In October 2012, Google unveiled its latest line of Nexus devices, including the Nexus 4 smartphone and the Nexus 10 tablet. While these new devices were met with excitement from tech enthusiasts, some aspects of the product launch left many wondering about the company’s strategy. Why would Google release a smartphone with modern specifications yet omit LTE connectivity? Or why invest in improved Nexus tablet hardware when there is a lack of dedicated apps designed for those screens?
In an interview with Brian X. Chen of The New York Times, John Lagerling, Google’s Director of Business Development for Android, sheds light on the company’s approach to its signature Nexus line of devices.
A Different Goal
The Nexus program is not about competing directly with other smartphone manufacturers or trying to sell the most devices in a single market. Rather, Google’s objective is to drive down prices for quality hardware to make it universally accessible. This goal is reflected in Lagerling’s statement:
"We want to get as many people onto the Internet on mobile phones… and that’s a big deal."
By focusing on affordability, Google aims to increase its core product profitability by getting more eyes on Google software products.
The Nexus Program: An Experimental Approach
Lagerling’s responses during the interview provide insight into the company’s experimental approach to mobile hardware. Unlike Apple, which relies on its products being a hit to justify development expenditures, Google’s hardware need only produce experimentally meaningful feedback. The search and software giant has the resources and strong OEM partnerships to make Nexus a global-scale field test in affordable mobile computing.
In this context, it becomes clear why the Nexus 4 lacks LTE connectivity. By omitting this feature, Google can better understand what users consider essential in a mobile device and evolve the Nexus line accordingly.
The Nexus Program’s Success Metrics
Lagerling also addressed recent statements by Asus regarding Nexus 7 sales. When asked about the lack of app support for larger screen sizes, he stated:
"I don’t have a number for how many apps are properly adding those APIs that you need to put fully to use the extra screen real estate… What I can say is that the Nexus 7 has been a superstrong catalyst to kick off developers’ attention to making those expansions…"
In essence, while there may be a lack of dedicated tablet apps on Google Play, the company is seeing tremendous growth in apps designed for larger screens. The Nexus 7’s impact on developer attention is undeniable.
The Nexus Program: A Frightening Proposition
Google’s approach to mobile hardware is a frightening proposition for competitors whose product development strategies are based on traditional revenue and profitability needs. By focusing on affordability and driving down costs, the company can create a field test in affordable mobile computing that challenges the status quo.
As Lagerling mentioned:
"We don’t release numbers… The Nexus 7 has ‘sold way above expectations.’"
Whether this statement refers to actual sales figures or extremely low expectations remains unclear. Nevertheless, it highlights the program’s experimental nature and Google’s willingness to challenge conventional wisdom.
Conclusion
The Nexus program is not about competing directly with other smartphone manufacturers or trying to sell the most devices in a single market. Instead, Google aims to drive down prices for quality hardware to make it universally accessible, increasing its core product profitability in the process. By focusing on affordability and creating an experimental approach to mobile hardware, the company challenges the status quo and sets a new standard for the industry.
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