Google started the Nexus program in 2012 with hopes of creating a device that would offer developers the very best hardware available on the market coupled with a 'pure' Android experience. For a majority of releases, Google has managed the design, development, marketing, and support - but left the manufacturing of the product in the hands of its partners (HTC, Samsung, LG, etc). Now, it seems that Google might be looking to reduce its reliance on OEMs and take a more hands-on approach going forward.
According to The Information, Google is aiming to make Nexus smartphones more like Apple's iPhone, which means it will ultimately be controlling the entire development process and just sourcing components from key hardware partners. The company isn't new to developing its own hardware, as it already makes the Chromebook Pixel laptop and the Pixel C tablet, but those devices aren't as mainstream as the Nexus line.
A recent report revealed that Google has made $31 billion off Android so far and creating its own devices could help the company increase its revenue. It does seem strange though, that Google would be dipping its feet into the pond once again, when it already had the capability to produce smartphones in-house while it was still in control of Motorola Mobility, which it later sold to Lenovo.
Although the alleged plan might result in a higher quality device, Google would still face the challenge of trying to market it and have it become the company's "halo" device.
Source: The Information (Subscription required)
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