Wall Street analysts view news that Google expects to launch its Google phone — most likely during the first half of 2010 — as a significant, but expected weapon in the competitive battle for the wireless consumer, especially in the U.S. The unconfirmed name: Nexus One.

Tweets on Twitter from Google employees, and a post on the company’s mobile blog, set off the media firestorm during the weekend that had analysts rethinking strategy and stock prices.

Since pricing details are not yet available, Bernstein analyst Jeffrey Lindsay points out that unless Google is prepared to subsidize the devices, it will retail at the typical smartphone price — about $500, the price a Droid costs if bought from a retailer such as Best Buy. “We think the strategy is risky because all previous attempts to sell directly to the consumer in the U.S. have thus far have been an abject failure,” he writes.

Calling the decision a “risky step to jumpstart Android,” Lindsay points out that the existing phone running Android has failed to adequately compete with Apple’s iPhone.  (MediaPost)

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Remerge Note: Will this be Google’s “New Coke” or “Mc DLT?”… I remember reading an article about android when it was first a glimmer in Google’s eye – and Google insisted it was a software company with no interest in getting into the hardware game… I thought that was a pretty level-headed observation and strategy.  It’ll be interesting to see how this one develops…