Samsung and Google have been working closely together to develop the “Nexus 2.†The device earned the name because it will have a clean install of Android, which is exactly what the Nexus One had when it was released. The launch of the “Nexus 2†was suppose to flow smoothly with the launch of Android 2.3 Gingerbread.
According to Tech Crunch, the Samsung event that is being held Monday is not about the launch of this device, but yet another Android device that Samsung has been working on. The “Nexus 2†was rumored to launch on November the 11th, which was also the rumored launch date of Gingerbread.
Unfortunately, according to the source, this device has been plagued with major hardware issues. It is unknown what the issues are, but until they are fixed this device will not be released. No word on how long it will take to fix the hardware issue.
Source  TechCrunch