Google Building Hardware Business Around Nexus One, Webstore
Google wants to build big mobile hardware margins from the Nexus One smartphone and future Android-based devices, such as netbooks and tablets, said BroadPoint AmTech analyst Benjamin Schachter. He believes Google desires to build up a mobile hardware business around the Google Webstore. This would ideally be icing on the cake for Google's current mobile search and display ad model. Schachter said it will not state this goal because it fears damaging the powerful brand Google has cultivated over the last decade.Many analysts view Google's Nexus One as a vehicle that will enable the company to reach millions of users of the smartphone with mobile search text and display ads, and possible even click-to-call ads. BroadPoint AmTech analyst Benjamin Schachter is one of those analysts. Schachter has a hunch that, while the search giant won't admit it, Google hopes to actually build up a mobile hardware business around the Google Webstore it uses to sell the Nexus One and future Android-based devices.
Consumers can't walk into a retail store and buy the Nexus One at present. As the merchant of record, Google is selling the HTC-built, Android 2.1-based Nexus One online through its Webstore for $529 unlocked and unsubsidized, or $179 for a two-year contract with T-Mobile. Hardware parts for the Nexus One cost $174.15, according to iSuppli.