There was much speculation of an official Google phone to challenge the smartphone champion (iPhone) even before the launch of the first Android device, the G1.  The Nexus One was introduced this week during a private web conference lead by Google’s Vice President of Product Management, Mario Queiroz, after a month of an intense buzz across the web.  During the press conference, the audience seemed discouraged because Google was not being as aggressive with their advertising as Motorola/Verizon was with the Droid.  I felt the same way until I witnessed their impressive banner advertising push first-hand.  When “Nexus One” also made it as a trending topic on Twitter, and as one of the top searches in Yahoo, my doubts were soon demolished.

Let’s take a look at how the Nexus One sizes up to the iPhone 3Gs:

The sales of the phone will take place through Google’s site which is an unprecedented move in the mobile space. Until this week, mobile devices were only sold through the respective carriers’ websites and stores.  Many speculated that this move would allow Google to offer the Nexus One at a low, unsubsidized cost; however, we found the pricing to be very similar to the competition.  The Nexus One is available without a contract for $529 and $179 with a two-year agreement with T-Mobile.  The minimum plan required with the T-Mobile two-year agreement runs $79.99 for 500 minutes unlimited T-Mobile to T-Mobile minutes, unlimited domestic messaging, including SMS, MMS, IM and unlimited web.   A similar AT&T plan for the iPhone runs $89.99 with 50 fewer anytime minutes.

When comparing the Nexus One to the iPhone, one could say that there isn’t much in terms of technology to call it an “iPhone Killer.”  During the press conference Q&A, Google’s Vice President of Engineering (aka Mobile Chief), Andy Rubin, mentioned that Google did not set out to create a phone to send a message to Apple, but rather to provide choice to the consumer.  If that was the initial goal, then Google and HTC meet it very well.  I believe there is a common desire to see a device push the limits far beyond what Apple has done with the iPhone, but it may take some time until it comes into fruition.  On the flip side, any new device on the market that can create enough demand to get users to upgrade to a smartphone, whether it be the iPhone, Palm Pre, Nexus One, or Blackberry, is great for advertisers.  It has been proven that smartphone users are much more active on the web and in mobile search engines than users of standard feature phones, such as a Motorola RAZR.  The more users that search from their phones, the more opportunities advertisers have to address the needs and desires of those that raise their hands. 

So in the end, the goal really isn’t to see an iPhone killer, but a phone that stimulates the desire to surf the web, search, and text as Apple has done since the iPhone’s inception three years ago.

Image Source: Google.com

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