It would seem that Google’s proposed foray into the market of smartphones may not be the successful venture that one would have hoped for, as for starters it will be pitched against much more established players o the field.

Those more established players being Apple, Motorola. Palm and Research in Motion. And what’s more some of them are already running on Androids operating system. It is yet to show in Google’s stock price as its past success run had to do with applications that had no physical components.

Perhaps one risk a large one at that could well be around the Nexus One as it is the brutal competition in the market. Both Apple’s iPhone and the Motorola Droid just goes to show that a provider subsidy is necessary to control costs on a smartphone.

It has been spectacled that Google may subsidize costs by allowing advertising within the operating system, well lets face it Google is the king of digital advertising replacement. As more and more smartphones are being sold daily the pool of potential customers is of course shrinking. Source – benzinga.com