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Google likes to refer to the Nexus One as a "superphone," but there's nothing super about the sales figure. On the contrary, sales of the Nexus One will probably be around 1-1.2 million during its first year of release. That's a good chunk less than the 2.5-3.5 million units many had originally projected.
Google may have shot itself in the foot in a number of ways, the first of which is offering the Nexus One as an online-only item. That's fine for geeks, but does nothing for the average smartphone owner who prefers to roll old school by walking into an actual store front.
Numerous other factors have held the Nexus One back, including a high unsubsidized price tag, initially limiting the device to T-Mobile, limiting the upgrade pricing to only those on an Individual 500 plan, and implementing their own termination fee in addition to any applicable carrier fees.
The latest announcement from the Google camp is that a second Nexus One model is now being offered, one that is compatible with AT&T's 3G network. But so far only offered at the unsubsidized price of $529, it's difficult to see this move reversing the Nexus One's sales fortunes.
Image Credit: Google
Comments are closed on this article
nduanetesh
March 19, 2010 at 9:27pm
The problem with an article like this is that it seems to assume that Google wanted to sell 3 million phones in the first year. Is there any actual evidence to support that?
The people who run Google tend to be pretty smart, and they generally don't leap into things without testing the waters first (Buzz being the big recent exception). It seems totally in keeping with Google's history for them to want to sell a (relatively) few phones in the beginning, so they can work out the bugs of being a hardware provider, providing tech support (for a piece of hardware) and all of the other associated difficulties. Rather than sell millions of phones up front, and bring upon themselves problems they weren't prepared to handle, they chose a relatively quiet launch (as far as the mainstream is concerned), an unusual distribution model, and a relatively small carrier, to purposely limit initial sales of its first phone. If Google had wanted to sell millions upon millions of phones, we would be seeing ads for the Nexus all over the place--TV, magazines, billboards. We'd hear ads on the radio. But we don't have any of that. The launch may have seemed like a big deal to those of us who are tech geeks, but tons of smartphone users have no idea what a "Nexus One" is, and I can't help but think that was by design.
Zombie30000
March 18, 2010 at 4:16pm
But its too expensive unlocked, or tied to a service not avaliable in my city. Put it on Sprint for $200 with a 2 year contract and I'll get one. And sell it in stores so I can take it somewhere if i have a problem.
Trooper_One
March 18, 2010 at 12:36pm
Guess that didn't work out. Maybe they should rethink their sales tactics. Nexus One is a dud for $500. Swallow the loss and time to rethink its successor.
violian
March 18, 2010 at 10:59am
$500 for a phone is really hard to swallow because it's one of those devices that you know you'll be using for 2 years at most - I don't know, that's just me atleast. Cell phones are literally disposable products - there are so many places with those recycle cans that allows you to just drop off your old phone for recycling. I've never spent more than $200 on a phone - which I do every 2 years when I renew my contract and get subsidization on a new phone. And phones are something that can readily be destroyed, lost, etc, because it's always on the move with you.
Ryan Whitwam
March 18, 2010 at 2:09pm
@violian The $530 price is just for the unsubsidized model. It's only $180 with a two year T-Mobile contract. The pricing on this phone isn't very different than other smartphones.
Tekzel
March 18, 2010 at 11:30am
Well, in all fairness, $500 is probably less than you ultimately pay for those subsidized smartphones from your major carriers. They rape you mercilessly on the service fees and you end up paying WAY more.
As for me, I only use budget pre-paid unlimited carriers. Currently I
use MetroPCS and get nothing but great service. I don't travel, so it
works perfectly for me. My bill is $40 a month, and I get unlimited
everything. I am currently using a flashed Touch Pro, so I
can take good advantage of that unlimited service. Sure, the web isn't
fast, but I don't need fast. My phone only uses the internet to check my
mail, sync contacts/calendar with Google Apps, and back everything else
up to Microsoft MyPhone. I may, once in a blue moon, check the movie
listings on the web, but thats it.How much are you paying, after
taxes, to your carrier?Edit: Damn spam filter wouldn't let me post this, so I decided to experiment a little to find out what it didn't like. I ended up taking out the word S*print in front of Touch Pro up there and it went through. This spam filter couldn't be any more inept.
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You know users... Buncha bitchy little girls.
nekollx
March 18, 2010 at 1:30pm
but i love Sprint.....
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Coming soon to Lulu.com --Tokusatsu Heroes--
Five teenagers, one alien ghost, a robot, and the fate of the world.
Danthrax66
March 18, 2010 at 2:04pm
I use palm pre like a laptop and sprint is by far the best carrier. I've never had a problem with service and they are a lot cheaper than verizon or att when you look at what services you are getting for the price.
