The issue for Google, Jim says, is that it’s a software company. Building a mobile phone for them would be like Microsoft (MSFT) building a PC. And the closest Microsoft has come to getting into the hardware space has been the X-Box, which loses the company millions of dollars. “Google hasn’t learned much from Microsoft, but this is a lesson they might want to keep close at hand,” Jim says.
What Google could really bring to the party in the mobile space is open access software. Trying to compete head-to-head with the likes of Apple (AAPL) and Nokia (NOK) in the handset space doesn’t make sense for Google, Eric says. What makes sense to him, is to spend the money to get Google applications on others’ handsets.
What it boils down to is mobile advertising, Jim says. It’s a $65 million industry this year but is projected to be a $2 billion industry by 2010 – and Google wants a part of that. There isn’t much question as to whether Google will be a leader in wireless software, Jim says. But a hardware initiative is another question entirely.
Got something to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to email@example.com.
Trader disclosure: On Aug 2nd 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (ATVI), (HAS), (DIS); Bolling Owns (MPEL), (BP), (T), (XOM),Gold; Bolling Is Short Natural Gas; WWE Programs Air On Networks Of NBC Universal; NBC Universal Is The Parent Company Of CNBC