NEW YORK (TheStreet) -- He's baaaaack! No, I'm not talking about a zombie in a scary movie or Mitt Romney's future press secretary, Newt Gingrich.
I'm talking about Google (GOOG) selling unlocked Android phones directly again, bypassing the cellular carriers.
Those of you with decent smartphone memories will recall that Google jumped into this strategy once before, in January 2010, with the Nexus One.
The alleged reasons why Google quietly backed away from that strategy was some combination of the following two:
- 1. Google couldn't handle the customer support. Although this isn't surprising for those who try to get customer support from any of the other free Google services, one would like to think that Google could have walked and chewed gum at the same time, compartmentalizing this product. Or, more likely, it was just a terrible execution debacle on Google's side. I mean, simply offering telephone support, if nothing else, is not rocket science.
- 2. Google was pressured, or easily bowed to, the carriers such as Verizon Wireless (a joint venture of Verizon Communications (VZ) and Vodafone (VOD)). Again, this seems like a flimsy argument, because other devices are also sold outside carrier channels. Apple (AAPL) will sell you an unlocked iPhone, and Nokia (NOK) will do the same. Although these unlocked devices haven't been that popular in the U.S., they can be sold, and U.S. carriers seem to have had nothing to fear here.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV