Google rings up iPhone fight

Google announced two new smartphones this week, as well as Android 4, the latest version of its mobile operating system — ratcheting up the war between Google’s Android and Apple’s iPhone.

“Competition is at an all-time high in this industry,” said Alex Spektor, handset analyst at technology research firm Strategy Analytics. “So companies have to keep coming with the latest and greatest technology.”

Samsung’s Galaxy Nexus is the first phone running Android 4, nicknamed “Ice Cream Sandwich.” It features a 4.65-inch, high-definition, Super AMOLED screen, dual-core processor, 5-megapixel camera, and a front-facing camera that Android 4 uses to identify your face to unlock the phone.

“Apple’s going in the voice-recognition direction, which Google has done,” Spektor said. “Now Google is pushing into facial-recognition, which Apple doesn’t have yet.”

Spektor said the device is meant to showcase the latest version of Android, and demonstrate to Google’s hardware partners what Ice Cream Sandwich can do. But if Google and Samsung don’t market it heavily, it may not ring up big sales.

Yankee Group analyst Carl Howe isn’t convinced the Galaxy Nexus will stack up against the iPhone, given its size. The price wasn’t announced, but reports have pegged it at $299 with a service contract.

“It’s a monster, a huge device,” Howe said. “You’ll have to have big pockets in a couple of dimensions to manage this thing.”

Motorola Mobility also announced the $300 Droid Razr, which it touts as the thinnest 4G LTE smartphone on the market. The Razr runs on an older version of Android, and Spektor said reviving the once-popular Razr brand could help sales, though it could also conjure images of pre-smartphone technology.

Despite selling 17.1 million iPhones in its fourth quarter, and making a $6.6 billion profit, Apple missed analyst expectations this week. Morningstar analyst Michael Holt said the dip could be attributed to prospective buyers waiting for the iPhone 4S. Apple said it sold 4 million iPhone 4S units in three days, and Holt expects a big quarter from Apple.

“The new iPhone is attractive in that high-end segment,” he said. “But the fact that they kept the older models is also important. Those are compelling devices in emerging markets where you don’t have the subsidy model. That’s where I think they can pick up a lot of share.”

Spektor said the holidays will see a two-man race between Apple and Google, but Microsoft and Research in Motion, which debuted a new mobile operating system called BBX this week, have plans for next year.

“Microsoft is readying to put significant marketing dollars behind Windows Phone 7, and there’s always BlackBerry,” he said.

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