Print 34 comment(s) - last by MojoMan.. on May 17 at 8:59 AM

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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How about these problems?
By Fox5 on 5/14/2010 11:23:38 PM , Rating: 2
1. The phone wasn't available for upgrades on a family plan, only individual plans.

2. It was sold ONLY through the Google website. Even those that don't care about the 'in-store experience' would probably still prefer to go through tmobile's store for their upgrades.

3. Very few people buy unsubsidized phones, especially when you'll receive little support for it. Still, with all the people running jailbroken iphones, it shouldn't be that big of a problem, but the idea is pretty foreign to the market. Most of the people I told I bought an unsubsidized phone thought I was crazy for spending so much, and couldn't really grasp my claims that it's cheaper in the long run thanks to not having to get the smart phone data plan, or any data plan if I so choose, plus tmobile's cheaper plan pricing for unsubsidized phones.

4. There were some sketchy problems with refunds and pricing early on. Also, a lack of support from google and tmobile gave it a bad rep.

5. Hardware problems (poor reception, slightly blurry screen, high failure rate, poor touch screen) were well known early on. They'd probably had been acceptable, had there not already been comparable phones with less problems (droid, iphone) and better phones launched soon afterwards.

RE: How about these problems?
By Fox5 on 5/14/2010 11:25:29 PM , Rating: 2
Oh and 6 and 7:
6. Google's store website's minimalistic look comes off as sketchy.

7. For what google was trying to do, there's no reason they shouldn't have launched with 1 phone supporting at least tmobile and att, and preferably all 4 major carriers. If not that, then at least 1 GSM version and 1 CDMA version, launched simultaneously.

RE: How about these problems?
By Lazarus Dark on 5/16/2010 2:48:26 AM , Rating: 2
8. everyone I know is abandoning att in droves. Anyone getting a high end phone is going Verizon and anyone I know looking for the cheapest phone possible is getting those pay-per-minute phones. I might have considered the nexus if it was available for Verizon.

RE: How about these problems?
By Alexstarfire on 5/15/2010 9:13:45 AM , Rating: 2
I never heard of hardware problems with the Nexus One.

RE: How about these problems?
By theapparition on 5/15/2010 9:24:46 AM , Rating: 2
Do a little more reading.

The 3G reception under Tmobile was infamous.

RE: How about these problems?
By Alexstarfire on 5/15/2010 1:31:55 PM , Rating: 2
One carrier does not equal hardware problems.

"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs

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