Spreading Android cheaply
The firm could well demand that a Gmail account be at least five years old, or limit the $100 rebate to the first x amount of people buying the new device but, either way, even at $200, we imagine Google is keeping fairly close to cost price.
By keeping its phone cheap, Google also has a sure-fire way of boosting Android's market share, which is critical because the larger the number of people using Android, the more relevant developers will find the platform in terms of development, and the better it will get.
Also, if there was ever a company that would strategically sell its product at cost to get it (and its other software) into the hands of as many people as possible, Google is it.
Reuters' sources also note Google eventually plans to become a seller and get commission from mobile operators for every one of its phones sold.
How the firm's current partners react to the news, however, remains to be seen. It is believed many will take umbrage with the fact Google is planning to release its own phone as opposed to simply offering Android to already established handset makers.
With Google's track record, competitors and handset makers certainly have cause to feel anxious, but the proof, it is said, is in the pudding, so we'll just have to wait until January 5 to see if anything materialises.
