Summary
LG's announcement that they will provide devices for Android will change the mobile landscape yet again, as one of the largest worldwide manufacturers of handsets joins the Android rush.
LG has a real opportunity to create a true inflection point in the market that could create serious competition to Apples iPhone and RIM's Blackberry dominance in the smarpthone world. They need strong operator support to do so, however.
Analysis
LG has joined a growing list of companies, both operators and OEM’s who recently announced their support for Google Android in the coming months. LG now joins HTC and Motorola, and I’m sure many more who will be unveiling close to 20 devices very soon.
This development opens up a lot of possibilities for LG, since they have strong market share worldwide behind Nokia and Samsung. In particular, LG has a strong USA share with a large line of handsets on major carriers such as Verizon, Sprint and AT&T. This development is very possibly the biggest enabler to date for the mainstream market to have Android devices across multiple carriers.
LG could now create some serious competition for RIM and even Apple on the iPhone. Up until now, there has really only been one device on one carrier (T-Mobile) where Android could be found in the USA. The addition of Motorola and LG in particular creates a new dynamic by which Android becomes less of a novel new idea and more of a mainstream option for hundreds of millions of users around the world. This also will place increased pressure on Nokia to position their plans more clearly, particularly in the US market, for carriers and end consumers alike who will be seeking the latest smartphones. Since LG and Samsung have mainstream appeal much like Toyota and Honda in the automotive space, the potential for wide adoption of LG is strong. All of this of course will depend on the pricing, features and, in the end, how their devices stack up to the leaders – iPhone and Blackberry.
It is very possible that LG entering the Android market could cause a true inflection point for Android – enabling mainstream carriers and customers around the world to experience the platform as they upgrade their phones and seek out the latest alternatives to the iPhone and Blackberry. Clearly, however, the carriers who decide to support LG in this effort will need to invest a large amount into marketing and launching these devices in a way that attracts the public’s interest and shows them the value of this new device. Pricing will be key as well to support the robust data plans needed for a strong user experience.
Only time will tell for sure, but I believe this will create a step-function for Android in the mobile marketplace.
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
