Google...I am Officially Underwhelmed. Why the Nexus One is Not Iconic

So it was with much fan fair that Google announced the Nexus One today. After years and years of speculation, Google ended its position as a "simple software" company (or more accurately, an advertising company that uses software) to become a hardware company producing (along with HTC) its own wireless device.  Needless to say, there was much rejoicing in the blogosphere with rumors, write ups from Endgaget Endgaget and Wired (and even my own HERE), and postulations everywhere. 

So...what do we think of their first foray? Well...before we discuss that, lets focus on what we learned today.

What we now know and like:

1) It's Pretty: The Nexus One looks a whole lot like what every "iconic" device since the iPhone was launched. It is small, sleek, curvy and black. 

2) It's Android: This one was obvious. Google has apparently built its own version of its Android software to power this phone, but it is still Android. While Android isn't as popular as many other mobile OSs, it is still damn good and worthy of being the OS for this device.

3) It's got an awesome camera: Honestly, I still think that except for voice (and triaging email), the camera is the next most useful capability for a smartphone. At 5 megapixels and a flash, this camera really a legitimate replacement for anything but an SLR.

4) It's unlocked: More on the negatives of this later...but there is something to say about being able to buy this device contract and commitment free. This is the model for most of the rest of the world and I see no issues with this being an option in the US too. Of course, I am not sure how practical the benefits are.

5) You can buy it off the web: Getting one is as simple as going to www.google.com/phone and buy the Nexus One yourself. Admittedly, ecommerce is not magic...but given that I have never bought anything from Google you can touch, I have to give them props for trying this approach. Needless to say though, it will be a little interesting to watch what happens when there is problem with the mail.

What we now know and DONT Like:

1) The tag "Superphone:" First...just because you say something is "super" doesn't mean it is. Second...I am not sure the Nexus One is that much better than other Android-based devices already in the market from Sprint, Verizon or T-Mobile.

2) It's on T-Mobile: Umm...seriously? I mean, yes, they had the first Android phone...but if you want to launch an iconic device with incredible data / Internet capabilities, T-Mobile is not that carrier.

3) It's expensive: In Europe and Asia, buying a phone at full cost is considered normal. Unfortunately, that is not the case in the US. Here, even the smartest of smart phones are expected to cost no more than $250. It is great that Google has made the phone unlocked, but at $530 ($179 on a T-Mob plan) that benefit comes with a steep cost. Honestly, it strikes me as hubris (or naivety) that Google went down this path.

4) It doesn't allow tethering: WTF?!? If only to upstage the iPhone, this functionality should be in day one. Tethering is a key feature that many folks expect (especially the "prosumer" types who buy smartphones). To not have it speaks to unnecessary restrictions. And then no multi-touch either?!? Oh man...

5) It doesn't sync with exchange: Seriously? We all know Microsoft is the root-of-all evil, but Microsoft is still a necessary evil. Please tell me I am wrong on this one.

6) It is not iconic: Given the wait, hype, and emotion surrounding this launch I frankly, expected more. Not that the Nexus One doesn't seem to be a good device (maybe even great)...but it is not that different than Android phones that were available yesterday (pre-Nexus One). 

What we have concluded:

The one thing that I see the Nexus One as being a game changer is the fact that Google is now in the mobile hardware business. After all, even Microsoft, with its Windows Mobile / Phone and eponymous software never strayed into this line of business (maybe that now changes?). The fact that Google has decided to do so is a big deal...and one that will have long term implications to its other channels and partners...and potentially the very future of Android. I am sure that the folks at the Googleplex thought long and hard over this issue, but this change is momentous. 

As I noted in this title however, I am still underwhelmed with the Nexus One. Yes, it seems to be a cool new device, but that is about it. The hubbub around its launch was misplaced, as were the expectations. Whether this was because Google was so hands on in its design, or the US wireless market so restrictive, or HTC was holding back, I don't know, but in the end, what we got today was probably not well-aligned with the pre-launch expectations.