1. Cheap. Samsung wanted to make a slimmer/lighter/cheaper to manufacture phone and decided to lose the microSD port. This device already takes quite a step backwards from the N1 in terms of build quality. This line of thinking by Samsung is essentially the same rationale Palm followed when deciding to ape Apple for their WebOS devices instead of following the BB/Android model of expandable storage.
2.Lazy. See above. Also a very Palm & Apple-like move on Samsung's part. microSDXC is coming soon and will permit capacities up to 2TB. 16GB will be a joke soon as we have more and more immersive 3D games with sizable installs.
3. Greedy. Being sold unlocked with no contract is a major selling point for this device....so Sammy figures that deep-pocketed users on the bleeding edge will buy the refreshed model in 6 months' time running Honeycomb with a dual-core CPU and 32gb storage internally.
4. It's also possible that there is something with security (both pirating apps & the NFC module) but the above $-related reasons are far more likely. As I mentioned on another thread, I am worried what this will do to convince other manufacturers to stop ditching expandable storage in an attempt to iOS-ify Android. Hopefully it'll be an even bigger flop than the N1 was. It could also be a harbinger of an eventual move to "app streaming" all of your bigger apps & games from the cloud when 4G becomes more prevalent. Of course this will consume more data and drive up users' data usage charges...which is precisely what the carriers want to happen.
Even if I was dying for a Nexus S (I'm not) the lack of 32Gb+ storage would be a huge deal-breaker for me. Google & Samsung should have just released a special limited-run unlocked Galaxy S running a vanilla build of Gingerbread and been done with it.
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