Google is getting ready to hold an event in San Francisco today where it’s promised to “unveil some exciting new treats.” Practically everyone in tech expects the event will be devoted to Google’s line-up of Nexus phones, which run stock Android.
First launched in 2010, they’re Google’s way of showcasing its latest upgrade to Android before other device makers finally get around to installing the OS on their own phones. Unfortunately for Google, the Nexus series hasn't gained much traction with mainstream users (Google recently admitted to sales declines of its latest Nexus effort) and carriers have been slow to stock the devices in their shop fronts. Nexus phones don’t even register on analyst estimates for vendor sales each quarter. For the most part, they've ended up in the hands of app developers and a niche of early adopters in tech.
In spite of this Google has released a new Nexus every year since 2010, partnering with an array of vendors including Samsung and LG. And this year it’s expected to release two new phones, a Nexus 5X from LG and a larger Nexus 6P by Huawei. While last year’s Nexus 6 from Motorola was a pricey $649 unlocked, Google will reportedly lower its price points for the 2015 duo, with the 5X costing $380, according to Android Police.
But why continue the Nexus line-up at all when the end market is so small, and why with two new phones? The answer may be the wireless service that Google announced last year, called Project Fi. Widely seen as a move by Google to spur better pricing and wireless plans among traditional mobile carriers, Fi has offered some of the most transparent pricing for data and calls on the market.
Users (currently only in the U.S.) pay $20 for unlimited calls and texts, then a further $10 for each gigabyte of data they plan to use. If they go under their data allowance, customers get refunded their unused data credit. For instance, if you pay $20 for calls plus $30 for 3GB of data but only use 2GB, you’ll get $10 back at the end of the month.
It's refreshingly straightforward -- but the service has got mixed reviews from tech sites. Gizmodo complained of infuriating black holes in connectivity, and CNET said its data speeds were relatively slow. (Google toggles users between WiFi calls and rented lines from Sprint and T-Mobile.)
One of the biggest problems with Fi has been that anyone who applies to use it is limited to just one phone: last year’s large and rather-expensive Nexus 6. Google had to limit the service to the Nexus because it included a unique radio for supporting different cellular networks, as well as a special Project Fi SIM card.
Google now has a chance to break its Nexus phones out of their niche by marketing them to people who are interested in trying Google’s cutting edge wireless service. The service in turn could grow thanks to the option of two new phones. Google didn’t respond to a request for comment on whether the new Nexus phones would be compatible with Project Fi, but it seems inevitable that they will if Google is serious about its wireless ambitions.
Project Fi is still reaching customers through an early access program. People who’ve posted to the Project Fi Google Plus community often speak of applying and waiting months for their Fi welcome pack. Once you get the phone and SIM though, users can connect to the network in a matter of minutes.
A pair of new Nexus phones could make it quicker for more people to join Project Fi and amplify the service’s popularity. Right now the competition among carriers for financing smartphones has, blessedly, been heating up, with Apple most recently jumping into the fray with its new iPhone Upgrade Program that lets customers pay for a new phone each year with monthly instalments.
Google Fi also offers a 24-month financing plan for anyone that wants to get on its network without paying for a phone upfront. Cheaper Nexus phones should make that plan even more popular.
If Fi can polish up its service and Google can can unveil some attractive phones with compelling features, it has a better chance of bringing more customers into the program, and bringing more heat to the wireless market as it originally intended.
