Haters Gonna Hate — But Google Wallet is Significant

Google announced their Google Wallet program today where your phone is now your wallet.  This is made possible thanks to Near Field Communication, NFC, which I wrote back at the beginning of the year was key to so much of what Google was up to.  The test will begin this summer and run in 4 cities, and expansion to other cities will follow.

One particular “early review” from Jay Yarow at AlleyInsider says that adoption will be slow because using a credit card is too easy.  I think that is really near-sighted and here is why:

  • Security of your credit card in public places continues to be a problem.  In the UK for example, when you pay for a meal at a restaurant, they bring the credit card reader to your table so you can watch them scan the card.
  • Not everyone has the ability to have a credit card, as rules tighten around credit, and I assume they will continue to do so, Google Wallet gives parents the ability to distribute money to their kids to use.
  • Local deal and advertising via Google Wallet is going to be huge thanks to Google Offers.  While it is not a Groupon killer, Google has a head start on getting deals out to Android/Wallet users.
  • 5 years from now will we think about carrying a wallet, or will a single device do it all?  I am guessing/hoping it will be a single device.
  • Google just sent a huge shot across Apple’s bow with this feature.  I believe Apple will make some kind of NFC announcement at WWDC in 10 days, how can they not?

So haters can hate, but Google moved the ball down the field today with this announcement and for the first time since getting an iPhone 3+ years ago, it makes me question whether it’s time to switch.

[iPhone vs. Android] Sometimes Better Does Not Beat Popular

We have two distinct camps in the Clearspring offices.  Our CEO, Hooman Radfar, and a few others believes that Android will dominate and clean up the mobile phone market, while a large contingent believes that iPhone might not lead in market share but they will continue to be the phone that leads innovation and is the bright shiny object in the sky for many.

Last Monday a study came out that showed one third of teens wanted to buy an iPhone “soon.” That number is on top of the 17% of teens that already have iPhones.

The technorati has been quick to point out how Apple may be making the exact same mistakes as it did back in the 1980s as it pertains to their iOS platform strategy.  Experts will tell you by creating a walled garden for application developers and having a singular hardware and software platform, Apple is opening the door for Android to be the operating system for every other carrier and phone.  The one problem with that theory is demand.

Back in the late 1980s and early 1990s the purchase of personal computer purchases was price driven.  Back then Macs routinely cost over $2000, so when  competitors started building inferior machines for half the cost, Macs lost market share and the rest is history.

The mobile space is different.  First, the phone itself is cheaper as hardware in 2011 is a commodity.  Second, consumers have more purchasing power than they did back in the 1990s, and that despite a major recession in 2008-09, consumers seem to still be buying electronics and cutting back in other areas.  Third, consumers, and especially teens and young adults, want the cool and hip product, device or technology.  Even if Android is a better platform built on a better device, people think the iPhone is a status symbol.  Much like the BWM 3 series, there are better built cars for the price in the market place, but that does not stop people from buying the car because it is a status symbol.

So where does that leave us.  Sometimes a better technology is not preordained to be the most popular or the coolest.  If the teens of America have any say, Apple is going to have a hard time replicating the failures of the late 1980s, simply because the brand is considered hip by youth.