Google is well-known for being the number one search engine, for its email services and even for its brand recognition with limited advertising.

Now Google has decided to enter the phone market, and therefore, introduced its new Nexus One cell phone on Tuesday. It also announced that the phone would be available for sale through its new Google-hosted Web store; this created more buzz than the actual phone. The store will allow users to take 3D tours of the phone, and try some of its applications available. It is a surprise that Google finally decided to enter the e-commerce world.

Google’s phone has a competitive advantage over other companies because it will allow the buyer to choose a phone before deciding on a carrier. Google is now basically expanding into every category and will be a strong competitor for existing brands.


http://edition.cnn.com/2010/TECH/01/06/google.phone.store/index.html

Google officially released their own phone called Nexus One. Currently T-mobile is the only provider of Google's services but Google has created an unlocked service. Any mobile company can choose to be apart of this, enabling mobile companies to create competition between one another and offer different prices for Google based phones. As other mobile phones begin to use Google services, I think consumers will benefit. They will have the opportunity and choice to find cheaper smart phones. Google will largely benefit from its mass distributed service but unfortunately I do not think this is a positive change for Verizon Android phones. Considering they just launched towards the end of 2009. But, as Walter S. Mossberg says in The Wall Street Journal, Verizon will eventually sell this service too. The article goes on to talk about the benefits and disadvantages of Nexus one.