The phone is unlocked and runs Android 4.0 or "Ice Cream Sandwich." What is notable is the price: $399. At that price point, the unlocked Nexus costs far less than what many higher-end unlocked smartphones go for these days. Here's how it would compare to what consumers would pay on contract: On Verizon and Sprint, the Nexus is $200 with a two-year contract.

The features comes preinstalled on the Nexus with a $10 credit. This allows the user to use the phone itself as a method of payment at participating retail locations. The phone is GSM compatible, which means it will run on either the T-Mobile or the AT&T network. Users worldwide have to wait though, the unlocked version is currently U.S.-only.

"We want to give you a place to purchase Nexus devices that work really well with your digital entertainment," says Andy Rubin, Google's mobile and digital content chief.

This Nexus is essentially the same phone that Verizon and Sprint carry. Google's version includes a 4.65-inch AMOLED screen, HSPA+ data, a 1.2GHz dual-core processor, a 5-megapixel rear-facing camera and a 1.3-megapixel front-facing camera, 1GB of RAM, and 16GB of on-board storage. The generally has received positive reviews, including from PCWorld.

Google's move to sell the Nexus should not be surprising. Back in March, analysts speculated that the Mountain View, California, company its own Android tablet store as well as selling its own branded tablet.