Google Enters Smartphone Market with Nexus One

Strategic Insights -

Google has announced the release of its first branded smartphone, the Nexus One, 15 months after the launch of the Android operating system. The device features a 1 GHz processor and high-resolution touch screen, manufactured by HTC, and is available through Google's website in the US, UK, Hong Kong, and Singapore, with a price tag of $530 unlocked or $170 with a two-year T-Mobile US contract. The Nexus One marks Google's first foray into mobile hardware, produced in partnership with HTC, a company experienced in manufacturing smartphones for mobile operators.

Key Takeaways:

  • The Nexus One features high-end specifications, including a 1 GHz processor and high-resolution touch screen, and the latest Android feature set, such as navigation and voice search.
  • The device is manufactured by HTC, a company with experience in producing smartphones for mobile operators.
  • The price of the Nexus One remains steep, with a full retail price of $530, making it less likely to cater to a mass market accustomed to financing high-end devices through operator contract subsidies.
  • Google's decision to partner with HTC for the Nexus One production is likely driven by a desire to avoid undermining the competitiveness of its Android offerings, which rely on partnerships with hardware manufacturers.
  • Android's aggressive developments pose a significant threat to Windows Mobile, Nokia's Symbian, and RIM's BlackBerry line, with the potential to become the default smartphone OS by 2013.
  • Screen Digest estimates that Android's smartphone market share will exceed 20% by 2013, making it the second-largest smartphone platform after Symbian.

Statistics:

  • Worldwide smartphone shipments are expected to grow from 175m in 2009 to 230m in 2013 (Source: Screen Digest).
  • Android is expected to become the second-largest smartphone platform, with a market share of over 20% by 2013 (Source: Screen Digest).
  • The Nexus One is priced at $530 unlocked or $170 with a two-year T-Mobile US contract.
  • HTC has historically been the largest manufacturer of Windows Mobile phones.

Sources:

  • Google: USA; +1/650 253 0000; www.google.com
  • Screen Digest: No date provided.