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Tuesday, December 23, 2008 9:57 AM/EST

Google Gives Employees G1s... to Make Way For G2s?

By now many of you have surely seen the well circulated holiday e-mail from Google about T-Mobile G1s with custom Android logos being doled out to 85 percent of Googlers in lieu of a cash bonus for Christmas.

That's some 18,000-plus Android-based smart phones if Google truly has over 20,000 employees still on its active list. Holy handsets! Employees in countries where Google couldn't make this happen for legal reasons will get cash instead. Taking into account that not all Googlers will be T-Mobile customers, the phone is unlocked so it can work with any provider.

Read the Q&A from Google on Gizmodo and this memo on ValleyWag for complete details.

Google confirmed this slight gesture for me in a more succinct statement:

To thank everyone for their hard work, Google's holiday bonus is a Dream phone, which is the same device that T-Mobile markets as the G1. We've never developed anything like the Android software before, and this represented a unique opportunity to celebrate that achievement.

It would be interesting to see how many Googlers give up their iPhones for this custom G1, which has an Android logo on it, but let's have fun with this in a different way. Two days ago, I mulled the possibilities of the G2 launching from T-Mobile in January, wondering whether it would bother people who bought G1s just three months ago.

Perhaps Google is giving these G1s away to employees to make way for the G2s? Now that would be a hoot. Okay, enough silliness. Today I want to call out some of the comments readers offered regarding the G2 debate. Some of you hate the G1, some of you love it. I've played with one, but don't own one and I'm not going to quibble with you here.

First, in answer to my question about whether a G2 is coming from T-Mobile in January as Cell Phone Signal reported, or April, as Boy Genius reported, Stan wrote:

Today, Dec. 21, 2008 I was informed by a friend of mine who happens to be a T-Mobile store manager that there will indeed be a G2 release around the end of January. It is said to be a more curvaceous style that is much better looking, better camera, no boxy design like the G1 and slightly smaller. It will also have a stand up screen when using the Qwerty keyboard instead of the sliding method used in the G1.

Stan also wonders whether G1 customers will get a discount on the G2. Ha! That's funny.

Anyway, there are those of you who believe that because the G2 will be markedly different from the G1, it will be a treat to people expected more from the G1, or who just want more choice, as Kevin notes:

The G2 can come out whenever - tomorrow - it doesn't matter. Looking at the same information provided by yourself, it clearly is a different device. I know one is called the G1 and the other is called the G2 but why does that mean the G2 is the replacement? Not necessarily true is it? I personally hate touch screen keyboards and would stick with the G1 over the G2 for that reason. The iPhone customers were furious because the price was significantly cut, on the same product. Comparing apples to apples usually makes a lot more sense doesn't it?

I can't argue with you Kevin on this. At all. Ditto for Paul Kraetsch, who writes:

I expect the earliest to see the G2 would be in the spring. I think it could be a very good strategy. If Google releases the G2 as a high end phone ($300-$400), people will buy it if it delivers. At the same time I think the G1 will remain selling to the consumers who like a physical keyboard and who want a less expensive phone.

Though I am starting to wonder. With Apple commoditizing the smart phone space at $199 price points, will we ever have a need for devices at double the price. Do we need $2,000 laptops when we have $400 netbooks? Who can say? Choice is choice.

MS doesn't like the chatter:

Rants about rumors. That's useful. How about you pull off your blinders and remember that more choice is a good thing. Millions of people buy phones who don't follow all the up-to-the-minute news about technology. They get what they want and when their phone works, they don't look again at the market until they want something new.

Did I not agree choice is choice? MS is right.

Yet AM and Richard said they will be upset (not their word choice) if the G2 comes out so soon after the G1. To this, KevinFromOhio has the well thought out response:

It's not rocket science that if a version 1 product is at least reasonably well received in the market, another version will likely be released at some point. Yes, January seems like a pretty fast turn-around for a product that was launched in October, but as others have said, the G2 as described doesn't sound so much like an 'upgrade', exactly, as just a different phone that happens to use the same operating system. Are you mad at T-mobile because they have multiple models of Blackberry's, Nokia's, and Samsung's, too? Different models offer people different combo's of features. Some people want a real keyboard, others don't, so different models satisfy different users.

If you're mad because it has a feature you wish you had in your G1, all I can say is you shouldn't have bought the G1 if it was missing features you wanted. I took a look at the G1, and decided I wouldn't buy one, because it was missing features which I thought a phone of that caliber and price should have (such as support for Unlimited Hotspot Calling/UMA). I also wanted to see what apps came out for the OS, to see if there were actually going to be apps I wanted to buy from the app store. So, I'm waiting to see if they release one which matches the feature set *I* want.

Amen. That's a smart, rational consumer for you. He even goes on to suggest that is T-Mobile releases a G2 so soon after the G1, it should offer a trade-in program, giving G1 owners the option "to get the new phone either free or cheap, if they extend the contract another 6 months. They can turn around and re-sell the trade-ins to other customers for like $75 and a 2 year contract, and everybody's happy."

I'm not sure everyone would be happy. T-Mobile would lose serious bucks this way even if it curried favor with consumers. Google would probably just be thrilled to have more Android-based devices out there but, I'm sure T-Mobile doesn't want to lose whatever it's made on the G1s.

Perhaps T-mobile will embrace the spend money to make money notion, a dubious practice in this wretched economy. The sour economy alone should curb new device manufacturing for a bit, no? The G1 before Christmas made sense, but how much sense would a G2 make as we slide deeper into the recession?

What do you think?

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Comments (9)

HereAndNow :

People will still buy phones, even in a recession (e.g. if their phone breaks, if it is lost/stolen, etc.). The more Android phone options to choose from, the better.

I think that T-Mobile could take the GameStop approach to things. If they release the G2 soon, they could offer some sort of rebate on the G2 if G1 users turn in their used phones. Then, T-Mobile could turn around and sell these used G1 phones at a discount.

As a result, people who might not mind a few scratches on the back of the device might end up being new T-Mobile customers, both in hardware and in monthly service.

This entire process could continue to be repeated. A G3 could be released by fall of 2009, with a trade-in program for both used G1's and G2's... and then they could offer used G1's and G2's with service.

Eventually, you'd end up with a flood of Android based phones, each with different hardware configurations... some used, some new... all with T-Mobile service.

Then, when additional carriers start jumping on the bandwagon, they too could repeat this model. We'd end up with many many many choices of Android-based phones with different hardware configurations... some used... some new... all at different price-points. With this expanded usage of Android-based phones, and the roll-out of more and more updates and features to the Android OS, more and more apps will be written for the store, and the snowball effect will continue.

I expect that by the end of 2010, Android phones and various iterations of the iPhone and Blackberrys will completely dominate the market, and other phones (such as the Razr) and Microsoft-based phones will become the shrinking minority.

Sameer :

I read throug all the article but i need one strong comment where we say G1 is a Dud the reason.... well I have one and its real dud..Let me tell u why...
there are multiple things a smart phone today can do and but its important that we know what is he miost inmporatnt function of any handheld its the battery life. If the battery life is like g1 then all you do is keep charging and using it..If thats the philosophy of using a smart phone then I would say we are using a dud phone. The battery life of G1 sucks big time and I am amazed at people praising G1 ,,hey u know what i need to keep a reminder every 2 hours to recharge my G1. PLease comment on the battery life let those in google and HTC be ashamed of not taking care of basic and most important function.

You have to wonder how many Googlers would have preferred cash so they could buy an iPhone. :)

Compute This :

I am very interested in the possibility of a G2 and have been waiting for it before switching from AT&T to T-Mobile.

I will never, ever, never, ever buy anything from Apple including the iPhone because Apple is basically evil -- and has been almost since its inception. I started out life as an Apple II programmer, then Apple Corp showed its true colors by trying to muscle everyone out of the support and enhancement business. That was it for me, now as far as I am concerned, "Apple, a Pox Be On Your House..."

Further, I don't give a rats rear end that all the Beautiful People like Macs and iPhones and iPods and think the rest of us Google/Microsoft users are boorish right-wing Neanderthal mind-numbed robots who will never see the light that they, the Artsy Illiterati can see oh so clearly.

I like what Google has been doing, and I think they have indeed been pretty good at living up to their corporate slogan, "Don't Be Evil". I will support them with my words and my money. Apple, go to your room!

Little Birdie :

Unfortunately I agree with Sameer.. The battery life needs to be doubled. Right now I get a busy days use out of my Treo, or a full 24 hours with moderate use.. longer than that with little use. That is with EVDO (3G)enabled but bluetooth off. Apparently on the G1, you cannot get anywhere near that even with 3G turned off. I am also not happy with the lack of a normal headphone jack.. and not too keen on T-mobile either. But if the battery was better I'd go for it. I really don't mind if they had to make the phone a little bigger. I'm already carrying a huge phone.. the G1 is tiny in comparison.. So please, make the phone bigger and fill all that extra space with battery... Smart phone users are going to use their phones a lot.. so I don't know why HTC could not anticipate this problem...


catapult fiction :

Hey, so I have the G1 and it's a great device. I'm writing this post on it right now, but nobody cares. Bottom line, Android is an amazing operating system, no matter what it's running on. Hardware will continue getting smaller while increasing in efficiency, and that will just make everything better. Bring on the G2. Doesn't mean the G1 is a bad device, just means there are options now. Sweet.

The trade-in idea would be a great business move for Google and T-Mobile, too. For example, I bought the G1 but would happily switch to the G2 if it provides some nice new features and improvements. And then my G1 can be wiped and re-sold to someone who otherwise may not have been able to afford it. More exposure for Google! And more customers and income for T-Mobile and HTC, too.

So. Anyway. Let's see what happens. No matter what, I am supporting Google all the way. So should you.

MJ :

I am a G1 owner and I think it's a fantastic device. I am absolutely in love with it. At first I was surprised that the battery life was not the best, but considering all of the functionality and performance it provides above and beyond all other devices I've used before, I don't even think about it anymore.

I had this conversation with a T-Mobile employee about the "Wing" device when it came out. The knock on the Wing was that it was too slow (206 MHz CPU running Windows Mobile). I told him that if HTC would have equipped it with a CPU faster than 400 MHz, everyone would have complained about battery life. He agreed and of course, this is now the case with many G1 users.

Look folks, you can't have your cake and eat it too. You don't want a device that's too big, but you want a device that's fast and responds quickly. Hence, the weak battery life. The great thing about the G1 is that, unlike the iPhone, the battery can be replaced.

And for the headset jack complaint, doesn't the G1 now come with a 2.5 mm adapter? I have one, and I can now plug my G1 into my car radio's auxiliary jack so I can stream music. How awesome is that?

James :

If by chance I was working for Google, and they would give me a completely worthless phone instead of a bonus, I would start seeking employement with a new employer.

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