The value of cobranding – when 1 + 1=3

The Google phone was released with much fanfare a short time ago with its network partner Tmobile.  I happened to be in my local Tmobile store and was talking to the sales staff who informed me that they were sold out of the Google phone and that they anticipated initial demand at approximately 20k units.  He informed me they had back orders immediately that numbered over 100k.

This is a perfect example where cobranding works.  Tmobile is looked upon as the number 3 or 4 in a three horse race with Verizon, ATT and Sprint/Nextel. So this benefits them by putting a halo on their brand and drive additional traffic to their stores.  Google’s who’s Android phone operating system is new to the market can leverage Tmobiles retail and distribution network. The phone who is manufactured by HTC also gets some branding recognition.

So its a win-win-win for Google, Tmobile and HTC.

I also am looking into my crystal ball and I predict within 5 years Google or someone else releases a free cell phone with free or discounted minutes based on the advertising model where user either hear and or see ads before and after making calls. Based on what the Googlers say to the press the next great frontier for them is not the web via computer but the web via cell phones and smart phones. But that is a story for another post at another time.

Also I would like to give a shout out to the Tmobile store in Montgomeryville, PA USA, the employees at this location are awesome especially Brendan and Sandy. This store is always crowded despite its terrible location.  They even have a guy that speaks Spanish.

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