The rumours about a Google branded phone have been circulating ever since Google’s mobile operating system, Android, was first announced.  These rumours were given a little more credence over the weekend however; when it emerged that Google employees were given new Android based handsets to use.

These new mobile handsets, which have been dubbed the ‘Nexus One’, are being manufactured by HTC (currently the most prominent phone manufacturer to be pushing Google Android).  If the rumours are to be believed (and as the hours pass more and more evidence is emerging to suggest they are accurate) the mobile phone will eschew tradition and be sold direct to customers online, rather than through the established mobile networks.  This is a bold move and one which, on the surface, is definitely appealing to consumers like me who have held off on purchasing an iPhone not because of the device but because they don’t want to be tied to an 18 month or 2 year contract.

Early reports about the device are strikingly positive (although they are primarily be emanating from Google employees and as such need to be taken with a pinch of salt) with the phone being referred to as an “iPhone on steroids”.  It certainly borrows a lot from the iPhone aesthetically (as can be seen through some leaked photos on engadget) and the Android operating system is full of potential, with application market would hopefully be exploited fully by homebrew developers were the handset to take off.

The major question mark hanging over the potential success of the device is the price.  It is well known that the network providers subsidise the price of the handsets and the worry is that Google could end up pricing themselves out of the contest.

So what do you think about Google entering the mobile phone space with a new piece of hardware?  Is it a wise move to try and cut out the mobile networks or will it ultimately backfire if the handset is unable to be priced competitively?  Should Google simply focus on search and leave the mobile space alone?

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