With mobile commerce expected to blow up in 2010, Google’s new Nexus One handset may be the company’s first step in becoming a leader in that niche of the mobile industry.

Google claims the Nexus One is an example of what is possible on mobile devices through Android. So does mobile commerce now fit into Google’s mobile strategy?

“The Nexus One will most likely advance Google’s mobile commerce leadership since the device is obviously optimized to support a number of new applications from the Android Market,” said Dominique Jodoin, president/CEO of Bluestreak Technology, Montreal.

“The Nexus One had an impressive launch but now we need to examine if consumers will adopt it and if Google can truly generate additional business from this endeavor,” he said. “In particular, it will be interesting to see if this big push from Google will encourage application developers to create the types of compelling applications that they have generated in vast quantities for the iPhone.

“Time will tell if the device will advance Google’s plans for dominating mobile advertising and mobile commerce.”

Manufactured by HTC, the Nexus One features dynamic noise suppression from Audience Inc., a large 3.7? OLED display for deep contrast and brilliant colors, and a 1GHz Qualcomm Snapdragon chipset for faster speed.

Running on Android 2.1, the newest version of Eclair, the software includes innovations like a voice-enabled keyboard so you can speak into any text field, fun Live Wallpapers and a 3D photo gallery for richer media experiences.

Of course, it also comes with a host of popular Google applications, including Gmail, Google Voice and Google Maps Navigation.

Mobile commerce equation
With Google’s $750 million acquisition of AdMob, we already know that the search giant is trying to get its foot through the mobile advertising door. So how does mobile commerce fit in to this equation?

Expect to see Android-specific click-to-buy ad formats.

Additionally, with the launch of the new Nexus One, Google has the opportunity to get involved in mobile commerce through applications and the mobile Web.

“The Nexus One announcement was as much about a new way to buy a mobile device as it was the introduction of what Google wanted to position as a game-changing smartphone,” said Jeff Hasen, chief marketing officer of HipCricket Kirkland, WA.

“Done well, Google will further condition consumers to interact directly with the company in compelling and sustained ways,” he said. “This certainly has advertising and commerce implications.

“What piece of the pie Google receives in those interactions remains to be determined.”

The Nexus One and other Android-enabled phones will definitely have an impact on the mobile commerce space.

Adoption of these phones and others like it will change consumers’ shopping and purchase behaviors and this could result in an opportunity for Google to cash in on the mobile commerce arena.

With more and more consumers relying on phones like the Nexus One, mobile payments, shopping, click-to-buy and commerce is likely to boom.

“The Nexus One and the Android operating system are really at odds here,” said Gary Schwartz, CEO of Impact Mobile, New York. “Discussing whether Nexus One is the next great handset or not diminishes the value of building a strong Android operating system ecosystem. It is the simple reason Microsoft does not complete smartphone handset makers.

“The Nexus One will be a pure ‘Google experience’ with a closed-loop mobile shopping experience,” he said. “However, ultimately Google’s mobile commerce gains will have to come from the operating system and native applications not the hardware.”