This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Chromephone and Its Market Structure

Intel has made most CPUs for Chrome OS to date. It has, however, lagged far behind Qualcomm in the baseband business in the last two or more years, as exemplified by Qualcomm's winning the iPhone business. Chrome OS looks like it could be Intel's path to relevance in the mobile space.

Samsung is gunning hard for new business, and delivered the first quad-core Chrome OS laptop to date last October. One could easily see Samsung being involved in future Chromephone and Chromepad devices.

Broadcom has been behind plan since at least 2007 or 2008, when it talked a big game in the cellular baseband business. It hasn't had a competitive CPU either. Perhaps Chrome OS in phones and tablets will be Broadcom's big break? It's a long shot compared to the four aforementioned, but still it needs to be mentioned.

What about the overall system hardware, the devices?

Chromephones and Chromepads could fall into three hardware buckets:

1. Licensing to the OEMs.

This business is similar to the old-world Windows PC situation, or for that matter Google's current Chrome OS business. It differs from Android in the way that none of these OEMs could modify the software.

A list would look like this: Samsung, LG, HTC, Sony (SNE), Huawei, Acer, Asus, Lenovo (LNVGY), Dell (DELL) and HP (HPQ)

2. Motorola

Google owns 100% of Motorola, and says it's treating it "just like everyone else." On the other hand, we know that this is essentially impossible, even in theory. If Google treats it "just like everyone else," then why did it buy it in the first place?

Motorola would make Chromephones and Chromepads, just as it makes Android smartphones and tablets today. This should be obvious.

3. Google Itself

Google does engineer its own hardware, typically in conjunction with an ODM in China/Taiwan. This includes its ill-fated Q media player from last June, as well as the outstanding Google Pixel Chromebook, available as WiFi-only or on Verizon's (VZ) LTE network.


I envision that Google will start creating its own reference hardware for Chromepads and Chromephones -- as well as for Android, augmenting its current and much-beloved Nexus program where it works with partners such as Samsung, Asus and LG.

How Would Chromephones Be Sold?

Google will likely take an all-of-the-above approach to selling the mobile Chrome OS devices. This includes retail such as Wal-Mart (WMT) and Amazon (AMZN), as well as Google's own Web site. One can easily envision Google promoting these products more prominently in the Chrome browser, on its main search page.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GOOG $565.06 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs