No iPhone 5 gives Google a Nexus opportunity.

The one thing I thought I was going to see but didn't during this years WWDC was the oft rumored 4" iPhone 5. I began to think that this could be an excellent opportunity for Google to chip away at the iPhone mindshare. With Google I/O less than two weeks away, do you think that a new Nexus phone and tablet, sold shortly after the conference and heavily promoted by google itself, could possibly seize the moment to have a hugely successful phone that is also a google flagship.

Think about it, the iPhone 4S, despite being successful as they all have been, tempered some of the excitement by essentially being the same exterior design. If Google were to strike with a great device, with the right price unlocked, can give google a foot in the door and have a great seller that happens to be a device purely under their control.

I think it's important that Google not only makes Nexus devices available, but work to ensure they are successful. It is in googles best interest to get these devices in as many hands as humanly possible. The more people have them, the more people know Google's stock android experience as THE android experience. Google has even said that subsidizing device through ads is under consideration.

Subsidizing an Unlocked Phone? Google Could!

Give this a thought. What if they chose to subsidize the phone by a substantial portion per device to make the price point comparable to an on contract phone, like say bring the unlocked price of the phone down to $299, and try to make it up on the backend through app advertisements and Play store sales?

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It is not as if it's beyond the company to eat large amounts of money for the sake of pushing something. This IS the company that sent out 60,000 notebooks for a Chrome OS beta test, FOR FREE with no strings attached. Even if they only were $100 in materials that is still 5 million dollars. Now if they wanted to make a huge play, I would make a Nexus phone that would retail unlocked for 300, perhaps taking a potential loss, but gaining a huge number of users. Pure Unlocked Stock Google users.

The Galaxy Nexus is selling on the Play Store for $399 unlocked, so it's either making some sort of profit at that price, or Google is eating some of the cost. I don't know which, but making a fairly high end phone cheaper AND unlocked raises some interesting possibilities. You can begin to squeeze out the low end android phones that give android a bad reputation with some users. Also with things like the Kai Platform coming on the Tablet front, the low end no longer has to be low specs, and a better android experience will be had by all.

I know there may be flaws in this potential strategy, but I'd like to hear from you all. Would this work. Is there a window of opportunity for Google to capitalize on at all. Your thoughts.