5 Reasons Why Google's Nexus One Will Change The Mobile Industry Forever

The Google Nexus One will be changing the mobile industry forever, possibly to a greater extent compared to Apple's iPhone. It is still too early to appreciate the paradigm shift that the search giant will be exerting on the industry.

We've gathered five reasons we believe GNO will mark the dawn of a new era for the mobile phone industry, one which will prove to be a challenge for many existing market actors .

(1) Traditionally, when new hardware is introduced, it often commands a significant premium. The Google Nexus One is a top of the range mobile phone, yet it will go on sale for far less than the likes of the Apple iPhone 3GS or the Motorola Droid.

As we mentioned here, the Nexus One will be available for the same price as a mid-range phone like the Nokia E72, roughly £320.

The GNO could singlehandedly force manufacturers - including its close partners from the Open Handset Alliance - to slash the average selling price (ASP) of their top of the range handsets at launch, something which could have some dire consequences for their revenues.

(2) Google is selling the phone to customers outside the US from day one and it is not a vulgar paper launch. The Nexus One is available with plenty of stock available, it seems.

The Apple iPhone was launched in the US only in the beginning before committing to a global launch schedule for the subsequent models.

(3) Furthermore, Google doesn't seem to be going down Apple's route by bargaining hard to get the most out of exclusive partnerships with mobile phone operators.

Instead, it will almost certainly try to get the phone in as many hands as possible as quickly as possible. It will be interesting to see whether the phone available to T-Mobile or Verizon Wireless will be unlocked ones.

(4) Google will shift the focus from the hardware to the software platform itself. The firm has stressed that the Google Nexus One will only be a conduit for its services and products just like Apple.

For traditional stakeholders like Nokia and Samsung, the phone was the end product until Apple came through and changed the outlook.

(5) Google may not issue a PAYG version of the Nexus One. Unless the mobile phone providers specifically ask for it, it is unlikely that Google will have one.

Eschewing a pay as you go model may force others as well to do the same and therefore explode the market by eliminating walled gardens that many mobile operators want to keep. It might also lead to a surge in SIM Free only deals.