That innovation could give advertising-based Google the ability to attract about 1 billion mobile-phone buyers from all over the world to its site each year. The site would likely feature ads from third-party vendors selling multimedia content or mobile phone add-on equipment such as headsets, as well as links to Android Market apps, analysts said.
Asked about those advertising-related connections, Andy Rubin, vice president of engineering at Google, made the company's goal clear. "Our primary business is advertising... a superphone [like Nexus One] is a great way to access the Web, and that... supports our whole business model, which is advertising," he said. The new phone and store represent "the next front of our core business," he added.
Google is not trying to make a profit on sales of the Nexus, said Rubin. Instead, it's trying to "make sure we have great access to Google services... and the best possible Web experience," he explained. "You buy this and the advertising model takes off."
Rubin also clarified that it would be "inaccurate to say that Google designed the phone;" instead, he gave credit to mobile phone vendor HTC. Still, it was clear that Google worked on the Android 2.1 operating system used in the Nexus One interface, which includes 3D visual effects and speech-to-text functionality, which allows users to enter content into a text field -- such as a tweet or an e-mail -- by speaking instead of typing.
In the Google Web store Tuesday, Nexus One phones for use on T-Mobile USA's network were available for $179 with a two-year contract. They were also available for $529 unlocked, meaning people could use them on the networks of other GSM carriers.
Google also says there will be a Verizon Wireless