Apple Partners: Google-Verizon Tablet Could Pose Threat

Earlier this week, Verizon Wireless CEO Lowell McAdam told The Wall Street Journal that his company exploring opportunities for working with Google. "We're working on tablets together, for example. We're looking at all the things Google has in its archives that we could put on a tablet to make it a great experience," McAdam told The Wall Street Journal.

Google and Verizon have already been working together on Android mobile devices such as the HTC Droid, and some Apple partners believe that the Google-Verizon partnership has the potential to affect other markets.

“Verizon has the network and Google has the power. Together, over time, I am sure they will develop something that will challenge the iPhone market,” said Luigi Giovanetti, co-owner of CPU Sales and Service in Waltham, Mass. “But they are going to have a long and rough road ahead of them.”

"Verizon and Google are great companies. I'm sure whatever they bring to market will cause a stir," said David Doyle, vice president of Vancouver-based Apple partner Simply Computing. "But the strongest advantage Apple has is that they have created a well-integrated ecosystem in the iPhone, iPod, iTunes and customers have been using it now for several years."

Added Doyle: “All new competitors need to teach their customers what exactly they are selling and how it works. That is a more difficult proposition than bringing out a new product that millions of people already know how to use.”

Still, Google and Verizon will face a formidable challenge in creating the level of demand that Apple has managed to generate with the iPad, which sold one million devices in just 28 days and is on a fast track to becoming a $1 billion business for Apple.

The key challenge Apple was able to overcome with the iPad is getting consumer to realize that it's more than just a larger version of the iPhone, said Giovanetti.

“Apple has the software, the 'super chip,' and ordinary people coming up with fantastic ideas for apps that make their life easier,” Giovanetti said. “These new apps get designed, written and published quickly. Apple also has loyalty, brand recognition and quality that no other company can touch.”

Mark Greenblatt, president of Los Angeles-based Apple reseller MacEnthusiast, also said Apple's App Store represents a significant barrier to entry for Google and Verizon. And while still in its early stages, Apple's iBooks could help the company further its reach in the publishing industry and make it harder for Google to follow suit.

“I think publishers see the iPad as an unstoppable juggernaut,” Greenblatt said.

It's too early to tell what Google and Verizon have up their sleeves, especially since Google hasn't even confirmed that a tablet is forthcoming.

“Verizon would love to add an exciting ‘big win’ to its arsenal,” said Marc A. Wolfe, CEO of Proactive, an Apple specialist in Nashville, Tenn. “Google’s strategy of open source is very appealing to developers who don’t want to deal with Apple’s hurdles, delays and pricing model.

“If users continue to be frustrated with AT&T 3G, some may leave for better wireless service elsewhere. For most users, it is more about the 'wow' factor of the product versus the network that it is on.”