The interwebs have been a buzzing today with news of the Google Phone, a.k.a. the HTC Nexus One, getting FCC approval. The Google Phone is an unlocked, carrier unbranded device, made by HTC to the exact specifications of Google and will be sold only by Google through various retail outlets.
The Google Phone, essentially, should run Android exactly the way Google intends for Android to be run. This makes me wonder… Will the Google Phone and its future iterations will get a bit of preferential treatment from Google in the way of features and functionality as Android evolves?
When I first heard about the Google Phone I first thought that Google would give it features that they don’t put on other phones but as I think about it more, Google won’t be able to get away with doing this because they still have to keep the carrier subsidized devices running android competitive.
No matter how cool Google makes their own phone, some people simply won’t shell out the doe without it being subsidized, especially when iPhones and Blackberrys still are.
Isn’t the Google Phone supposed to have advertising built in to keep the price of the phone low?
YES. And the carriers and RIM should be very nervous.
@ The Rock,
I know that you’ve thought that this is how mobile devices should be sold for a long time, and, although I don’t think that we are quite there yet, it will be interesting to see how Google fairs selling direct.
DroidDude makes a good point when he says that some people simply won’t pay for an unsubsidized phone. It is just part of our culture (US and Canada) that we get significant discounts on mobile devices when we sign up to 2 or 3 year contracts. It is going to take a bit of time for that culture to change. In the short run I don’t know that advertising will be enough to offset the difference on what you would spend on Google Phone as compared to a carrier subsidized device running Android.
If any company could afford to run in the red on hardware costs so that consumers could, or, would be willing to pay to buy a device direct and worry about the carrier after the fact, Google is that company. If they can get the Google Phone into consumers hands in that $200 to $300 range, I am guessing that they will do pretty well…
To answer your question Robb, yes, the Google Phone will get preferential treatment. The device is built to their exact specifications and has the name Google on it.
Please don’t assume for a minute Google needs to realize a direct profit from the sale of each unit. They have a much bigger game plan and that is being DOMINATE in cloud computing, communication, and EVERYTHING they are involved in! Profits come from from various sources and it is the OVERALL bottom line that counts. Trust me, this is the BEST run marketing company today and they know how to drive business to their door, not always obvious to us.
With that said, what would guess the selling price of this Google Phone is going to be?? Anybody?