Android
The Nexus One is not a “flop”, it is an experiment [OPINION]
March 16, 2010 | by Chris Smith
Google Android, HTC-Nexus One
![The Nexus One is not a “flop”, it is an experiment [OPINION]](http://androinica.com/wp-content/themes/androi/thumb.php?src=/wp-content/uploads/2010/02/nexus-one.jpg&w=235&h=235&zc=1&q=91)
A post today on Silicon Alley Insider says that the Google Nexus One has been on sale for 74 days and has only sold 135,000 units. They make the comparison to the Motorola DROID and iPhone sales of their first 74 days showing that both sold around 1 million units. According to these numbers the conclusion is that the Nexus One is a “flop”. Although sales of the N1 are “disappointing”, I wouldn’t consider the N1 a flop but more of a sales model experiment; one that will eventually save consumers money.
Google introduced the the N1 as a “carrier agnostic” device that could be purchased out of contract, a sales model that is totally different to what Americans are used to. Americans are used to purchasing phones that are heavily discounted with a new contract at one of the four US carriers. Google’s idea is to offer the phone unsubsidized and let the consumer choose the carrier that they want. By not having to sign a contract for a certain term, consumers can have more control over what carrier they choose and therefore what price they will pay for their service. The major problem that this sales strategy faced was that the N1 was initially available for only one network in the US, T Mobile. Not to mention the shock factor consumers faced on the high price of the N1 that they would probably pay $199.99 for under contract.
I believe that the N1 is not an “iPhone killer” like many bloggers and media outlets tried to shove down our throats. It doesn’t have to be. Instead, the N1 and the way that it is being sold is more of a “contract killer”, something that is very much needed in the US to create more value for consumers and as well as real cell phone plan price competition. If Google continues this sales model with more phones in the future and consumers catch on to the freedom and potential cost savings of not signing a contract with carriers, the cell networks will be forced to lower out-of-contract pricing to lure these consumers. Doesn’t sound like a flop to me.
Another reason that this experiment isn't working is that, even though the phone comes contract free, only T-Mobile has contract free plans (that work with Smartphones) in the US. It would definitely make no sense to pay full price for a phone then get a 2yr contract plan that assumes you are paying towards a phone.
Actually the problem lies in the fact that since it was only through TMobile they restricted the plan you can use. Making buying the phone outright pointless. Yes you have no contract but the plan to use the phone is expensive making it horrible. But as Verizon and At&t come on board the carriers will have no choice but to compete and offer good deals because the consumer will have choices. Its actually funny how carriers know that have cornered and take advantage of you. I will bet you a nexus one that come a couple of weeks you will see the major carriers offering some sick airtime and data deals to get new Google customers. Now the advantage will be on our side but not until all the carriers are in play.
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Not to mention the problems with buying the phone for people already undercontract with tmobile. If you read all the forums its alost impossible to get a hold of a google rep if you have issues when ordering and of course tmobile is no help either.
Come to sell here in Brazil! Here we like free undercontract phones!
I agree 100% that the Nexus is an "experiment" rather than a "flop", and it annoys me every time I read an article saying that Nexus sales have been disappointing. Disappointing to whom?
All of these articles presuppose that Google had some expectations of selling millions of phones in the first few months, and I've seen no actual evidence to back up that assertion. The fact that Google did absolutely no mainstream advertising for the Nexus seems to imply just the opposite–they wanted their first phone launch to be relatively small. Google is a company with no experience selling cell phones (or offering technical support for them), and in the same way that they will frequently roll out new Gmail features to small groups of users at a time, it seems to make sense that they wanted to sell a few cell phones to get a feel for what it's like to be a hardware provider. If they had pushed the N1 the way Verizon has the Droid, or even the way Google has Chrome, the sales numbers would undoubtedly be much higher by now, and Google would have three or four times as many phones out there as they currently do, and they'd have to provide support for all of them. It's a very Google business decision for them to start small on their first outing.
Google's strategy is practical and we in India already tasted foods that come from such competition between network providers. I pay just INR 0.50 per minute of call I make. That means just $1 for 90 minutes approx. And Google's strategy is perfectly in line to free consumers from dependency on carrier's. My verdict, Consumers benefit a hell lot in the long Run.
Okay, personally, I really wanna purchase NEXUS ONE – Damn the iPhone which is locked to carriers, even here like the some ages old blackberry phone – but the thing is has not been launched in India till date. Really want one as soon as it can get!
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The Nexus One is a flop for sure. Google wanted to create a "Carrier Agnostic" device? The T-Mobile version only works with T-Mobile's 3G, that's why there's now an AT&T version. OH, and it doesn't work at all for Verizon or Sprint, which is why we will have two more versions for those carriers. So basically you are paying an undiscounted price for a phone that can only really be fully utilized on one carrier anyway. Epic Fail on Google's part.
You don't bring out the best Android phone on the market and then declare it a test. This was supposed to be a "SUPERPHONE". This was Google's showpiece. Instead it's almost embarrasing. And Google has not really been very responsive to it's customers and/or potential customers.
You'd think by now they'd figure out that they needed to get it in stores. You'd think they'd figure out that it needs to be discounted to (gasp) family plan customers. You'd think they'd figure out they need live pre-sales support (hell, even web chat support on the Google.com/Phone site).
135,000 units in 74 days = EPIC FAIL no matter how you look at it. I predict the HD2 will outsell the N1 in the first month, LOL.
Great reading, thank you
There comes a time when a man got to do what he is supposed to do. Make sure that he is always on his cell phone whenever there are confrontations between him and his spouse.
That was the great news for the iphone brand…. it made a history in sales.. and I hope there is no competition for iphone..
Google really failed on this one, I am afraid to say. I was expecting the best phone to ever be released, instead we got this mediocre phone, with huge limitations.
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