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When the gPhone rolls out, every vendor from the mobile apps side to the phone casing manufacturers will want a piece of the action in working with Google. This is going to be a real money spinner and the handset makers like Nokia, Motorola, Samsung and others may like to offer Google some consultancy on marketing this phone. Google may be a leader in selling services but dealing in hardware would be difficult as there are many geographical and border to break down. By looking at the problems that Apple had to deal with locked phones, you know that mobile users are getting to be very fussy about who they align themselves to. 

The mobile operators in the US market should approach Google early to get a piece of the gPhone services pie in order to lock in revenues. In the end, Yahoo and Microsoft may also have to think of different ways to counter the gPhone revolution by aligning themselves with mobile handset makers. Just look at what Microsoft did with their free Live service on new Nokia Nseries phones that shows users need plenty of service to generate revenue for mobile operators.

First of all, we have to say that in my opinion the "gPhone" is nothing more than a software package that can be used on a variety of mobile handsets. Not really a specific handset, but open to any mobile device.

The strategy of Google has always been to put a little piece of code in any website to get value from them through AdSense. I do believe that this strategy will be undertaken for gphone as well. I see gPhone as a set of applications that can be pre-installed on a variety of phones in order, for Google, to get value from them.

For Motorola, Nokia etc. it is an opportunity. Think of hundred of millions people using Google Applications on their mobile phones, making searches, checking emails and so on. Mozilla just disclosed a huge revenue coming from Google Searches, think of the same approach applied to mobile phones. Aside from Apple that already has agreements with Google for the iPhone,  Nokia and other big players can catch this opportunity in order to get additional revenue streams coming directly from the final users. 

Microsoft already made their move in the mobile space and the competion will go on. Yahoo already has a great software for mobile phones and should move faster in order to make agreements with mobile device producers in order to put flags and make mobile users comfortable while using their software.

Speaking about mobile operators, it's a bargain as well. More internet addiction by mobile users equals more bandwidth usage. And I think that some "network neutrality issues" can arise, since the mobile operators would surely participate to this game (in terms of revenues) and will rise their concerns as soon as they realize that those applications are using a big percentage of the available bandwidth for their users.

Millions of them have bought cellphones requiring complicated navigation through multiple menus (and sub-menus)! Cellphone applications remain untouched by cellphone owners simply because the applications are hard to get to, and hard to use. Today's cellphones are still a "proof of concept" device — showing the industry that it's possible to offer applications on a handheld phone. But unfortunately, they're not doing it in a way that's compelling. If Google can develop an interface with the simple intuitiveness of web page, consumers win.

Cellphone manufacturers could benefit too. Google gPhone interface will be Open Source, a new development in the cellphone world. This would invite thousands of developers to build cutting edge applications for cellphones. Suddenly users could customize their cellphone's capabilities for their unique interests and needs; what's on the cellphone won't be limited to a handful of choices based on whatever business partnerships were struck by the carriers and the manufacturer! Ultimately the cellphone manufacturers will sell just as many handsets, possibly even more, with Google's gPhone interface and application suite. It might require some adjustments to the business model of carriers and manufactures — they'd have to come to cede some level of control over the "real estate" on cellphone screens. But the current system of phone interfaces hasn't been a success — it hasn't bought them any real loyalty from customers, mostly just reaching the "good enough" threshhold.

Look at it this way. Today there is no killer application for cellphones. If the gPhone's developers can come up with just one, the industry will pivot. Consumers would demand Google's interface — or at least, the option to install "gPhone-compatible" applications. Apple would probably resist the pressure to put the gPhone interface on the iPhone — which says something about Apple. But they're the one manufacturer with a strongly loyal user base, so they could probably withstand this pressure. Interestingly, Apple's iPhone generated excitement for exactly the same reason — there was finally a great interface for the cellphone and other handheld applications, and consumers were ecstatic. Because of this, Apple stands to lose the most from the gPhone, since there could be a cool rival phone interface on the market — and one with a buzz.

But the implications for Microsoft could be even bigger. Microsoft has dominated the software world through by dominating the operating system market. But Microsoft doesn't dominate the mobile phone universe. What if it was Google that developed the dominant operating system for the mobile phones universe?

As technology gets more and more powerful, it might not be desk-based PCs that become the leading "form" for accessing the online world. Maybe it will become handheld devices, with PCs becoming almost a relic from the first decades of the information revolution. If a new mobile-dominant world comes to pass, it could be Google's open source operating system that supplants Microsoft's former dominance.

For almost ten years, developers have whispered of the ultimate significance of an open source browser like Netscape and Firefox. Many applications run in your browser, and aren't limited to a specific operating system. In short: the browser becomes a surrogate operating system. Google has fully embraced this model, with cutting-edge browser-based applications like Google Maps. Their work with developers of Firefox, the popular open source browser, is another step down a very significant road. And Google is savvy enough to know that this is a vision that gets developers excited.

Yahoo has always lagged in innovating, but there's no reason why they couldn't offer access to their own suite of applications on a gPhone interface. (Yahoo mail, Yahoo games, etc.) If the gPhone increases cellphone adoption, Yahoo could see some gains in mobile usage for their applications. But if online access moves to more mobile devices, Yahoo could face trouble making money from search engine-based advertising. Google appears to be diversifying their revenue stream and product line, and Yahoo needs to be doing the same. The gPhone isn't a direct threat to Yahoo, but Yahoo's own inertia is.

But mobile operators stand to benefit a great deal from the gPhone. Google could create a much handier interface that leads to new and compelling applications that increase cellphone usefulness, and thus cellphone adoption. The carriers would ultimately see more usage of their networks — and more revenue. Everyone wins when cellphones become better, from the companies who sell handsets to the networks who sell the airtime for using them.

And especially, consumers.

Financially the impact of software or a gphone on device client - will only only depend on the overall cost of the data applications and tariffs from mobile operators.

Every on device portal to date has been less than successful - even Yahoo!'s Go! hasn't succeed despite huge marketing spend and hype.

Whatever Google does or whatever applications are involved - uptake depends on 

1. Cost of service - data transfer charges

2. Cost of application

3. If the application is free then subsciption charges from operators might apply.

At the moment clients or applications are interesting - but uptake is hindered by cost - so just as the iPhone had to slash its price - the brand name Google isn't enough to ensure huge uptake.

Once the hype is over - the reality is that its still about two years early for huge uptake and use of applications or clients on mobile devices - apart from the tech/ geek community.

Google is being really smart here, and going after a very long tail of cellphone manufacturers. Believe it or not, the component cost of developing a phone is nothing compared to the cost of maintaining the Operating System.

Google is NOT developing a phone in my opinion - it is developing a Linux based operating system that will be open source and available to phone manufacturers - hitting Windows Mobile where it hurts the most. Companies like HTC which rely on Windows Mobile will likely switch to a free operating system, and Google gets the benefits of having it's applications being compatible with any phone using the underlying Linux OS.

The impact on the larger manufacturers like Nokia, Samsung, Motorola will be negligible in the short term, but in the long term it will lead to price pressures from manufacturers that utilize their OEM parts in new phone configurations and deploy these phones for far less than Nokia can.

Impact on Apple:

Minimal in the short term, as the iPhone has superior functionality than what the Google OS will offer - interoperability between Unix & Linux means that potentially there is collaboration here.

Impact on Mobile Operators:

Will drive down the cost of mobile phones - will lead to more competitive offerings (free phones, etc). It will also increase the use of data, as the phones will most likely have web applications embedded or accessible by them.

Impact on large manufacturers:

As Ubuntu has proven, it will be tough for closed proprietary systems to beat the pace that Open Source can deliver on the mobile platform - although this may be years ahead. I forsee the large manufacturers forming an alliance against Google - which becomes a threat.

Impact on Yahoo/Microsoft:

Google will follow users onto the mobile, much faster than Yahoo/MS will. Microsoft's Windows Mobile will take strain within 2 years. Yahoo has other issues to worry about.

This interjection, toward the end of the submission period, isn't really fair considering Google finally announced their intentions with the Android platform. However, it seems there can now be some more specifics to consider in regards to answering the questions posed in the issue "update".

The bottom line in my opinion is that this is a long-term win for the End-user (mobile customer). By taking a different tactic than Apple's integrated one product iPhone solution, and attacking the issue of mobile user experience from the (open) OS and services angle, Google is essentially looking to offer up 'iPhones for the rest of us'. In other words, choice in hardware, and an open platform for developers.

Let's face it, most mobile OS front ends (non-smart phone in particular) are particularly clunky. Google seems focused on delivering a superior user experience, their own apps/services, and spinning it all around the promise of an "Open Handset Alliance" platform. This is an obvious jab at Apple, who have been criticized for walling off the iPhone from developers of all but web-based apps.

So, for the consumer - especially those already leveraging Google services (gmail, calendar, iGoogle, etc.) on their PC - this will improve their work flow from PC to mobile device.

Who else wins? Well anyone who jumps into the "Open Handset Alliance". This will fall into the groups of: carriers who can sell Android-enable phones as a means of competing with the hype-machine that has been the iPhone; and app developers who can gain exposure and possible revenue by offering services. Oh, and let's not forget why Google is doing this - adwords and adsense done their way, with the risk spread across a variety of 3rd party mobile hardware devices.

Who will suffer? Any company with a weak mobile OS -- Any company that got it's user-experience arse handed to them when the iPhone made their offering look like a betamax player. These companies will suffer a one-two punch effect when and if Google's Android platform lives up to it's hype (Microsoft Windows Mobile, RIM, Palm, etc). End users will no longer tolerate inferior, difficult, crappy mobile operating systems. Those who don't innovate, or join Google will slowly whither. Another casualty could be smaller, proprietary, ad networks - depending on how Google's advertising interests restrict their ability to get in on the fun.

The competition will also force Apple to address the shortcomings of the iPhone, however, with their strong lead I don't see an immediate negative impact. Finally having a worthy competitor, again will be to the benefit of consumers - hopefully resulting in better cheaper iPhone products, and if/when Apple really opens up to developers will be of real significance.

On a final note, I think it will eventually hit everyone that Microsoft may have blundered here in failing to focus the Windows Mobile platform toward addressing the iPhone & Google threat. It seems like Google was able to engage Microsoft into a game of chasing Google around, trying to copy it's various online efforts - while taking it's eye off the mobile OS ball. Whether this was a lucky side-effect or an actuall bit of strategy on the part of Google - who knows? The bar is set high now, so the next rev of Windows Mobile will have to hit it out of the park.

Google's move will actually benefit cell phone hardware manufacturers.  By standardizing the platform for the mobile phone, manufacturers will be forced to compete even more in two areas, high end performance and handset style.  This type of competition will be more high margin, and will force several players out of the industry, while other reap higher profits.  It's interesting to note that Nokia has already beat Google to the open software move by adopting the Symbian operating system on certain phone models.

I believe Eric Schmidt sites on Apple's board, which leads me to believe that Apple will embrace this move by Google.  However, it is also possible that Apple band with some other companies to create a rival open platform.  

Mobile operators in the U.S. market will see a lower cost structure from having to support fewer types of systems.  This will translate into higher profits for them in the short term.  The mass adoption of a common platform will make the ROI on mobile software much more attractive, and will spur innovation in that area.  Mobile operators will begin to offer mobile software, possibly even under a software as services model, and will reap higher profits that come from charging for I.P. instead of access to lines.  They will realize that wifi and other technologies are eroding their base for cellular charges, and will thus embrace the Google initiative and the move to software.

Yahoo and Microsoft will strike deals to get their own ad networks on more mobile phones.  Microsoft will likely do this by purchasing other companies, or stakes in other companies.  Yahoo will probably try to do this by offering content in exchange for ad placement, since the company has more content but less financial strength than some of the competition.

Oddly enough, while Google will benefit from the move, they may not benefit financially as much as other companies.  Mobile search is likely to have a much more local focus, and thus opens up the opportunity for a winner from the yellow pages industry, or possibly a tech startup.  While Google may get to sell ads on mobile search, the company may not win as the mobile search of choice for users.  This will still improve Google's revenue, but will expose them to more risk and force them to spend more money on marketing, which will descrease profit margins.  

In general, an open standard is going to create an exploding market of opportunities, which will probably increase the revenue of most of the companies in that space.  The winners will be the companies that cut some good deals early (possibly even money losing deals) to get access to users that will send good revenue streams in the future.

What to expect now that the GPhone isn’t coming

The excitement surrounding what most assumed to be Google’s announcement of its GPhone turned out to a well hyped rumor. However, Google did manage to announce the Open Handset Alliance (OHA) and Android, which, despite the gravity of speculation about the GPhone, are more significant than a single phone. Obviously, the announcement of a new mobile device from another tech heavyweight (following the release of the iPhone) would have generated more immediate buzz across a lower common denominator, but the effect that the OHA and Android is set to have on marketplace should not be discounted.

Marketplace realities
Android™ is expected to deliver a complete set of software for mobile devices including an operating system, middleware and key mobile applications. November 12^th has been set as the preview date for the Android Software Development Kit (SDK) which allows developers to build rich mobile applications. Android is being billed as a truly open platform distributed as open source. Google has been an active player in the open source arena for some time now and has taken good notes on how open source disruption creates both new opportunities for growth while also re-ordering competitive dynamics. Google is looking to leverage open source towards establishing Android as the de-facto mobile development platform in a similar way that Windows is still the dominant platform for desktop development. A strategy which has placed Google in direct competition and collaboration with a number of established players. The way in which this situation plays out will affect the overall industry in a variety of ways.

In August of 2005, Google quietly acquired Android, Inc. which was a low-key 22-month-old startup, based in Palo Alto, Calif. The company kept its line at a maker of software for mobile phones without much detail. The acquisition was lost amongst the announcements of Google Short Message Service (SMS) and the acquisition of Dodgeball in April and May of that same year. Yet in its current form, Android, and the OHA fit well into Google’s burgeoning assault on the mobile arena. Mostly Android opens the door for developers to leverage the capabilities of mobile devices through an open source offering that lowers the cost barriers for developing mobile applications. As a result, users of mobile devices will be offered more choice and less dependence on their devices as it relates to application functionality and range. Android will also address issues faced by the mobile device industry related to ease of use and user interfaces.

During the 2007 May-June timeframe Google announced that mobile traffic to its mobile services spiked 35%. The company also stated that usage of Google Maps increased 40-50% following the launch of the iPhone in late June. These statistics portray the increasing importance of the mobile user who views mobile devices as a viable gateway to a growing array of services. The growth of usage rates spurred by the iPhone is exemplary of the latent appreciation for the efficacy of Google’s mobile services. Google has long since recognized that its bottom line will only benefit from the added availability of devices designed for content usage across the mobile Internet. Hence the company’s headlining involvement with Android and the OHA. Android is set to provide an iPhone-type platform for developing the type of innovative applications which effectively interact with the Google platform. In this way, Google can profit from the fact that customers will demand to use the same brands on mobile devices as they do on PCs.

An important fact to keep in mind is that Google recently announced that it has extended AdSense to the mobile third screen so that proprietors of mobile web destinations can accept advertising on mobile web pages. This is an extension of the company’s AdWords mobile effort introduced last year. Google is looking to establish itself as a leader in the mobile advertising space but knows that it needs mobile content to take off, which is where Android enters the equation. When developers are able to write applications which combine information from the web with local data such as user-oriented contacts, calendar, and/or geographic location users will be afforded a more relevant user experience. As a result, there will be a spike in the demand for mobile content which will also open opportunities for larger players that have acquired start-ups in the mobile advertising space such as Nokia (Enpocket) and AOL (Third Screen).

Impact on Nokia
As of the end of 2006, Nokia is still one of the worlds top mobile phone brands. Nokia sported a 35.1% market share in 3Q06. Nokia’s mobile phone unit is the largest contributor its bottom line from a revenue and market share perspective. Nokia remains adamant about using the Symbian operating system for its enterprise focused products. Currently the Eseries is considered an enterprise-grade smartphone platform that ranks as a viable competitor to the Windows Mobile platform. However, the Eseries is behind Microsoft when it comes to software development tools, this might be further exacerbated by the emergence of Android, perhaps not in the near term but over the long haul.

In 2006 net sales for Nokia increased 20% while its operating margin was 13.3%. In order to continue growth moving forward Nokia will be charged with differentiating across product lines as multimedia capabilities become standard in high-end devices. The company is banking that the multimedia experience will play a large part and Android, with its role as an application development facilitator, affects this picture. It is possible that Android will help competitors like Samsung and Sony Ericsson close the gap between standard mobile phones and Nokia products that the company needs to maintain in order to succeed.

Impact on Motorola
In 2007, Motorola has found itself in the midst of revamping its mobile device portfolio. Thus far, the company software platforms haven’t made it easy for it to effectively respond to changes in the competitive landscape. Without a standardized platform Motorola has been unable to introduce enhanced usability and boost sales over an intermediate time period. Android just might emerge as the standard platform. As an open source offering, backed by a major industry player (Google) Android has the makings of a breakthrough platform. However, through the end of 2008 Motorola will remain tied to Microsoft Windows Mobile for its enterprise advanced handset experience. Android is capable of developing into a Linux alternative for Motorola.

More importantly over the past three-and-a-half years Motorola has invested in shifting towards a Linux/Java based software platform. The Ming, ROKR e2 and RIZR z6 are all products of this strategic reposition. Earlier this year the LiMo foundation – established by Motorola, Vodafone, NTT DoCoMo, NEC, Panasonic and Samsung has yet to build notable forward moving momentum embodied by a lively partner ecosystem. Android might be a part of the answer to ensuring the longevity of platforms and partnerships in the area of open standards Linux/Java software on high/mid-tier devices. A strong growth curve for Android will align well with the financial prospects of Motorola as it looks to correct its underperforming mobile device business, one which contributed to the restatement of revenue guidance downward from $10.5 billion to $9.4 billion in 1Q07 and a $7.5 billion stock buy-back plus 3,500 layoffs.

Impact on Apple
Apple Computer’s consideration of bidding in the 700 MHz auction to be held in January 2008 reflects the increasing importance of the U.S. mobile ecosystem. Apple finds itself involved with a surprisingly complex and fractured mobile ecosystem that has struggled to connect user with desired content. In this equation, mobile operators wield a large amount of control over the handsets as well as the services their customers use while also demanding content revenue sharing near 50% for little more than billing and access in return. For example, the iPhone was dependent on permission from AT&T to operate over its network and Apple was essentially indebted to AT&T just to reach mobile users with the iPhone. Android will not directly change any of this, but it will begin to set the foundation for iPhone like functionality from other mobile devices. Obviously the Apple/iPhone brand isn’t so easily duplicated but the lead and appeal that iPhone has within the consumer mobile market will be affected.

If Android can surface as a bona-fide mobile platform, Apple will be forced to respond by ensuring that it follows through with the iPhone SDK or by even considering an open source approach to some of the associated toolset. Android takes some steam away from the iPhone as the mobile development platform of choice as well as stealing the luster of developing for the iPhone now that another tech heavyweight has rolled out its own platform. Apple is undoubtedly expecting developers to flock to the iPhone and begin to churn out the type of innovative applications that will further fan the flames of its device sales. However, with open source alternatives like Android available instead of just another mobile device (Gphone) these plans might be temporarily dashed. This might affect Apple’s decision to bid in the aforementioned 700 MHz auction and further consider joining a partnership consortium as a course to new markets. After all, a consortium of Apple + Google + another network infrastructure player might turn out to be a juggernaut capable of taking on the mobile operator giants.

Impact on Yahoo
One of the many questions swirling Wall Street at the moment is whether Yahoo can catch Google? Despite capturing the first-movers-advantage within the online search realm, Yahoo, continues to fall further behind Google in revenue growth. Unfortunately, this puts pressure on its stock price and market cap which, in turn, limits its acquisition options while exposing it to take over attempts. As a counter, Yahoo must leverage its brand, reputation and reach as a leading Internet media company to capture the budding online video arena. Therein, it is important to remember the role that the mobile industry will play as it relates to the uptake of online video. Its stock price has suffered since investors took notice that 1Q07 results signaled slowing revenue growth and 2Q07 did nothing to alleviate those fears.

Yahoo clearly has the most to lose if Android and OHA generate the type of momentum Google wants. As multimedia capabilities substantially increase on standard mobile devices, Android is in a position to become a widely accepted entry point for mobile developers. This affects Yahoo’s ability to use its position as a portal with the wide distribution reach as a figurative foot-in-the-door for to the mobile crowd. Mobile users offer Yahoo the chance to capture desperately needed revenue associated with advertising emerging content monetization models. However, if Google innovates around its YouTube acquisition and is able to provide the necessary impetus for developers to leverage online video on mobile devices through Android, Yahoo will be shut out of what could be its ticket to effectively competing with Google. Thus far, Yahoo’s involvement in the mobile space has been mixed, at best. However, there have been bright spots such as Yahoo! Go 2.0, a service which functionally outshines any Google offering to date.

Still, Android has the potential to emerge as an implicit showcase for mobile applications built around the Google platform. In the meantime, Yahoo has yet to utter a peep as it relates to a competitive response. If Yahoo is unable to counter, it will fall further behind Google in the race to capture the nascent mobile space. Yahoo must answer by taking advantage of its more advanced mobile advertising technology while also ensuring that its services and offerings do not go unnoticed by the Android developer community.

Impact on Microsoft
On the competitive front Google and Microsoft are beginning to butt heads with increasing regularity. These confrontations will shape the future of how IT is provide and consumed by vendors and users, respectively. It is fact that Google derives 99% of its revenue from advertising. Microsoft has indicated it is willing to spend nearly $2 billion to ascertain a piece of this pie. On the other hand, Google is looking to the mobile arena as a relatively open landscape where it can put roots down and establish platforms which are independent of Microsoft’s grasp. Android is but one such effort to establish an open source platform for mobile applications as a swipe at Microsoft’s Windows Mobile platform. Obviously Windows Mobile has yet to generate a monopoly similar to Windows on the PC and Google is dead set on leveraging open source, in the same way the Linux operating system is doing on the desktop, only before this is the case. A diversified set of choices for mobile application developers will align well with the movement of serviced based software delivery, i.e. Software as a Service (SaaS) while serving to limit Microsoft’s revenue generating prospects in the mobile realm.

Android will force Microsoft to consider changes in its product strategies for the mobile space including delivery and monetization models. Currently Microsoft is a pure software company that is tied closely to the near-commodity PC hardware market. Recent disruptions in the form of SaaS and open source have placed mounting pressure on business dependent on software licensing. Therefore Microsoft is looking to translate its Internet and consumer market presence into newer sources of revenue. Android as a mobile application development platform stands at the cross roads of these two points as a player in the third screen marketplace. Microsoft would love to assure mobile users that the Microsoft brand will transition across to their mobile experience but it faces an uphill battle. Any momentum associated with Android and OHA only adds to the pressure. For example, Android is capable of becoming the window through which mainstream users become comfortable with Google Apps, as developers begin to leverage Google’s online office productivity suite. In this way Microsoft faces a situation similar to that of Yahoo where Google’s bold moves are beginning to encroach upon its room to maneuver within the mobile space.

We now know that the rumors were true, and Google, with partners , is spearheading the Open Handset Alliance, a group of phone related businesses and technology providers that are committing to develop phones and software with an “open architecture”.   Given Andy Rubin's key involvement in this project it seems likely to me that Google is going to produce hardware as well, though it would seem it is the software and not hardware that makes this development so significant.

Open Handset Alliance and related products will shake up the cell phone world in a variety of ways, especially if this approach gains quick traction in the developer community as is expected, especially considering the concern expressed by many developers and users about Apple iPhone's less open and "locked phone" approaches.    

On November 12th Google will make available a free package, the ”Android SDK”, the software kit for phone application developers.   If the Google mapping applications used by the iPhone and the Treo are an indication of the kinds of new phone functionality we can expect as developers old and new flock to the open source phone community the handset mobile landscape is about to change dramatically, although perhaps not as quickly as many seem to think.   It will take some time for developers to ramp up to the new open phone world and it will probably take at least 2-4 years for average users to "get very comfortable with" and "see as necessary" the data services that are not generally considered essential such as web browsing on the phone, mapping, and video playback.

How will this impact other players in the space and the overall industry? 

I'd suggest that the overall impact will be positive. There will be more subscribers and more phones with less hardware subsidy needed as feature rich devices become the standard and innovation and competition cut prices. 

Most of the Open Handset Alliance partners are likely to see almost immediate benefits as they produce hardware and software and benefit from the Google marketing umbrella.   I'd predict a price point for the first iPhone like devices as low as $100 which will *hugely undercut* Apple's current iPhone pricing.  Almost certainly phones similar to the Apple iPhone will be available within months for under $150 and perhaps be fully subsidized with voice and data subscription plans.    I see the big losers in this equation as Treo, Palm, and Apple.  I'm a Treo owner and in my opinion the Treo's browsing, video playback, and camera capabilities are underwhelming.     New iPhone-like handsets are likely to offer superior features across the board. 

What will it mean for Nokia, Motorola, Samsung and others -- especially from a financial standpoint?

Generally positive but the more competitive landscape for hardware producers may see some casualties as the best new phones could eclipse inferior models.    I'd predict that the best iPhone like device that has iPhone features but eliminates the iPhone defects (ie problematic touch keyboard) could spell a financial windfall for the maker.   Most like to make the best iPhone clone?   Samsung due to quick implementations and innovative design.  Most likely to fail to take advantage of Open Handset Alliance status:  Motorola due to lackluster product history.

How will it impact Apple?

Negatively and significantly.   Expect Apple iPhone adoption to plummet immediately as users wait for what will certainly be cheaper, similar devices using the Google open protocols.    Unlike the MP3 market where Apple's early innovations, continued leadership, and marketing-driven "coolness" factors all played to their advantage they will face big challenges in gaining new subscribers, though I'd suggest the current user base for iPhones will show a great deal of loyalty to Apple and thus no "meltdown" will happen.  In summary iPhone market will show a Mac-like descent rather than an iPOD-like ascent.   Look for Apple stock, now at historical highs, to fall at least 10% and probably more like 30%.   Historically Apple's stock has shown dramatic drops and rises since the Apple IPO decades ago.   If this pattern continues Apple is in for a big drop as iPhone sales dry up and Open Handset systems begin to replace iPOD devices.

What will it mean for the mobile operators in the US market?

Beneficial for partners who aggressively work with Google and Open Handset Alliance.   A factor that I expect to come into play eventually, but not immediately, will be subsidizing plans using mobile advertising.  If Google can establish a powerful mobile advertising distribution mechanism and place that on top of the data and voice services Google could reduce the cost of cellular service significantly  (or keep the costs fairly high and rake in tons of mobile advertising revenues).   In both cases Open Handset players and Google win big as their phones become widely adopted.   Google shines when developing great technology and combining it with advertising and I predict this will be no exception.     However - the effect on Google's stock price is much harder to predict, as it appears investors have already incorporated significant profits into the Google stock equation for some time.   I believe Google is a great company but overvalued vis a vis other players in the space like Yahoo who will eventually rise more with the online advertising tide because their stocks currently reflect failed attempts to match Google's brilliant online advertising abilities.   As advertising distribution and pricing become more standardized and commodified, Yahoo, Microsoft, IAC and even many smaller players stand to gain disproportionately to Google in terms of revenues, profits, and stock price.  

Impact on Yahoo and Microsoft:

Yahoo: (disclaimer - I own 600 shares YHOO, partly for the reasons stated here).  Company prospects are very favorable.  Yahoo will benefit handsomely from their strong "second place" in search, prominent efforts in "Web 2.0" development, and their huge network reach as soon as they are able to copy or better imitate Google's monetization routines.    The mobile market influence here will be positive due to increased views at Yahoo properties and partnership deals, but initially Yahoo appears to have ceded the online OS to Google who will initially reap more mobile advertising benefits.  That said, the mobile ad market may prove as fickel as the video advertising market and will take years to mature.    The big profits from mobile advertising are not yet in the pipeline.

Microsoft: Their online prospects will brighten with the ongoing online ad explosion, but the Facebook partnership is now threatened by Google's Open Social, and their Office Suite, Browser, and even Vista is under huge strain from online applications, Linux, diminishing Enterprise software focus, etc.   Hold this stock.   Potential market volatility makes buying Microsoft problematic.