Does the HTC G1, running on Google’s Android OS, pose a threat to the iPhone? Last week Emerce Magazine asked me that question. My answer: I don’t think so, and here is why. The iPhone has a superior use interface. Even if the Android OS matches the iPhone’s GUI, a major difference is the customerbase of the iPhone. Building on the iPod success and Apple fanbase, the iPhone appealed to a large audience of consumers. It was the first device in a new generation of innovative smartphones. Combined with typical Apple marketing, it clearly captured first mover advantage in a new feature rich segment charaterized by a touchscreen, application store and full internet browsing. The G1 on the other hand, comes from a factory known for business devices. HTC’s success is built on Windows Mobile smartphones with full QWERTY keyboard, popular with prosumers and small business owners for whom functionality is more important than design. HTC buyers use their phone in most cases for email, POP3 or MS Exchange based. The latter is more common to medium and larger companies. What sets the G1 apart in my view, is the full integration with Google Apps (Gmail, Calendar and Contacts under own domain name). Small businesses are adopting Google Apps slowly but steadily. At Qelp we are sold as well and enjoy using Apps in it’s full breadth. I therefore feel that the G1’s main differentiator will appear to be its integration with Apps. It’s a bit of a brick still and for these reasons I think the G1 will eat market share from other HTC devices running on Windows Mobile. The G1 has the potential to become the Blackberry for small businesses in my view. For the G1 to become a consumer hit, it will require a major player like Samsung to fully embrace it. Motorola is said to be allocating serious resources to integrate Android, but will have to prove it can replicate its RAZR success. Nokia has other plans, trying to keep Google out of its backyard by making Symbian open source and introducing its all-you-can-eat-musicphone the Tube…