Recently, it was reported that demand for the Nexus One (Google’s version of the Android phone) lagged significantly behind that of the Motorola Droid and the iPhone. Approximately 135,000 Nexus One units were sold during the first 74 days since the product launched compared to 1.05 million Motorola Droid and 1 million iPhone units.
A comparison of these sales figures has some questioning whether there was much demand for the Nexus One phone or more broadly the Nexus One ideology (unlocked, open source). At first glance, one could attribute the difference to marketing (web only vs. media blitz) and/ or distribution strategy (in-store, online, kiosk, etc. versus web only) but in my opinion, these figures are not comparable for one key reason and that’s business strategy.
Google made it clear prior to the launch of the Nexus One handset that Google would be happy if they sold 120,000 units in 2010. So in Google’s eyes, the Nexus One offering was a success. But why would Google shoot only for such a small percentage of the 2010 smart phone sales (especially since the Nexus One has arguably the best all in inclusive hardware offering)? My guess is because Google is studying the mechanics of the cell phone industry, customer needs and behavior, distribution, on-line sales support, and building an effective infrastructure to accommodate all of these things.
Verizon (Motorola Droid) and AT&T (iPhone) already have vast amounts of experience supporting the cell phone industry (or lack thereof). Why would Google take a chance on blitzing the media with Nexus One advertising and risk not having an effective infrastructure to support the product offering (especially since the Nexus One was their first product offering in this type of capacity). Google has multiple handsets out in the wild already which run the Android Operating System but Google does not provide or supply end user support, distribution, or in broader terms take complete ownership over the product offering. My guess is that Google “quietly” released the Nexus One as a means to learn about their new role and once they were comfortable (learned from their mistakes) and concluded what they built was scalable, then go ahead with an aggressive marketing campaign and release the device on multiple carriers both domestic and foreign.
Remember that T-mobile is the smallest of the four primary cell phone carriers in the U.S. Google needs an unbiased test group (dog fooding only goes so far) to use for feedback. Why risk upsetting 500,000 hand set owners tripping over your own feet on say Verizon when Google can limit the collateral damage to 135,000 by launching on T-mobile.
With this said, Google has released or announced the release of the Nexus One on other carriers over the last couple of weeks. At the same time, I have seen a much more aggressive web based advertising campaign. My guess is that Google has reached their comfort zone and is now ready to wage war against other smart phone devices.
Customer satisfaction is as much an art as it is a science. The question now is, has Google acquired enough talented artists and provided them with the appropriate canvas to express their artistic abilities? My guess is we’ll see over the next 12 months.
Great analysis and I buy it. Makes sense for Google to do their homework before jumping of into the deep end. I look forward to more “Google” phones
Great analysis and I buy it. Makes sense for Google to do their homework before jumping of into the deep end. I look forward to more “Google” phones
My Newus One is clearly the best phone I have ever owned. I am in awe of this technology.
It may have one or two minor shortcomings but none of these bother me enough to want any other phone. Sleek in design, easy on the hand and beautiful to the eye Google has sold me a classic piece of electronics from that amazing company, HTC. Cudos to both companies for simply inspired design.
My Newus One is clearly the best phone I have ever owned. I am in awe of this technology.
It may have one or two minor shortcomings but none of these bother me enough to want any other phone. Sleek in design, easy on the hand and beautiful to the eye Google has sold me a classic piece of electronics from that amazing company, HTC. Cudos to both companies for simply inspired design.
I personally dont have a N1 but here is why… I have a MT3G and T-mobile wont let you have a N1 on a family plan. We currently have 6 people on my plan (of 12) that would upgrade if we could get one for 200$ and keep our plan. I suspect as soon as they open that up that it will be a blitz.m
I personally dont have a N1 but here is why… I have a MT3G and T-mobile wont let you have a N1 on a family plan. We currently have 6 people on my plan (of 12) that would upgrade if we could get one for 200$ and keep our plan. I suspect as soon as they open that up that it will be a blitz.m
Learn I don’t think so. There are a lot of proven ways to release a phone. A good example will be the G1. Google saying they would be happy to sell 120,000. What a lame excuse. New phones is a billion dollar industry and to be happy with 120,000 only means they are not ready to be selling phones and the services we got upon the release prove that. Google please let the real people selling/supporting phones sell your phones they are good at it and your not.
Yes. There are many ways to release a phone but this article focuses on building an effective infrastructure to support phone launches. How many of those proven track records are there?
Learn I don’t think so. There are a lot of proven ways to release a phone. A good example will be the G1. Google saying they would be happy to sell 120,000. What a lame excuse. New phones is a billion dollar industry and to be happy with 120,000 only means they are not ready to be selling phones and the services we got upon the release prove that. Google please let the real people selling/supporting phones sell your phones they are good at it and your not.
Yes. There are many ways to release a phone but this article focuses on building an effective infrastructure to support phone launches. How many of those proven track records are there?
I have read other speculations that Google didn’t want to compete with the same companies that are pushing Android forward, but wanted to encourage these companies to produce higher quality phones, such as their n1. Google makes their money with ads, do you think they will continue to sell phones in the future?
Great question Evan! Two primary reasons why Google released the Nexus One:
1 Choices – Right now 99% of all the handsets are locked to a single carrier (post purchase unlocking aside). So if I want the iphone, I have to use AT&T. But if I want the Nexus One, I have four carriers to choose from.
Google is trying to redefine the market to eliminate handset exclusivity sgreements with carriers and where possible, make a handset that you can take with you to other carriers.
2. Raise the bar in terms of hardware development standards. But as of today, the Nexus One became inferior to the HTC Supersonic so the bar has now been raised even higher.
Would the bar now be this high if the Nexus One was introduced, i’d like to think not.
well….on tmobile i dont think they sold as many because of the crap upgrade…….i want an N1….3 lines on my family plan and now that they dont offer myfaves theyre trying to push people off of the old plans onto the new ones…..and im not coughing up 500 for that phone….ill wait for something with a hardware keyboard comes out……and a better camera…..
once they get on the other carriers theyll sell way more…..and if they fix their crap no upgrade for family plans theyd also get more…..
I have read other speculations that Google didn’t want to compete with the same companies that are pushing Android forward, but wanted to encourage these companies to produce higher quality phones, such as their n1. Google makes their money with ads, do you think they will continue to sell phones in the future?
Great question Evan! Two primary reasons why Google released the Nexus One:
1 Choices – Right now 99% of all the handsets are locked to a single carrier (post purchase unlocking aside). So if I want the iphone, I have to use AT&T. But if I want the Nexus One, I have four carriers to choose from.
Google is trying to redefine the market to eliminate handset exclusivity sgreements with carriers and where possible, make a handset that you can take with you to other carriers.
2. Raise the bar in terms of hardware development standards. But as of today, the Nexus One became inferior to the HTC Supersonic so the bar has now been raised even higher.
Would the bar now be this high if the Nexus One was introduced, i’d like to think not.
well….on tmobile i dont think they sold as many because of the crap upgrade…….i want an N1….3 lines on my family plan and now that they dont offer myfaves theyre trying to push people off of the old plans onto the new ones…..and im not coughing up 500 for that phone….ill wait for something with a hardware keyboard comes out……and a better camera…..
once they get on the other carriers theyll sell way more…..and if they fix their crap no upgrade for family plans theyd also get more…..
its amazing everyone feels the same way here. just like everybody i will go and buy the phone even though its 500 somthing but the only thing thats stoping me is the plan they offer it with. i won’t mind paying the money its just that i don’t want to change my plan because i like my plan. so i think google is doing the wrong thing buy leting its costumers down with this strictions. i am a loyal android guy and i still have a g1 the reason i stick with the g1 is i like the coustmization i can do thanx to all this developers. am curently running 2.1 on my g1 but i badlly want a N1.
its amazing everyone feels the same way here. just like everybody i will go and buy the phone even though its 500 somthing but the only thing thats stoping me is the plan they offer it with. i won’t mind paying the money its just that i don’t want to change my plan because i like my plan. so i think google is doing the wrong thing buy leting its costumers down with this strictions. i am a loyal android guy and i still have a g1 the reason i stick with the g1 is i like the coustmization i can do thanx to all this developers. am curently running 2.1 on my g1 but i badlly want a N1.
its amazing everyone feels the same way here. just like everybody i will go and buy the phone even though its 500 somthing but the only thing thats stoping me is the plan they offer it with. i won’t mind paying the money its just that i don’t want to change my plan because i like my plan. so i think google is doing the wrong thing buy leting its costumers down with this strictions. i am a loyal android guy and i still have a g1 the reason i stick with the g1 is i like the coustmization i can do thanx to all this developers. am curently running 2.1 on my g1 but i badlly want a N1. please google do somthing
its amazing everyone feels the same way here. just like everybody i will go and buy the phone even though its 500 somthing but the only thing thats stoping me is the plan they offer it with. i won’t mind paying the money its just that i don’t want to change my plan because i like my plan. so i think google is doing the wrong thing buy leting its costumers down with this strictions. i am a loyal android guy and i still have a g1 the reason i stick with the g1 is i like the coustmization i can do thanx to all this developers. am curently running 2.1 on my g1 but i badlly want a N1. please google do somthing
Seth
I have a n1 and on a family plan
how did you get that. did you buy the phone by itself
Seth
I have a n1 and on a family plan
how did you get that. did you buy the phone by itself
[...] canvas to express their artistic abilities? My guess is we’ll see over the next 12 months.Source Androidspin.comPage 1 of 3 | Next pageRelated posts:Sales forecast cut for Google’s Nexus OneNexus One sales [...]