[zenlinux]

Google has a lot more at stake than just profits from this particular phone. They are interested in establishing the Android platform as a major player on smart phone devices, and are coming into the game with a pretty weak position given Apple's current dominance. To be able to make headway into the market they need every advantage they can get, and neutralizing Nokia's N900 offering would help prevent another player from complicating the market for them.

Not to mention at that price they'd be dealing Apple a major blow. I figure they have the cash, why not use it for something like this. I admit this is all idle speculation on my part, and that Google may or may not have a lot at stake in the success of Andriod.