Wednesday, December 10, 2008

UPDATE 2-More mobile phone makers back Google's Android

SAN FRANCISCO, Dec 9 (Reuters) - Fourteen of the world's largest mobile phone and chip makers, including Sony Ericsson, Vodafone Group Plc (VOD.L: Quote, Profile, Research, Stock Buzz) and ARM Holdings Plc (ARM.L: Quote, Profile, Research, Stock Buzz), joined the Open Handset Alliance on Tuesday to support the Android mobile device platform developed by Google Inc (GOOG.O: Quote, Profile, Research, Stock Buzz).

The new members' pledge to back the Android software is a significant feat for Google in the mobile phone industry, as its T-Mobile G1 phone takes on rival Apple Inc's (AAPL.O: Quote, Profile, Research, Stock Buzz) popular iPhone 3G.

But despite the big-name additions to the Open Handset Alliance, analysts say what matters is whether the new members introduce more Android-supported smartphones in 2009 and 2010 to edge out competitors who also use open-source Linux software for mobile phones, such as Nokia-owned smartphone software maker Symbian.

"It's great to get these folks on board...now (the Open Handset Alliance) has to make sure these licenses actually ship products," said research firm Jupitermedia's vice president of mobile strategy, Michael Gartenberg.

The first company set to introduce a mobile device that uses the Android operating system is Sony Ericsson, a joint venture of Japan's Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) and Sweden's Ericsson (ERICb.ST: Quote, Profile, Research, Stock Buzz). The company said on Tuesday it plans to introduce the Android-supported mobile phone in mid-2009.

"Android is set to become a significant application framework for mobile phones," Ericsson's head of mobile platforms, Robert Puskaric, said in a statement.

The Open Handset Alliance said on Tuesday that each of its members commits to developing applications and services for mobile phones and handsets using the Android platform or designing Android-compatible mobile devices.

Taiwan's Asustek Computer Inc, Toshiba Corp (6502.T: Quote, Profile, Research, Stock Buzz) and Garmin Ltd (GRMN.O: Quote, Profile, Research, Stock Buzz) also pledged their support, bringing the total number of companies in the Open Handset Alliance to 47, the Alliance said. These companies join earlier members of the Alliance, such as the world's biggest chip maker Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz) and mobile phone makers Motorola Inc (MOT.N: Quote, Profile, Research, Stock Buzz) and Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research, Stock Buzz) .

Both Google and Apple have wooed developers to create applications for their mobile devices, but Apple keeps a tight grip on the iPhone's hardware and operating software. Google's Android is open to being changed by outside developers.

The addition of new members to the Open Handset Alliance gives Google-developed Android more heft in the battle over who will dominate the mobile phone software market in coming years. Android's biggest competitor is Symbian, which controls half of the market and was acquired by Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz), the world's biggest mobile phone maker, earlier this month.

Nokia contributes Symbian's assets to a not-for-profit organization similar to the Open Handset Alliance, the Symbian Foundation. Members of the Symbian Foundation have royalty-free access to Symbian's software.

So far, 59 companies have said they plan to join the Symbian Foundation, including Japan's third-largest wireless carrier, Softbank (9984.T: Quote, Profile, Research, Stock Buzz) .

Android also competes with Microsoft's Windows Mobile operating system, which has been gaining ground.

With a range of companies jumping into the Alliance, such as portable navigation device maker Garmin Ltd, Android has the potential to be featured on devices other than mobile phones. Each mobile phone maker also can modify the Android open source software, which leaves the opportunity open for many future mobile phones.

"What's fascinating about Android is it's this malleable thing. As these phones come out from other carriers it looks and operates differently," said Greg Sterling, a Web analyst with Sterling Market Intelligence. He added, "It seems more people will jump on the bandwagon." (Reporting by Jennifer Martinez, with additional reporting by Sinead Carew in New York and Tarmo Virki in Helsinki; editing by Gerald E. McCormick and Carol Bishopric)

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