Google Logo At Tel Aviv Office
The Google logo is seen on a door at the company's office in Tel Aviv January 26, 2011. Reuters/Baz Ratner

For its Nexus 2015 release date plans, Google may see the need to deviate from the Nexus 6 business model. As a result, the next Nexus flagship smartphone will likely come out with lower price than its immediate predecessor.

A cheaper Nexus 2015 version was hinted in the latest earnings report that Google made public this week. In it, the tech giant reported that most of its business operations are making money and are performing to expectations save for one area – the Nexus division.

According to 9to5Google, the internet search giant has admitted that “the Nexus 6 has not performed as well as it had hoped.” Google allowed that 2013 delivered better results when the Nexus offering was headlined by the LG-made Nexus 5 phone and the Asus-assembled Nexus 7 compact tablet.

Google noted that while its Play Store roared its way to what was dubbed as “other revenue,” gains of up to $1.8 billion in 2014, a huge dent was seen when the duo of Motorola Nexus 6 and HTC Nexus 9 tablet fell short of projections. “Year over year it hasn’t been as strong given the strength of the Nexus 7 last year,” the 9to5Google report quoted Google CFO Patrick Pichette as saying.

Lessons learned

The latest data suggest many things but for Google’s Nexus business, two things can be immediately highlighted. For one, the tech giant may find it prudent to recall the winning formula that was used with the Nexus 4 and 5, which arguably are the more popular builds of the flagship smartphone line. That would mean tapping LG anew as its Nexus hardware partner.

But more importantly, the Nexus maker may scale back on its approach by redrawing its signature phone. The build, design and components of the handset could be revamped in order to make the tag price more consumer-friendly. This could translate to a more affordable Nexus 2015 phone.

As noted by 9to5Mac, such move would make sense as the Nexus 6 hit the market last year bearing a sticker price that is $300 more expensive than the Nexus 5. The Motorola device starting price was $649 while the LG phone was ready to take home for only $349.

For most buyers in late 2014, the choice was easy. Either they grabbed the Nexus 5, which remained available when the Nexus came out, or they looked elsewhere for alternatives. The year 2014 also marked the ascent of Chinese-branded phones like Xiaomi and Huawei.

These devices sold incredibly cheap but deliver specs and features that matched or even exceeded the major players. There is little doubt that biggies like Samsung and Google were hurt by the competition from China and the latter just confirmed that with its latest earnings call.

The LG G4 pattern

The latest Google report only reinforced the rumour that the company is set to anoint LG as the 2015 Nexus maker. As revealed so far, the LG G4 will boast of high-end specs like its Quad HD display, premium look and build and insane camera features.

To date, the G4 remains the most solid candidate as the base-model for the Google Nexus 2015 on its release date. But it remains a big question if Google would bring back the old Nexus formula of powerful hardware yet affordable pricing in time for its next Nexus thrust.

To report problems or leave feedback on this article, email: r.pineda@ibtimes.com.au.