These holiday discounts will make the $200, T-Mobile-compatible Nexus S seem like an unattractive option for the average consumer, explained Tero Kuttinen, a telecom analyst at MKM Partners.

“I don’t know what Google is doing here,” he said. “They do software so well. I don’t understand why they do this hardware strategy in such a half-assed way.”

Google’s hardware strategy with its previous Nexus One smartphone was unsuccessful. The search giant failed to get major carriers such as AT&T and Verizon to subsidize the phone; only T-Mobile played ball. So, the only way non-T-Mobile-subscribers could get the phone was by throwing down $500 for an unlocked version of the device.

Surprise, surprise: The only people willing to spend that much on Google’s Nexus One were nerds like us, and the phone didn’t sell well. Duly, the Nexus One was discontinued. (Wired.com’s Ryan Singel recently told a thorough version of that story.)

The Nexus S seems to have the same story. It’s currently available at Best Buy for $530 unlocked, and for $200 with a T-Mobile plan.

The fact its December launch makes the Nexus S smartphone launch even worse, Kuittinen said, because more powerful Android smartphones will be announced at next month’s Consumer Electronics Show, meaning the Nexus S will quickly be superseded. On top of that, there have been multiple rumors that a Verizon iPhone will be announced January.

“When we get to January, there will be multicore phones and the iPhone on Verizon,” Kuittinen said. “That’s the real competition here, not the phones you see right now. For those reasons, the Nexus S doesn’t really offer any sizzle.”

See Also:

• Google Unveils Nexus S Smartphone, Gingerbread OS
• What You Need to Know About Android 2.3 Gingerbread

Authors: Brian X. Chen

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