We captured the “unboxing” moment and are happy to share it with you.

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In 2008, Google announced they were building a mobile operating system, Android. With Android, a user can enjoy many of the same features that exist on the iPhone. It is backed by the Open Handset Alliance, a consortium of over 50 companies focusing on open standards in the Mobile space. With October marking the one year anniversary of the Android G1, there has been a steady increase in handset deployment and Android usage.

According to the latest AdMob reports:

Since April, Web requests coming from an Android phone have increased almost six fold. 20% of all smartphone traffic comes from an Android device. 2 Android phones, the G1 and the HTC dream, are in the top 10 of devices purchased.

These numbers are about to increase.

Most recently, the Motorola Droid, another Android phone launched and after only two weeks, it comprised 24% of all Android requests.
According to the New York Times, we should see even more phones launched with Android technology before 2010 becomes a reality.

As the dysfunctional marriage between Apple and AT&T twists and tweaks many of its users into a frustrated frenzy, Google and its Open Handset Alliance, if left unchecked, will soon become the dominant player in the Industry. It’s distributed manufacturer strategy automatically creates a distributed network strategy. The capabilities appear similar to many casual users. And the price of an Android phone, aka Google Phone, is less expensive by comparison.

What can Apple do? You’ll have my recommendations next week.

**Update: Chris Brogan’s lastest post is a real world example of my claim that AT&T’s failings become a boon for Android.

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1. Think before acting – In the case study, my friend had already made a decision, long ago actually, that having an app on the iPhone was the right place for his business. There’s so much talk about the iPhone these days but ultimately its still a “walled-in” platform where only a subset of users have access. There’s lots of data out there to suggest that other platforms or architectures should also be considered.

In general, thinking is a good practice but one that small businesses rarely give themselves the space to do. Startups give in to the pressure of acting quickly and decisively. The premise of “Ready, Fire, Aim” (Aim is the thinking part here) is to do something quickly but also inexpensively in order to get some necessary feedback about your application. This iPhone experience for my friend was EXTREMELY expensive. But it might have all been avoided if they looked at other less expensive mobile platforms than just the iPhone.

“Aiming” is actually the most important part of the equation and not the “Firing.” In that scenario, you’re only doing something so you can begin to think . . . powerfully. If that’s the case, “firing” had better be low cost.

2. Be alert for what you are paying for – In general, the least expensive way to transact for something is with money, but keep in mind what it is, exactly, that you are transacting for. When you pay someone to build an application for you, are you just paying for the application? Here’s what you should also pay for:

a. Take care of your concerns – Your primary expertise is probably not Mobile application development or any type of development. These are rough and savage waters and you need someone to lead you and take care of you until the application is complete. You need someone competent and mature enough who knows how to move you and your business to a safe place.

b. Integrity – Dealing with people of Integrity is low cost in any of the ways we transact in business. As I mentioned earlier, this application has become extremely expensive for my friend. First, they still have no application that was contracted for months ago, all due to the cost of that developers integrity. What is the cost? Time? Money? Energy? Resources? All of the above. He spent his time worrying and waiting for the application to be finished. He paid the developer money that he’ll never get back. He spent energy trying to find someone else who will finish the application. And he’s trying to find resources to fund an activity (family, friends, business partners, etc.) that will help him achieve his business goals. Not to mention all the time he’s spent talking to his loved ones about how stressed he is that he can’t get his business to place he envisioned over a year ago.

c. A Partner – You may have contextual needs that you need to transact for as well. For instance, you may wish to project manage the activity yourself or you may not. You may need some help thinking and acting in other parts of your business. A partner is someone you can trust and can turn to when you face a breakdown. It’s better for your business to have really smart people around you no matter where you turn. Knowing those that help you think are powerful people to have around.

3. Understand the business opportunity – What is an average customer worth? How many more customers do you expect to have after your application is finished? How grounded are those expectations? Business owners who look only at what they can afford are typically only interested in earning what they need to make a living. If you have grounded an assessment that within a year you can expect to make 60,000 dollars and it will cost you 20,000 dollars to do it, 20,000 doesn’t seem like much of a cost at all. Many business owners, though, have no clear picture of the business opportunity before them and when they see a cost figure like 10k or 20k they might scoff and try to find anyone who will do it for a much lower price. See items #1 and #2 above.

What have I missed? What’s flawed? I’d love to read your thoughts.

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I can certainly relate.

Before I got my iPhone, I had a Moto Q. When I got the Moto Q, I loved how sexy and thin it was. Also, I loved that it had a calendar and Exchange support for email. I soon grew weary of Windows Mobile, though, and a battery that would last about 3 hours before I had to charge it again. I grew to hate the phone and ended by contract with Sprint early because I couldn’t stand carrying this “thing,” that I hated, with me everywhere I went.

In our conversations, we found a woman who just received a new phone. Even the basic phones today offer more capabilities than simply calling someone.

For this woman, it was obvious that she had only used these devices historically. In other words, her only context came from “calling” people. She appears intimidated by this new “phone” and if her wireless carrier hadn’t sent her this new device to use, she probably never would have purchased it. But because we take our phones with us everywhere, they become incredibly personal devices and as she’s started to use it, she’s looking at the device differently. She’s only beginning to understand how personal and powerful these devices have become when she talks about how the phone has “ringtones” and that she will begin text messaging her sister. She admits she’s not the type to “personalize things” normally, but this device is throwing her into a new situation where now she sees herself and the world a little differently.

See for yourself:

*Update* More proof about how we are changing, How Cellphones are Changing Our Brains

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