The report does not claim that LG will be the sole manufacturer, but rather LG will be one of the two manufacturers of Nexus handsets this year. What this means is that we could look forward to a 5.7-inch model from Huawei and a smaller 5.2-inch model from LG, thus giving customers the choice of choosing between handsets sizes, kind of like what Apple did with the iPhone 6 and the iPhone 6 Plus.
Interestingly enough it seems to suggest that Google might be aiming for a phone with a more manageable size, especially since last year’s Nexus 6 came with a whopping 6-inch display, so giving users the choice of a 5.7-inch or a 5.2-inch display could encourage more customers who might have felt that the 6-inch display was too much.
In terms of hardware it is unclear if both phones will sport similar hardware with the display being the main differentiator. Unless Google is trying to make one phone a high-end version and the other a low-mid range model. In any case take it with a grain of salt for now, but check back with us at a later date for the details.