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Chronicles

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Google Looks to Play it Safe With Nexus S

The Nexus One had such ambitious goals: It was going to push the state of Android hardware and it was going to establish a direct-to-consumer model for unlocked phones.  Now Google seems to be trading its ground-breaking approach for something more familiar …

GigaOM Ryan Kim

Context & Ripple Effects

When the Nexus One surfaced in December 2009, Google framed it as a statement device: the first Google Phone photos showed Android 2.1 on-board ahead of an invite-only retail sale starting January 5th, and the company bet on selling unlocked phones directly to consumers rather than through carriers. The experiment ran into reality quickly — the January review cycle was respectful but hardly rapturous, and commentators openly debated whether it was a world-changer or just a bad idea.

A year on, the leaks tell a different story. Syndicated pickups from Gizmodo and Android Phone Fans show unconfirmed first pictures of a Nexus S built by Samsung, with Best Buy confirming the device is real and would have landed at T-Mobile. The through-line of the GigaOM piece is what Google has dropped: the direct-to-consumer unlocked model that defined the Nexus One's ambition.

First-order effects

  • Google hands its next flagship Android phone to conventional retail — Best Buy and T-Mobile become the points of sale, ending the web-store-only approach that made the Nexus One a direct challenge to carriers.
  • Samsung inherits the halo role HTC held with the Nexus One, getting a stock-Android reference device timed against its own Galaxy line.

Second-order effects

  • Carriers regain their gatekeeping position over marquee Android launches, since the phone arrives subsidized and locked inside the normal T-Mobile sales channel rather than as an unlocked outsider.
  • Rival OEMs lose the pricing anchor the unlocked, contract-free Nexus One provided — without Google setting a direct-sale benchmark, carrier-subsidized pricing stays the default frame for every high-end Android handset.

Third-order effects

  • If the pattern holds, the Nexus program settles into a developer-and-reference play — a clean build of Android for the ecosystem — while distribution power stays firmly with operators and big-box retail, closing the chapter on manufacturer-direct phone sales as a serious model for this generation.

The trend: Android flagships are reverting from manufacturer-direct, unlocked distribution to the carrier-and-retail channel, with Google's own Nexus line following the industry back inside it.