Nexus program is a Google partnership formed with several companies aimed at creating phones and tablets that deliver a "pure" Android experience. According to recent reports however, Google may be planning to take things to the next level and may be working on creating their own hardware.
According to The Telegraph, Google is working closely with mobile operators with plans on releasing a Google-branded phone that, unlike the Nexus program, will be entirely developed internally allowing Google more control over the "design, manufacturing and software" of the devices. As of right now Apple is the only mainstream manufacture that has such control, which allows them more consistency in their user experience. Something that Google and Android has struggled with over the years.
The move to developing their own hardware comes at a time when Google has been working to expand their reach in the mobile segment. Earlier this year the company started expansion of their own wireless cellular service Project Fi. A program that offers users a low cast pre-pay service with no contracts utilize cell towers rented from Sprint and T-Mobile.
The new device, will reportedly be released by the end of the year, and while it is unclear if any carriers are actually looking at carrying the device or what sort of specs we might see, it is clear that by taking control over their own device development Google wants to yet gain shake up the mobile industry.