GOOGLE NOT HUNG UP BY PHONE MAKERS

The new Google-powered G1 cell phone from T-Mobile and Taiwanese handset maker HTC is being billed as an Apple iPhone-killer, but as a strategy, Google’s move into the mobile business more closely echoes the approach of another competitor – Microsoft.

Unlike Apple CEO Steve Jobs, who tightly controls the hardware and much of the core software that underpins the iPhone, Google boss Eric Schmidt is looking to rip a page out of Microsoft Chief Executive Steve Ballmer’s play book and have its software on as many phones as possible.

“While many are likely to call this ‘The G-Phone’ . . . it is really just ‘a G-phone,’ ” Canacord Adams analyst Colin Gillis said in a note to investors ahead of yesterday’s announcement.

Sprint, China Mobile and Japan’s NTT DoCoMo – all members of the Google-supporting Open Handset Alliance – all are believed to have Google-powered phones in the works as well. Other hardware makers like Motorola, LG and Samsung have also expressed support for the Google effort.

Like Microsoft, which has its Windows Mobile software in handsets offered by ever major wireless carrier, Google is seeking the same or greater use for its rival technology called Android, which features Google-branded search and Internet services. But in key a difference from Windows Mobile, Android is an open-source initiative. And the goal isn’t software dominance, per se.

“The key for Google is not the sale of the phone itself. . . Long-term, this allows Google to provide and monetize search beyond the desktop,” said Piper Jaffray analyst Gene Munster.

Analysts’ estimates suggest Google could generate between $2 billion and $5 billion in worldwide mobile search revenue by 2012.

But analysts are anticipating a modest start for the effort. Research firm Strategy Analytics is predicting sales of Android phones will total 400,000 units in the US in the fourth quarter of 2008.

Google shares closed down 87 cents yesterday at $429.27.