Google Pals Up With T-Mobile to Push Its “Nexus One” Phone
Google plans to sell its new phone on its own Web site, without getting a wireless carrier to subsidize the handset.
But that doesn’t mean Google (GOOG) won’t also work with a carrier: The search giant intends to launch its touchscreen phone next year with the help of T-Mobile say sources familiar with its plans.
Traditionally in the U.S., consumers buy phones directly from carriers, which eat some or all of the cost of the handsets–sometimes amounting to hundreds of dollars–in exchange for signing up customers to often controversial multiyear contracts.
Whether or not Google will subsidize the cost of the phone–via advertising, for example–is unclear.
But for sure, Google does not intend to sell its new “Nexus One” phone the typical way, sources familiar with the company’s plans say. Instead, it envisions a scenario where customers who buy the handset on a separate Web site are provided with a list of carriers from which they can make a selection menu-style.
Google has approached multiple carriers about supporting its new phone, which it designed itself and will be produced by Taiwan’s HTC, offering this selling scenario, sources say.
HTC, by the way, built T-Mobile’s G1 phone, the first Android-powered handset.
But so far, only T-Mobile has agreed to consider this arrangement and actively help push the phone, via various distribution channels and support infrastructure, I’m told.
The Nexus One handset uses GSM technology, which means that in the U.S., only mobile customers who use AT&T (T) or T-Mobile’s networks could use the “unlocked” phone anyway.
But, sources say Google’s decision to use GSM came only because Verizon Wireless (VZ), which uses the rival CDMA technology, has so far declined to help the company push the new phone.
Sources added that Google, keen to change the way mobile devices are sold in the U.S. especially, would still prefer to cooperate with telecom giants in selling phones rather than fighting them.
A T-Mobile spokesman declined to comment, as did one from Google.
T-Mobile’s plan to work with Google shouldn’t be a huge surprise given that the U.S. subsidiary of Deutsche Telekom (DT) already sells four phones that use Google’s Android platform.
Then again, Verizon is currently spending lots of money promoting an Android phone of its own–the Droid–produced with Motorola (MOT).
AT&T (T), the exclusive seller of the Apple (APPL) iPhone, is another story, having no Android phone in the works and having tussled with Google in the past.
Comments
I really think Arrington blew this one out of proportion. It seems like the 'Nexus One' is Google's holiday gift to its employees, then will eventually drop as the next “by Google” phone on T-Mobile.
Not really sure where all the hype is coming from.
Posted by Ben Kessler at December 14th, 2009 at 3:16 amIn want one of the new Google phone.
Posted by mikecady at December 14th, 2009 at 6:25 amCan I pre-order a Google phone ?
Posted by mikecady at December 14th, 2009 at 6:27 amWhen can I per-order a Google nexus 1
Posted by mikecady at December 14th, 2009 at 6:29 amT-Mobile totally sucks balls
Posted by rtfriscooffice at December 14th, 2009 at 7:47 amSources say?
“But, sources say Google’s decision to use GSM came only, because Verizon Wireless (VZ), which uses the rival CDMA technology, has so far declined to help Google push the new phone.”
Surely it's far more likely that Google spotted the fact that under 10% of the 2bn mobile phones out there are CDMA phones. The other 90% are GSM phones. I'd guess that the attraction of 1.8bn potential customers for a Google phone beats even the attraction of 90m Verizon Wireless subscribers.
Posted by millarm at December 14th, 2009 at 9:42 amMy guess is $199 in retail stores unlocked, but with rebates as much as $100 if you order using your Google Account and that Google determines you to be having a long enough and active enough Google account. For example, if you have something like at least 2 years old Google Account and you use many Google services, then Google should be providing you with the $100 online rebate.
My guess is that the online rebate could either let you pay $100 less to buy it online, or it could provide you with $100 in credits that you could use on carriers for data access on free pre-paid SIM cards. My guess is T-Mobile and AT&T will provide 5GB data sim cards for $29 per month pre-paid only. So you could get a bit more than 3 months of that free from Google included in the $199 phone.
Other places to use your $100 credit could be on any Google Checkout stores, on Google Android marketplace apps and services, on Google services such as Picasa, App Engine, Gmail and others.
Posted by Charbax at December 14th, 2009 at 4:03 pmMy guess is $199 in retail stores unlocked, but with rebates as much as $100 if you order using your Google Account and that Google determines you to be having a long enough and active enough Google account. For example, if you have something like at least 2 years old Google Account and you use many Google services, then Google should be providing you with the $100 online rebate.
My guess is that the online rebate could either let you pay $100 less to buy it online, or it could provide you with $100 in credits that you could use on carriers for data access on free pre-paid SIM cards. My guess is T-Mobile and AT&T will provide 5GB data sim cards for $29 per month pre-paid only. So you could get a bit more than 3 months of that free from Google included in the $199 phone.
Other places to use your $100 credit could be on any Google Checkout stores, on Google Android marketplace apps and services, on Google services such as Picasa, App Engine, Gmail and others.
Posted by Charbax at December 14th, 2009 at 4:08 pm$199 barely covers the cost of parts on a phone like that – iSupply estimates cost of parts for an iPhone 3GS at $179.
Posted by ianbetteridge at December 14th, 2009 at 4:46 pmLast I saw an isupply thing for bill of material on the iphone was below $150 for the basic lowest storage capacity model.. Google doesn't look for making profits on hardware, they will make their profits on ads over the several months or several years that the hardware is being used. So obviously Nexus One comes with 8GB built-in storage and with MicroSD for storage expansion.
Posted by Charbax at December 14th, 2009 at 4:49 pmHere's another good guess, it comes unlocked with a Google SIM Card, which provides unlimited free VOIP calls, Gmails, Gtalk, Gmaps and basic web browsing and other low bandwidth Android app pings. For higher bandwidth stuff, Google will partner with T-Mobile and AT&T and sell packages of Gygabytes to use either per month or to use whenever you want.
Posted by Charbax at December 14th, 2009 at 4:54 pmPerhaps you're thinking of the 3G. The 3GS BOM report is here:
http://www.isuppli.com/News/Pages/iPhone-3G-S-C...
Posted by ianbetteridge at December 14th, 2009 at 5:09 pmWhat ads? Or, more pertinently, what ads that it will sell because someone is looking at a Google Phone rather than an iPhone, or other Android phone?
There is no trackable ROI on Google significantly subsidising phone hardware. While G has plenty of money to throw around, effectively giving away phones makes no business sense.
Posted by ianbetteridge at December 14th, 2009 at 5:12 pmCharbax, who's network is that Google Sim Card going to work with? Who will be providing that bandwidth? It's got to run across someone's network, and Google doesn't own one.
Posted by ianbetteridge at December 14th, 2009 at 5:14 pmThe Google SIM card will work accross all compatible networks. All of course only depending on the deals Google will sign with AT&T and T-Mobile and any other compatible HSDPA carriers in the world. My guess is Google will negociate huge bandwidth deals on 3G networks and give or sell that back to Android users. You could get 100mb free usage per month, enough for as much Google Voice, Gmail, web browsing (with easy disabling of images and other bandwidth intensive things), and with upgrades of 1GB for $10 or 5€, the extra GB which you can use anytime you want, so not a monthly fee. Unless you will want 5GB in the US or 10GB in Europe for $29 or 20€ that expires after 1 month and has to be renewed each month.
Posted by Charbax at December 14th, 2009 at 5:18 pmGoogle just bought AdMob for $750 Million, they wouldn't have done it if they didn't believe they can make huge profits on Internet connected mobile phones. Selling unlocked $199 Nexus Ones, Google would not loose any money. My suggestion for subsidy by Google would only be by Google only giving that online rebate to long-time and very active Google users. Estimates I have seen show that Google makes more than $40 or $100 per very active user of its online services. That is just on basic ads. What you do is you divide Google's yearly revenue by the number of very active users. How you calculate that is just compare the number of times you use Google servers and load Google pages per day with the number per day of the average Google user.
Posted by Charbax at December 14th, 2009 at 5:25 pmYou can get one of these free when they're released: http://www.want-free-gifts.co.uk
Posted by wantfreegifts at December 14th, 2009 at 10:10 pmAs fas as I know one radio chip does not support both the TMO 3G band as well as the ATT 3G bands. Most likely it is one or the other and the European 3G bands. SO it can't be a “universal” GSM unlocked phone
Posted by tmeyer2000 at December 15th, 2009 at 2:37 amthis is good news. It is better to have affiliation program like the amazon online bookstore. Then I can join it and sell the mobile
Posted by andy_textbooks at December 15th, 2009 at 5:32 amThanks for nice info.
I found a totally free classified, have a look.
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was really hoping for a completely new piece of hardware from google (i.e. not built by anyone other than google).
Posted by Jessica From TecheSpot at December 15th, 2009 at 1:04 pmYou're assuming that Google plans to sell this internationally… in the US, CDMA (Sprint / Verizon) has more subscribers.
Posted by vaximily at December 17th, 2009 at 7:40 pmI think it would be more likely that you'd see advertising inside / alongside of Apps than when you try to make a call.
Posted by vaximily at December 17th, 2009 at 7:40 pmYou have a lot of guesses and suggestions, don't you Charbax?
Posted by vaximily at December 17th, 2009 at 7:44 pmMillarm, I have to admit that your comment regarding GSM's relative market share made me chuckle. Thanks for brightening my morning!
Posted by Change-of-Address at January 5th, 2010 at 2:33 pmHm, to my mind T-Mobile can outperform its rivals very fast with such speed of development and getting investments.
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