Google's Eric Schmidt has shot down the possibility of a Nexus Two in the past, but a new rumor has everyone thinking that the device may actually make it to market after all. According to Android and Me, Samsung will be using their event on November 8th to unveil the Nexus Two. The hardware is said to be made by Samsung, but that's where the company's influence would end, as Google is taking control of the software. Of course, the Nexus Two is expected to be the first device to feature Android 2.3/2.5, aka Gingerbread. There's no word just yet on how the Nexus Two will be distributed here in the U.S., but many think that Best Buy will offer the device because Carphone Warehouse, who is said to be offering the Nexus Two in the U.K., is a 50 percent subsidiary of BBY.
The Nexus One wasn't the huge success that Google had wanted it to be (outside of developers and enthusiasts) for several reasons: the device was absent from brick and mortar stores, meaning no hands-on time for consumers; T-Mobile was the only carrier to offer the N1 with a subsidy; and Verizon and Sprint, who were originally slated to offer the N1, decided not to offer the handset. If Google could get the Nexus Two in the hands of consumers, even if its just a dummy unit at a local Best Buy, I have a feeling that it could be much more successful with the mainstream than its predecessor. Samsung's event is on November 8th, so if you've been looking for a new Android handset, you may want to hold off for another week and a half to see what happens.
UPDATE: Turns out that the Nexus Two is real, and Gizmodo (or, rather, a friend of Gizmodo's) has gotten some face time with it. According to the source, the device is described as feeling "really similar" to a Galaxy S in looks and has a front that is "sort of concave," while the back is a curved affair. The screen is likely the same 4-inch AMOLED display found on the Galaxy S devices found in the U.S., though the Nexus Two will sport a front-facing camera. Finally, the build of Android on the device was said to be stock but "really buggy." The phone you see below is a Gizmodo mockup, but is supposedly "very approximate" to the real thing.
Via Android and Me (1), (2), Gizmodo