Google Nexus One: the Difference Between "Device" and "Service"

There's a downside to "open" approaches to retail distribution and support of mobile devices. Highly-technical users might not mind, in fact, might enjoy, having to play with their devices and software.

Most end users just want things to work. For all its potential problems, tighly-integrated retail approaches, where software, hardware and retail support are integrated, has advantages. That approach tends to reduce the potential for user unhappiness, particularly when after-sale issues start to arise.

That is one downside for the Google Nexus One approach, which has Google selling unlocked devices, without direct retail relationships with service providers. When problems start to manifest themselves, users are likely to become frustrated with Google's ability to provide email and forum support.

As the old saying goes, one of the things about being a service provider is that one "occasionally has to provide some service." Granted, Google actually is acting as a device retailer for Nexus One. But users are not likely to care. They got their phones from Google and they will expect Google to solve after-sale problems.

If T-Mobile did not sell users their phones, they logically are going to refer users back to Google for device-related questions. It is bound to cause headaches, and also is likely to cause some buyers to gravitate towards a Droid, as Verizon will take ownership for all problems that could arise.

"Open" leads to more innovation, no doubt. But the mobile business is only partly about innovation. It is a service business. And that is likely to prove important, going forward.