After a much hyped launch of Google phone aka Nexus One on January 5th, 2010, we believed it would change the way US buys mobile phones. With an assured adoption across all 4 major telecom providers: T-mobile, Sprint, Verizon and AT&T in US, it was sure a very good promise.

Though rumors of Google mobile were doing rounds since 2 years when the Android was launched, the hype machine reached fever pitch with many leaked images of mobile. Google had already given device to its employees. Finally when Nexus One was launched in January, it was the best Android phone out there. It was supposed to fight supremacy of Apple’s iphone with all the power and might of Google behind it now. The world media raved about it and pundits predicted this would hurt other Android devices. We knew Google was serious about phone business.

But since then things have started turning other way round for big G. Last week Verizon announced that it is dropping plans of supporting Nexus One for more powerful HTC Droid Incredible, and now Sprint says it will focus on HTC Evo 4G.

This has put future of Nexus One on cloud. The ever increasing roll out of newer, better, faster Android mobiles over last one year has cannibalized many mobiles and now its Google’s turn to taste similar fate. To some extent this was predicted. Google relied on its close friend HTC to get the best hardware for its mobile. It finalized all minute details of looks and spec before going forward. It also had full control over operating system going to be shipped on device. So naturally it was going to be a hit. What Google forgot was HTC and other device makers can beat it in hardware game. HTC Droid Incredible, a la Nexus One with better camera, topping of HTC Sense UI and a sweet contract from Verizon was too tempting. At the same time, Sprint is putting all its marketing muscle behind the next generation 4G networks it has build using Wi-Max. It will be releasing first Android phone with Wi-Max, HTC Evo 4G. Not only Evo has got superb hardware underneath it, it will be bringing network speed up to 10 times faster than present 3G network. Also Dell is planning to make entry in mobile device game with best Android hardware and latest Android version 2.2 Froyo.

All this puts Google’s Nexus One in a weak spot. Although it might continue selling device, but it will not be a huge path breaker and profit earner for company as Iphone was for Apple. Google however maintains that Nexus One is profitable business but it will continue to be a drop in ocean when compared to mammoth advertising profits that Google make every year. The wise thing for Google would be to stop trying to sell device and focus its efforts on making Android better and more powerful.