The Nexus One is a “smart phone,” which means that it possesses advanced capabilities that goes beyond the typical cell phone, including email services, Internet downloads, and organizer features. What is special about the Nexus One is that it marks the first time that a smart phone of this kind has been available for purchase unlocked, and available for purchase at a discounted rate with a T-Mobile contract.
Google offered T-Mobile and AT&T versions of the phone online in the United States before closing the online store in July 2010.
Introducing the Nexus One
Product highlights include:
• 4 GB storage capacity that can expand to 32 GB
• A 5.0 megapixel camera with video recording
• GPS with turn-by-turn direction and digital compass
• Allows multi-tasking
• Wi-fi enabled
The Cost of a Nexus One
• The cost for a Nexus One for new customers with a contract is $179 
• The cost for a Nexus One for qualifying existing T-Mobile customers who are adding data plans is $279 .
• The cost for a Nexus One for qualifying existing T-Mobile customers who are upgrading their data plans is $379 .
• The cost for a Nexus One without a contract is $529.
• The average cost for a used Nexus One phone without a contract on eBay is $350.
• Applications for the Nexus One are purchased through Android Market. While some apps are free, the average cost for a paid Nexus One app is around $2.
T-Mobile offers the following usage plans for the Nexus One:
• Unlimited voice, messaging and data: $79.99
• 500 minutes, unlimited messaging and data: $79.99
Why Do Unlocked Phones Cost More?
The average cost for a Nexus One depends on the data plan and how you purchase your phone: locked or unlocked. A locked phone will only recognize a SIM (Subscriber Identification Module) card or microchip that is associated with a specific carrier. The subscriber data is also stored on the SIM card. An unlocked phone will work with a SIM card from any carrier. Therefore, a user is not ‘locked’ into using the services of only one carrier.