Open Handset Alliance showing signs of crack

Bloomberg is reporting that Google Inc.’s mobile-phone alliance is showing signs of strain.

After Verizon Wireless scrapped plans to offer Google’s Nexus One handset this week, Motorola Inc. said it opted for a mapping software other than Google’s version. Samsung Electronics Co. has developed an alternative mobile-phone operating system, and HTC Corp. is considering follow suit.

“Everybody is afraid of Google having too much power,” said Carl Howe, an analyst at Yankee Group, a Boston-based research firm. “I don’t think anyone wants to say, ‘In addition to 70 percent of the search traffic in the world, we’re going to give them a whole lot more business.’”

Android’s share of the U.S. smartphone market jumped to 9 percent in February from 5.2 percent at the end of 2009, according to research firm ComScore Inc. in Reston, Virginia. It ranks behind Research In Motion Ltd., Apple Inc.’s iPhone and Microsoft Corp.’s Windows Mobile.

Read whole story on Business Week.

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