As I discussed HERE last week, the Nexus One has surfaced and in the excitement of this pure Google Android smartphone hitting the market in the near future, some questions need to be asked.
The Nexus One is reportedly an ‘unlocked’ GSM phone that will be able to put on any U.S. GSM carrier’s network; T-Mobile is first in line for the new device but could potentially be put on AT&T’s network as well. It’s not clear how wide-ranging Google’s ambitions are for the phone. Unless Google is willing to sell the phone at a loss, the Nexus One is likely to be much more expensive than Apple’s iPhone and similar devices, which receive subsidies from wireless carriers.
Will Google bet on generating enough ad revenue shown on mobile web sites to and applications downloaded to offset the subsidies? If they don’t subsidize the Nexus One, industry analysts don’t expect it to have much impact on the smartphone market.
The iPhone has been the biggest source of mobile traffic to Google’s mobile services during the past two years, according to Google executives. If Google decides to sell its own handset, it would intensify its budding rivalry with Apple. So, since this is a direct competitor to the iPhone, will Google’s attempt at taking a bite out of Apple’s smartphone market share be akin to biting the hand that feeds?