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Google's Nexus 5: What to Expect

So what could this mean?

One possible scenario could be that the Nexus program continues seemingly unchanged, but that Motorola's new devices launched in 2013 will be de-facto Nexus devices but simply be called something else. This way, Google gets around the political conflict using tried-and-true semantics: "It's not a tax; it's a fee."

Bottom line: The Nexus 5 is mostly about cost reduction and simplification. The price will be driven down, perhaps eventually approaching $199 unsubsidized. Furthermore, a "second" de-facto Nexus line could be launched from the Motorola division, but would be called something else so as to avoid a peculiar form of "channel conflict."

We will know more on May 15.

At the time of publication the author had a position in AAPL, GOOG and QCOM.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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