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.