Tomahawk, WI 11/19/2013 (BasicsMedia) – It is almost a foregone conclusion that the search engine company Google Inc (NASDAQ:GOOG) is not in the smartphone business for direct profits. The company has its two main mobile devices namely Moto G and Nexus trading. Moto G is a low-cost phone asking for nearly half the cost of its peers in the market. This mobile device is developed by Motorola after GOOG acquired the company. GOOG also has Nexus 5, its true smartphone device that is already giving Apple and Samsung big headache in the smartphone market. Unlike Apple and Samsung that have priced their smartphones higher in the market, Nexus 5 offer just the very wonderful features and goes for just a fraction of the cost smartphones offered by the kingpins.

In order to popularize Nexus 5, GOOG is reported to be heading to China for a relationship with a local company. China is the world’s fastest growing economy and every big company is eying the market. If Google Inc (NASDAQ:GOOG) manages to penetrate China’s market with its Nexus 5, it would have significant sales.

GOOG enters smartphone to increase internet search

Google Inc (NASDAQ:GOOG) and Facebook seem to have the same agenda. FB recently signed up to join an association of mobile operators. The company is seeking to expand internet coverage especially to regions yet to be covered by internet. The company also hopes to team up with telecoms operators to drive down the cost of technology so that a lot more people can enjoy cheap technology in terms of devices and data plans. GOOG is also looking at its entry into smartphone market through the same angle. It hopes that pricing smartphones lowly will help increase the uptake of the devices. When more people have connection to the internet, they would be joining billions of other on the web searching Google. And this means that they will be more people feeding its revenue column.

The question however is whether Google Inc (NASDAQ:GOOG) will be able to achieve its goal or if it would return with a bruised face from the competition. I think GOOG believes that it won’t take long before big players in the smartphone industry feel the pinch of price reduction and also lower the cost of their devices. This way the $342.94 billion capped company would have won the game. However, if the smartphone kingpins Apple and Samsung are able to uphold the global smartphone cost high, GOOG would be on the losing end. But GOOG is not known for investment blunders and so a los would be a rare occurrence Considering the shift in the economy where consumers have increasingly become price sensitive, its likely that GOOG could hurt the ego of the lead players in the market.

The good thing is that GOOG’s goal is being aided by other players, perhaps unwittingly. In China, a lot of local smartphone makers are already tilting the competition scale. Moreover, they are targeting other emerging markets where buyers are likely to be price sensitive, thus effectively locking the likes of Apple from such markets.

Google Inc (NASDAQ:GOOG) winning this campaign will obviously be a victory for its shareholders and investors due to increase in revenue and probably earnings.

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