Google Continues Controversial Nexus Line, Launches Android 2.3

Event Summary

December 6, 2010 – Google introduced Android 2.3 Gingerbread, and unveiled the first Android 2.3 device, the Nexus S. Nexus S was co-developed with Samsung and delivers a “pure Google” experience. The Gingerbread SDK is available now. The Nexus S will be available at Best Buy and Best Buy Mobile in the U.S. on December 16 for $529 unlocked or $199 with a T-Mobile contract. In the UK, it arrives at Carphone Warehouse and Best Buy on December 20 for GBP 549 unlocked or free with GBP 35 monthly contract.

Quick Take

Analytical Summary

• Current Perspective: Negative on Google’s Android 2.3 and Nexus S launch, because at this point it is clear that the risks of “pure Google” phones and constant Android releases outweigh the benefits. There is a lot to like in this announcement; Samsung’s hardware looks slick, the virtual keyboard needed improvement, and there are nice tweaks to the UI that will make it easier to see and lower battery consumption a bit. However, Google is willfully upsetting its carrier and hardware partners by sidestepping the normal distribution channel and favoring individual hardware vendors (Samsung, in this case). Google is also risking further OS fragmentation for relatively minor API/UI gains. Why not just wait until the Android 3.0 release, which includes a completely new UI in addition to explicit tablet functionality?

• Vendor Importance: Moderate to Google because this is a point release of its extremely successful mobile OS. Google also believes in keeping Android open – which means that carriers can modify the OS to their heart’s content – but still wants to keep carriers honest and ensure that it can get its full vision for Android into consumers’ hands. The Nexus line is Google’s bid to do that.

• Market Impact: Moderate on smartphone segment, because a lot of Google’s supposed goals for the Nexus line are undermined by its approach to the market. Nexus is not sold through traditional carrier retail channels, so U.S. consumers will not see it on the shelves when they shop for phones. The Nexus S is not truly “unlocked,” as it only has 3G frequency support for T-Mobile’s network in the U.S. (it won’t work at all on Verizon Wireless or Sprint, and using the blazing fast Nexus S on AT&T’s pokey EDGE network would be downright silly). Android 2.3 may not appear on mass market Android phones for months. That said, Android is gobbling up market share, and anything that brings additional polish to the OS should help Google maintain its momentum.

CLIENTS ONLY

Competitive Strengths and Weaknesses

Response & Recommendations

Recommended Buyer Actions

Analytical Perspective

| Client access - Full report in Consumer Devices | More information

Top