If Google wants everyone on board, why don't they work on a super cheap unlocked phone?

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What's keeping them from marginalizing the cost of conduit? Remove the barriers to entry to get to their services as easy possible, and ship a phone that's doesn't cost $750 unlocked? That's what Google X should be working on. A $75 unlocked phone, now that's one moonshot that's actually directly aligned with the company's core goals.

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tynamite

Good question. Your proposal is exactly what Google wants to do.

What Google wants is every piece of content to be free, with the creators of their content earning nothing, while it's served with their adverts. You have seen this attitude with Google Books, Android applications, Google TV, Google Music, etc.

In fact Google wanted the Nexus phones to be free, in typical Google fashion, but they weren't allowed.
Then they decided to make their Nexus phones cost $100 so the manufacturers could profit, but they weren't allowed.

The carriers stopped them.
I can't find the link, but it was on Business Insider.