Google unveils Nexus One

Taking a page from Apple Inc., Google Inc. today unveiled its most audacious move into the mobile space just a day ahead of this year’s Consumer Electronics Show set for Las Vegas.
That move is the official unveiling of its Nexus One device that it has dubbed a “super phone.” The Nexus One will be manufactured by HTC Corp., which has a history with Andorid-powered devices with the Nexus One being the seventh device it will manufacture using Google’s operating system. Those devices include the first Android-powered device, the G1 that was launched exclusively at T-Mobile USA Inc. in late 2008.
Attempting to disrupt the current status quo when it comes to handset subsidies tied to carrier contracts, Google is offering the device directly to consumers and unlocked for a staggering $529. Customers can also pick up a subsidized model from T-Mobile USA for $180, though that will require a 2-year contract and a rate plan starting at $80 per month. The device will initially be available exclusively through a Google Web site that will allow customers to select their carrier preference and rate plans.
While being sold unlocked, the Nexus One will initially only support 3G networks using the AWS band in the U.S. or the 900/2100 MHz bands used in Europe. That support basically ties the device to T-Mobile USA’s domestic network if a customer wants 3G speeds, though they could use it on AT&T Mobility’s EDGE network.
More surprising, Google notes on its Web site that a version will be available this spring for Verizon Wireless in the U.S. and Vodafone Group plc in Europe. The Verizon Wireless model will include support for the carrier’s CDMA network, but might also include GSM support that will allow use on both Verizon Wireless and Vodafone’s network using the same device. (Vodafone owns a 45% stake in Verizon Wireless and both carriers offer devices that allow roaming on each other’s networks.)
Analysts were initially looking for Google to provide a more open device that supported a wider variety of networks as well as the possibility of Google either subsidizing the model itself without requiring a contract or even going with a mobile virtual network operator model that would make Google the handset provider and network carrier.
As for software, the Nexus One runs the latest Android 2.1 operating system first seen on Motorola Inc.’s recently launched Droid. That device was lauded by many for offering Google’s free navigation service that will also be available on the Nexus One.
Building on the greater capabilities of the Android 2.1 OS, Google said the Nexus One will allow greater personalization of the home screen through the use of widgets that take advantage of the device’s native hardware capabilities.
As for hardware, the Nexus One sports a 3.7-inch AMOLED display that is similar in size to Motorola Inc.’s recently unveiled Droid as well as a Qualcomm Inc.’s 1 GHz Snapdragon processor, making the device the fastest smartphone on the market. Other features include the now-expected accelerometer, support for GPS and compass applications, a 5-megapixel camera with flash and video support and an included 4-gigabyte memory card that is expandable to 32 GB. The camera also supports one-touch uploading capabilities to Google’s YouTube service.
Analysts were a little concerned that Google’s move into the branded-handset space could upset some of its current device partners, which have thrown considerable support, and in some cases the future of their existence, behind the Android platform.
“Google might start with an unlocked-only version priced at a premium and not tied to any single carrier as a way to keep the momentum they have gained with their Open Handset Alliance partners,” said Ross Rubin, director of industry analysis at NPD Group Inc., prior to the device’s launch.
That momentum includes the Droid at Verizon Wireless, which according to estimates sold more than 1 million units during the final months of 2009 and has been Verizon Wireless’ main marketing tool against Apple Inc.’s iPhone available exclusively at rival AT&T Mobility.
Looking to temper claims that its network was not up to the task of supporting Google’s new super device, T-Mobile USA sent out reminders this morning that its rapidly expanding 3G network covers more than 200 million potential customers and that unlike larger rival AT&T Mobility, all of its 3G coverage supports the HSPA+ 7.2 standard. AT&T Mobility is just now starting to roll out the speedier 7.2 version of HSPA onto its network.