With 2009 coming to a close, search engine giant Google has unveiled plans to launch their own phone next year (according to various web sources). Called Nexus One, the phone was designed inside the company and would most likely be sold online, rather than with a telco.
Google Inc. plans to sell a mobile phone directly to consumers as soon as next year, people familiar with the matter said, escalating the Internet giant’s assault on the traditional business model of the wireless industry.
The phone, called Nexus One, was designed inside Google and will be sold, at least initially, without a wireless partner, these people said. It is the latest sign of the Internet giant’s ever-broadening wireless ambitions as Google hunts for ways to expand its Internet services beyond computers. The move, details of which were first reported by The Wall Street Journal on its Web site Saturday, also marks a new front in its growing rivalry with Apple Inc.
Google has purchased and developed technologies that can replace existing communications services. One example is Google Voice, an Internet calling and routing service. Some analysts speculate that Google could eventually deliver very cheap or subsidized service to consumers on its own, in exchange for advertising. The company recently purchased a start-up called Gizmo5, whose service allows users to make Internet calls from mobile phones.
Rather than selling the Nexus One phone through a wireless carrier — as the bulk of phones are sold in the U.S. today — Google plans to sell the Nexus One itself online, people familiar with the matter said, although the company may seek wireless partnerships in the future. Users would have to buy their wireless service separately. The phone’s pricing, along which countries Google initially will target for the device, couldn’t be learned.
While the move gives Google flexibility to distribute software services such as email and maps without playing by wireless carriers’ rules, the company risks making new enemies among companies whose trust it has tried to win.
Source: Wall Street Journal