from both sides as the larger national players outdo it
with better phones and the pre-paid carriers undercut its monthly
plans.
Google's first phone powered by its Android mobile operating
system and built by HTC Corp. (2498.TW), the G1, was a rare success
for T-Mobile last year - a million units sold between its launch in
October to the end of 2008.
Cole Brodman, chief technology officer for T-Mobile, said he
expects MyTouch to outsell the G1, citing a broader appeal.
"A vast majority of customers will be new to Android and new to
smart phones," he said.
But a lot has changed since the first phone was released. Unlike
last year's launch event, Google founders Sergey Brin and Larry
Page were nowhere to be found. Handset makers Motorola Inc (MOT)
and Samsung Electronics Co. Ltd. (SSNHY), meanwhile, are making
Android phones for other carriers.
While aware of the potential competition, Brodman said that the
only way for Android to be successful is to have multiple phones on
different carriers.
As more Android phones hit the market, Google is expected to be
less visible. Brodman said the lack of Google's presence wouldn't
affect the launch strategy, and that the Web titan is more focused
on the evolution of its platforms and application market.
The MyTouch comes during a busy summer season of phone launches.
The Palm Inc. (PALM) Pre and the Apple Inc. (AAPL) iPhone 3GS have
already launched, and Research in Motion Ltd.'s (RIMM) Blackberry
Tour is set to hit stores later this month.
Android also isn't the newest platform. That honor goes to
Palm's WebOS software which was released on the Pre last month.
So how does T-Mobile plan to set itself apart? To begin, with a
better design. The MyTouch is a sleeker phone than the G1, and
there is more of a focus on different applications. The Android
Marketplace boasts 5,000, although it is still a tenth of the size
of Apple Inc.'s (AAPL) App Store.
Mimicking Sprint Nextel Corp.'s (S) Ready Now program, T-Mobile
will start "Make It Work," where store representatives will help
customers set up their MyTouch phones. The carrier will also
release an App Pack to help new subscribers find useful
programs.
Along the lines of personalization, T-Mobile will offer custom
cases for the device. The phones come packed in a travel case.
Reaction to the product, however, was mixed.
"Basically, it's the G1 without the keyboard," said Avi
Greengart, an analyst for Current Analysis. "They're just marketing
it differently."
The MyTouch was the result of addressing the criticisms of the
G1, said Jason MacKenzie, vice president of marketing for HTC's
U.S. business.
The product will hit stores on Aug. 5 and will sell for $199
with a two-year contract, $20 more than the G1.
While it is positioned as the flagship product for the second
half, Brodman said more Android phones would be released later this
year.
-By Roger Cheng, Dow Jones Newswires; 212-416-2153;
Roger.Cheng@dowjones.com