As you all know, Google started selling the Nexus One phone this week. They also provide their Android OS to various other smart phone manufactures. Since Google now sells their own branded phone, it is believed that handset makers will be discouraged from working with Google since it may reflect a conflict of interest between Google and the phone manufacturer. They may prioritize their own branded Nexus One over the manufacturer’s product.
“No one has ever succeeded in selling their own device while trying to license to partners simultaneously,” said Michael Gartenberg, an analyst at Los Angeles-based research firm Interpret LLC. “As much as Google can say it’s not a Google phone, the phone says Google on it. They’re going to have to convince their licensees they’re not in competition with them.”
Do you think it is a conflict of interest for Google to develop their own smart phones as well as the OS for other manufacturers’ phones? We will see how it all plays out.