The touch-screen phone, which runs the Android operating system, isn't all that revolutionary in technology, but it's a step into new territory for the Web search giant.
But will it prove to be an "iPhone killer"? Will it dethrone the iPhone?
Nexus One's features are comparable to those of the iPhone, CBS News science and technology correspondent Daniel Sieberg observed on "The Early Show." However, features such as an enhanced voice search are what Google is trying to capitalize on, Sieberg said.
"Your mobile device is with you more and more," he said. "You use it for more than just a phone. It's a mini computer in your pocket all the time."
Seiberg compared the warring devices:
Google Nexus One
Price and Carrier(s) $179 with a T-Mobile contract
$529 without a contract (3G access on AT&T)
Hardware 5 MP camera, 7 hour 3G use time, 4 GB flash (up to 32 GB)
Pros: Maps, Searches, noise-cancelling, multiple carriers
Cons: Keyboard, no iTunes
Apple iPhone 3GS
Price and Carrier: $199 w/ AT&T contract
Hardware 3 MP camera, 5 hour 3G use time, 16 GB (or 32 GB)
Pros: iTunes, App Store, computer syncing
Cons: AT&T only carrier
Sieberg said in terms of price you will pay more with the Google Nexus One if you want to go with a carrier other than T-Mobile.
However, the option of an unlocked device, Sieberg said, is a benefit for some people who want to avoid being locked into one company, such as iPhone users who must use AT&T service.
As for the two phones' hardware, Sieberg said, the five megapixel camera with Nexus One is powerful.
"It has a flash," he said. "The iPhone has a three megapixel camera. People have complaints with it."
In addition, the Nexus One has a seven-hour battery, and a program that tells you what you're using with your battery power. Apple's iPhone has a five-hour battery.
As for drawbacks with the Nexus One, Sieberg said the keyboard is "finicky," and there isn't accessibility to iTunes -- just Amazon.com.
"Content can be king for these devices," he said. "You talk about the iPhone -- everyone loves getting music and movies from there. You can get music from Amazon, but not the same thing for a lot of people."
Sieberg predicted the two companies will ultimately be competing over consumers' attention.
"That's where this is going. They want to get mobile ad dollars between these two devices," he said. "They're going at it big time."