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Google admits that its Nexus One is a bit of a failure, so it's revamping its sales strategy.
Google's favored Android child isn't living up to its potential

Google's Nexus One looked to follow in the success of Motorola's Droid (Milestone) Android smartphone.  It brought slightly improved hardware (courtesy of hardware partner HTC), special software attention from Google, and the possibility of picking from a variety of carriers.

Sales of the Nexus One were conducted exclusively through a new web store – and sales weren't very good.  In fact, Google as of March was estimated to have moved a mere 135,000 units in the three months since its January launch.

Now, as potentially superior competitors like the HTC Incredible (Verizon) and HTC EVO 4G (Sprint) storm the market, Google admits that choosing to sell the phone online was a mistake.  In a blog post, Google writes:

But, as with every innovation, some parts worked better than others. While the global adoption of the Android platform has exceeded our expectations, the web store has not. It’s remained a niche channel for early adopters, but it’s clear that many customers like a hands-on experience before buying a phone, and they also want a wide range of service plans to chose from. 

Google says that as a result of this realization, it will be phasing out the web store and trying to get retailers to sell the phone, which is currently available for AT&T and T-Mobile in the U.S.

Sprint announced on May 10 that it would not be carrying the Nexus One, despite earlier announcements that it 
would be carrying the device.  Along with Verizon's announcement that the phone is not coming to its network, it looks like the possibility of a CDMA Nexus One release may be dead.

No retailers have been announced yet, but likely candidates include Best Buy and Walmart.  Walmart back in January accidentally posted the phone on their site, but then stated that they had no plans to sell it.  

Despite the Nexus One's disappointing sales, the phone does have some fans.  Linux founder Linus Torvalds loves the phone and says that its the first smartphone he finds to be tolerable.  Hardware-wise it might not be 
the best, but it's still one of the best Android handsets on the market.

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RE: It doesn't have a keyboard
By corduroygt on 5/14/2010 3:15:45 PM , Rating: 5
That doesn't explain the lack of sales

iphone and many android phones are selling well without a physical keyboard.

RE: It doesn't have a keyboard
By Bateluer on 5/14/2010 11:49:50 PM , Rating: 2
The N1 didn't have any kind of real marketing push, the way Verizon has pushed their Droid line up and Apple advertised the iPhone. Comparatively, the N1 barely had a peep.

I'm not opposed to Google making their 'own' phones, but I think the develop of the Android OS should be their priority.

But yes, any smart phone I buy must include a real keyboard. So hopefully, in 15 months when the time comes to replace my Moto Droid, I'll have some options.

RE: It doesn't have a keyboard
By seamonkey79 on 5/15/2010 9:20:24 AM , Rating: 2
If the Droid's keyboard wasn't a pile of pooh, I'd agree with you. I had an Eris and tested the Droid and found that the Eris was easier to type on (even with the input lag) than the Droid's keyboard was, because that flat grid layout is a joke.

That being said, I know two people who have Droid's. One uses the keyboard exclusively and can't use the onscreen worth squat, the other was wondering why they bothered putting the physical with the phone when the onscreen was so much nicer to use. Father and son, respectively. So, matters of preference, I suppose :-)

RE: It doesn't have a keyboard
By Bateluer on 5/16/2010 10:03:33 PM , Rating: 2
Keep in mind that there are two types of keyboards out there for the Moto Droids. One is completely flat, the other has keys with a slight bevel. Mine has the bevels, as does one of my friends. I also know two people who bought in the last month that have completely flat keys.

It took a little getting used to, coming from my Env2, but I'd wager I can type faster with the real keyboard on my Droid than anyone can with on screen keyboard.

"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer

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