Google Launches the Nexus One

The preceding blog post was a summary of some of the most impressive achievements about the Google corporation and one thing that it emphasized is the fact that this corporation has managed to do several things very well. I also alluded to the fact that in spite of its main product being a search engine, the majority of its profits are generated from leveraging that product to generated advertising revenue. Google yesterday launched a smart phone by the brand name Nexus who technical specifications are available here.

While the launch of a smart phone has been expected, the product reviews here and here suggest that while it is a sleek product, it is not as much of an industry changer as the iPod has been. What the reviews note is that the physical object itself is well-designed and will probably sell in good numbers but is unlikely to overhaul the iPhone. Indeed, the story in the NYT confirms that the Google still considers itself principally as an advertisement corporation but would like to advance the use of its Android phone software.

My prediction is that the Nexus will indeed sell in good numbers and that Google's primary purpose is not necessarily to be a major manufacturer of handsets but that it aims to place the Android in competition with other software that power mobile phones. If this is true, then that very sleek and expensive gadget is merely a delivery vehicle for that software. It is also interesting to see the choices that Google has made in terms of the sale of the gadget. It has failed to conform to the trend by availing the option for the purchase of the phone on its own as opposed to the traditional tie-ups with specified service providers that most smart phone firms have required in the US and major markets.

This is smart strategy proving that Google's managers are literate in the subject of economics because they have opted to sell only the gadget without compelling the buyer to take up a predetermined service provider. As a result, the choice of the service provider is left to the person who will pay for the product and thus circumvented the requirement that limits entry for other networks.