Google CEO: No Nexus Two Coming
When the Nexus One was released by Google, it was a bit different from everything else on the market. It was built to be the very best Android handset available (with a 1 ghz chip, the most recent version of Android, which no one else was running at the time, and more), and was even sold in a new way: direct to customers through the Nexus One website.
There were a few issues with it, but the overall response to the phone was positive (except for the whole "order it direct from Google" thing), and the fact that it was a first generation just whetted people's appetite for what might come in an even more polished version.

Sadly for those whetted appetites, according to Google CEO Eric Schmidt, the Nexus One isn't just the first generation, it's the only generation.
In a fascinating interview with the Telegraph, Schmidt confirmed that Google has no plans for a Nexus Two, saying that the Nexus One was intended to "move the phone platform hardware business forward."
One could argue they succeeded: shortly after the Nexus One hit the streets, a slew of high powered handsets hit the market, some Android-based, some not, but all a huge leap forward from what came before.
Still though, it would have been fun to see what Google could have pulled off in a second generation phone. Then again, maybe there wasn't an opening for another dramatic leap forward, and that's why they declined to jump in. After all, Google likes to make a splash, not a ripple.



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