Pro: This is intended to help customers avoid being locked-in to a carrier when they purchase a handset. It is an excellent idea, but not something any one vendor wants to do in the U.S market. Why? (Keep reading)

Con: Most U.S. residents buy handsets that are sold inexpensively or even given away. This is possible because a large part of the hardware cost is "hidden" in the monthly cellular service fee.

The unlocked Googlephone will not be carrier-specific, will not get a big subsidy from a carrier, and will seem very expensive to consumers. Especially if the carrier does not rebate the usual subsidy back to the customer in the form of lower monthly charges. I am not holding my breath on that one.

Android is finding some momentum

It is interesting that this rumor appears at the precise moment when Android is getting interesting and Android smartphones are finally hitting the market in decent numbers.