Nexus One Sales Off to a Slow Start


There's one thing Google's Nexus One has in common with every other Android-powered smartphone: it's no iPhone killer. Sure, we could try to sugar coat it, but it's hard to see too much positive in a disappointing first month of sales in which there were only about 80,000 Nexus One units sold . By contrast, Apple sold eight times as many iPhones when the iPhone first debuted.

But the iPhone isn't the only measuring stick. Motorola's Droid, which is also an Android-device, sold about 525,000 units during its first month, according to analytics group Flurry Inc.

"What the Nexus One is really about is a new way of buying a phone," said Chief Executive Eric Schmidt in a recent conference call. "The Nexus One is simply the first of a series of examples where you can essentially purchase a phone online from one or multiple manufacturers and have it just work. We think that's a natural evolution of a particular model."

The problem with Schmidt's statement is the Nexus One didn't "just work" and instead made headlines because of 3G connectivity problems. And then there's Google's termination fees and the $529 asking price sans wireless plan. Existing T-Mobile subscribers can pick one up for far less ($179), but only if they're on an individual plan - those on a family plan aren't eligible for the reduced rate.

So where does that leave the Nexus One? In a tough spot, really. The sales numbers aren't anywhere near where Google would have liked, and that isn't likely to suddenly change anytime soon.

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