Google also may be struggling because of the amount of time that it takes some operators to approve new phones and for versions of the phones to be made to work on different networks. Such timing issues could be behind Sprint's change of heart. With the impending release of the EVO, which is superior to the Nexus One in many ways and runs on a faster network, Sprint may have lost interest in the Nexus One.

Google did not reply to a request for comment about how its phone sales strategy might change with Sprint's decision.