With the , Google have brought to market a phone which already looks like the slickest Android device to be released to date. It’s likely to be the first in a series of Nexus devices from the search giant, designed to take advantage of the increasingly compelling Android mobile operating system. Whilst the phone itself was the headline announcement at the Mountain View , Google also gave some insight into how they plan to develop their online phone store, which they referred to as a ‘new way to purchase a consumer phone’. This may eventually turn out to be the bigger news from the event, as it’s clear that the Nexus One is just the beginning of what we’re going to see on their online phone store.
A new mobile sales model
With the exception of the iPhone, virtually all mobile phones are currently sold through the networks who provide voice and data services for the device. Customers have traditionally chosen the network first, and the phone second, from a selection of devices that a particular carrier supports. With the launch of the Google phone store this no longer needs to be the case. Customers can choose the phone first, with the choice of network being secondary. Google launched an unlocked phone yesterday, which can be bought directly from them and the implications of this shouldn’t be underestimated. Whilst the price of this first Nexus device may currently be too high to cause a revolution in the mobile market, the sales strategy that Google is pursuing is sure to makes some waves as their phone store builds momentum.
Google made it clear that they will soon be adding more Android devices to the store, including those from Motorola, and also increasing the choice of available carriers. This will potentially bring a great clarity of choice to the consumer, who will be able to simply choose from a list of phones, with the option of adding a plan from a list of available carriers. With just the Nexus One available at the moment on the phone store it’s clear the direction that Google is taking with this:
The Android Store
By creating a single store where customers can easily browse and purchase Android devices Google is looking to achieve a couple of things. Firstly, without changing what the Android project is, they can provide a more unified face to the so far fairly fragmented range of devices running the operating system. Rather than buying the Motorola DROID, which by the way runs Android, customers will visit the Android store to choose an Android phone from a range of devices by various manufacturers. Google is looking to create a one stop shop which can increase the influence of Android in the mobile market and reinforce it as a unified brand in the eyes of the consumer.
By selling directly Google is also subverting the traditional carrier dominated sales model. As the range of devices and carriers available on the store increases it’s conceivable that customers will be able to choose the device that they want, and optionally add a plan from a number of available networks. This would make the phone itself the primary choice for customers, with the plan being added as a service, rather than the other way around. It’s something that Apple started with the iPhone, but Google is looking like taking further, breaking down carrier domination and ultimately putting more power into the hands of the consumer.