Apple has nothing to fear from T-mobile G1

By Chris Foresman |

T-mobile unveiled the G1 yesterday, an HTC-built handset using Google's Android mobile operating system. Many praise Google for its far more open approach to the OS and application distribution compared to Apple's walled garden. However, Piper Jaffray analyst Gene Muster says, in a note seen by AppleInsider, that Apple will experience "little or no impact on near-term iPhone sales" as a result of the G1 launch.

While both phones aim to bring smartphone features to the masses, Google simply provides the OS and a developer's SDK; handset manufacturers are free to license the OS for their hardware if they choose, similar in that respect to Symbian or Windows Mobile. Apple, on the other hand, makes the OS and the hardware, and developers must submit their apps for review before being allowed to distribute via the App Store.

Though the G1 is looking pretty darn open compared to the iPhone, it does have some issues that might drive away potential customers. For instance, it is SIM-locked to its carrier and can't be used as a tethered modem with a laptop, both common criticisms of the iPhone as well. The phone doesn't sync with a computer, instead relying solely on Google's mobile web-based applications, and has no Exchange support for enterprise customers. For heavy iTunes users, the handset isn't compatible with any FairPlay-protected content, and can't even play video out of the box. And, the hardware doesn't include a standard headphone jack, instead requiring an adapter for HTC's proprietary connector.

With the open-source nature of the OS and mated the right hardware, Android certainly has potential to be a viable competitor in today's mobile space. "[Yesterday's] announcement in itself does not change anything, however, if over the next 2 years Google has many similar small announcements, it will become a greater threat to the iPhone," said Munster. But the real question is: what will Apple have up its sleeve two years from now?