If the following X phone rumors are true, Google is about try and disrupt the carrier model for cell phones in the United States in a big way.
Right now, it is quite common to sign a two-year contract in the US and then buy a phone for $200 or less. This model has existed for several years, but if you are willing to believe a rumor from Android and Me, Google has had enough and wants to change the game.
We have been hearing about the X phone for some time, and the photos that leaked of an unnamed Motorola device are reportedly an early prototype of the phone. But here is the deal, Google wants to sell the phone for a very low price, possibly as low as $199, without a contract and maybe even offer the ability to customize the phone like you do a PC.
The idea would be that you could customize your phone with a “build-to-order” option and allow end consumers to build phones that fits their budget and needs. If this sounds familiar, it’s because it’s one of the ways Dell managed to break into the PC market so many years ago.
If this all sounds a little too far-fetched, look at what Google did with the Nexus 4; the phone had average specs but a low price and it was nabbed up at an incredible rate. This could have been an early pilot for Google to test the waters for this type of business model and it certainly seems like consumers loved the idea.
The source is claiming the phone could make its debut as early as June (I/O) but may not ship until July (much like the Nexus 7).
It will be quite interesting to see how carriers react to such a model as it is a strong diversion from their standard operating models that we could see resistance by means of not support the phones on their networks.
Source: Android and Me | Image via Tinhte.vn