Eating My Words Never Tasted so Good!

And of course, I would be talking about the Nexus One, the most glorious Android phone to date.  About four months ago, I wrote an article called, “Don’t Hold Your Breath…”, talking about the fact that I really did not see Google trying to get into the phone market through manufacturing their own handset.  Boy was I wrong, and I am so glad that I was.

With the release of the Nexus One, I find myself happily shocked that it is actually here and ready to go.  My theory of Google just trying to get more people tied into their search engine, and as a result generate more revenue,  looks like a short assessment on Google’s ambitions.   The Nexus One is a direct assault on the iPhone and Apple, it is an interesting and exciting move, and opens up much speculation about how Google wants to change the playing field of the mobile industry.

The question must be asked:  What does Google gain by creating and selling the new Superphone?  Here are my thoughts:

  1. Revenue.  This has to be #1.  Money.  Google is a business, as of last October, they had an estimated market value of 153 billion.  People are going to flock to an unlocked phone that can be used on any carrier without rooting.  This phone is going to sell like hotcakes.
  2. Launching a flagship handset will bring legitimacy to the platform.   Android has been growing and has become a major player in the smartphone market. However, the array of handsets and their ability to run the platform has been all over the map.  By launching a handset that has been spec’ed by Google itself, they can control the user experience, creating a tighter user environment and provide their customers a phone that will run everything without problems.
  3. Encourage developers that Google means business with Android, thereby helping to mature the market. One of the major complaints right now is that the Android market is a bit of a mess, and is a revenue sink for developers.  People just are not making money yet selling in the Market.  By proving to devs that Google is serious about providing hardware that can do some awesome things, they are reassuring potential software creators to jump into the Android pond.
  4. They reward T-Mobile for their loyalty. I find it really classy that Google did not abandon T-Mobile with the Nexus One.  T-Mobile took a big chance with the G1, and to open up some subsidy rights to them to sell the phone is top notch.  It also in turn rewards the G1 adopters, and gives them opportunity to get their hands on the phone for a cheaper price, if they meet the requirements.
  5. Despite the high unsubsidized price, releasing a phone that can be used on different carriers is a step forward for unlocked handsets to be the norm. This one I know is a bit of a reach, since you can buy unlocked handsets for a premium, but with Google’s clout behind it, I wonder if we will start to see this more and more.  I believe that this certainly threatens the trend of exclusivity of different phone models.

I have little over a year left before I can jump on the Nexus One wagon, and I am counting the days.  Those of you who can grab it now, congrats; I am looking forward to seeing where the Nexus One goes.  In the meantime, I am getting ready to eat my word sandwich.

  • bandi87

    i don't really think the hole "unlocked phone" thing is such a great asset…since you can only buy the device in like 4 countries. when the iPhone 3G hit the market I think 4 was the number of countries who didn't sell it. I wish I could buy it but hey…I just have to wait.

  • Jonnei

    Your guesses and logic are terrible. Learn more about the cell phone market and Google before writing articles. Thanks. Bye.

  • milrtime83

    "People are going to flock to an unlocked phone that can be used on any carrier without rooting. "

    They haven't flocked to the Nexus One yet and I doubt they will in the US anyway. It doesn't have ATT's 3G band so it is essentially still limited to T-mobile, the smallest of the four carriers with the smallest 3G footprint.

    • With as much negativity as AT&T has gotten for overselling the iPhone and not putting up enough towers – that's why 3G on the iPhone sucks ass. Too many iPhone users reaching for 3G connectivity and you get the bottleneck effect.
      There was an article I read (sorry I didn't bookmark it), but it stated that AT&T didn't spend money each year on expanding their network towers. But continued to oversell their iPhones.

      T-Mobile on the other-hand, has already expanded their 3G coverage.
      And yes, the N1 is only for TMO 3G, not ATT&T. Us early adopters of Android with our G1s deserve this break.

      Love it or hate it, AT&T sucks.

      • hazydave

        One of the problems with expansion has been bandwidth. Unlike the CDMA/EvDO people, HSPA (GSM 3G) needed new bandwidth… 10MHz for a full HSPA, 20MHz for HSPA+. This means all new cells, new licenses, etc.

        AT&T had enough combined 850MHz and 1900MHz bandwidth to deploy 3G in many areas. But even that's a somewhat recent thing… they only got this in the Cingular/AT&T Mobility merger. And AT&T had been DAMPS, not GSM, so they spent some years replacing the old gear with new, for no real net gain in coverage. By area, they have about 20% coverage, but by cell it's higher, and by population, higher still. They are still upgrading cells… they claim they'll have 30+ major cities wired with HSPA+ by this summer. And they're also in the process of deploying 4G (LTE), but that's not going hot until 2011.

        T-Mobile didn't have any 850MHz spectrum, and had to wait for the 1700/2100MHz auction. They did just announce their upgrade to 3G is complete. You have to read the fine print, though: this is HSPA, not HSPA+. And it's not every cell, it's just the extent of their planned 3G upgrade, before they start to deal with 4G.

        The CDMA companies didn't have these issues… Sprint and Verizon were virtually all 3G some years ago. EvDO Rev A is slightly slower than HSPA, and a bit less than half the maximum customer speeds of HSPA+… but it's everywhere. Sprint already has 4G in over 30 cities (they're the lone WiMax user among the telcos, but they're aligned with Comcast, Google, Intel, and the former Clearwire in the new Clear group). Verizon goes hot with LTE in 30+ cities this summer.

  • Jonnei,
    you may be right, but where is *your* argument? Why is his logic terrible. Please, explain.

  • Guest

    By definition, G1 owners don't meet the subsidy requirements. We got the phone no more than what, 14-15 months ago? In the end though, I was happy to pay full price for my N1 as I get a better monthly plan and save money each month from what TMo is offering on contract with this. In the long run I'm going to save money and I'm not on contract.

  • SugarMouth

    Are you really going to get the Nexus One in a year from now? Chances are there will be something better running Android and it might be from Google. I can barely hold onto a phone for 3 months before something better comes out.

  • SparkLingCYaNide

    The Nexus one is Fantastic and I am Enjoying my most powerful Phone in the USA immensely!

  • As long as CDMA is in place, unlocked handsets is moot in the United States. Unlocked handsets only benefit T-Mobile and AT&T customers in the United States, and for that to be a real benefit the handset needs to support both networks voice and 3G bands. So far Google has done nothing different than what HTC and Nokia have tried to do in the past.

  • I don't find the unlocked phone that expensive if you compare it to other unlocked phones e.g. an HTC HD2 sells for $815 and

  • Kervin

    For me who is not living in europe or north america, having an unlock phone changes everythin. I have the iPhone and jailbreaking is tiring at times. Just hoping to have the nexus one sooner than later.

  • Chefgon

    Google still hasn't gotten into the hardware manufacturing business. I don't understand how so many people have made that mistake. Google has gotten into the phone RESALE business. This is still a phone that has been designed and manufactured by HTC, Google is just selling it through their online store.

  • Jesse

    This G1 adopter doesn't feel "rewarded" at all. I'm not eligible for an upgrade for almost another year — nor is any other G1 owner, since the phone isn't that old — and even if I were, I'd still have to pay more than a new customer.

    When I was a Verizon customer, after two years I paid *less* than new customers for a phone upgrade, not more!

    • I agree with this. Being able to "upgrade" for only $400 doesn't seem like it's really rewarding me for anything, and I'm 14 months into my contract. In fact, having never changed my phone company since 1996 except through acquisition (Aerial to Voicestream to T-Mobile), I get nothing except not having a contract in place — until I got my G1. and an extra 50 anytime minutes per month, which I've used exactly ONCE in over five years.

  • I agree with most but one thing: how is this phone any different than G1 phone? Nexus One is _hardly_ more google phone than G1 was. This is an HTC phone. This is not a Google phone.

    p.s. I own Nexus One and love it. I just wanted to make clear that this is HTC phone, not Google phone.

    • Nexus2


      The why does it say Google across the back? I hate to burst your bubble but this IS a Google phone and it the first that is TRULY a GOOGLe phone. You'd know that if you actually had the device.;)

  • If I had device? Are you blind? I underlined in my original post that I do have the device. Don't be too optimistic, you did not burst nobody's bubble.

    Here is a picture of my Nexus One device: — if you look at meta data you will see I took it with G1: "Taken with a HTC T-Mobile G1."

    Then, if you look at newer pics of my flickr account: — you will see that they are taken with Nexus One: "Taken with a google Nexus One."

    Furthermore, if you look at G1 phone you will see the same google logo on the back of it.

    It's kind of dumb to keep on going on about it, but I'll repeat this again: HTC Nexus one is google phone. HTC G1 is google phone. Motorola DROID is google phone. You name the rest of them. The point being is that neither of these phones are more google than the other. Google will soon start selling Motorola DROID. Will that be more Google phone than Motorola DROID sold by Verizon?

  • It’s good game I love this game and thank for review.

  • so easy

  • There are so many mobile phones and they all similar features. The only difference is the style, design and technology that was used.

  • Pingback: Google Preps Android Developers for ICS | Android()

  • Pingback: Google Preps Android Developers for ICS()