Google Nexus One sales proving to be a bit of a flunk

Wed 10 Mar 2010 3 Comments

google nexus one smarphoneFollowing our report in early February Google had sold just 80,000 of its Nexus One handsets after one month on the market, sales predictions for the first year of sale have fallen again.

When it first launched hype surrounding the availability of Google's own handset lead analysts to believe it would be able to shift approximately 3.5m devices within its first year of sale. However, following competitive marketing from the likes of the HTC Desire it's been revealed investment bank Goldman Sachs has had to drastically reduce its estimates.

In a report by ZDNet the bank revealed it had been disappointed with poor sales and blamed "limited marketing" and "customer service challenges" as having a factor on its questionable retail success. Using mobile traffic as a gauge it estimated Google sold 20,000 of the handsets with the first week of sale and 80,000 in the first month, accounting for predictive annual sales of one million. Google's decision to only offer the Nexus One online may have played a part in the phone's struggle to make a splash in the mobile market.

Google's phone range is expected to expand as other phone companies such as Motorola join forces to create devices. However, predictions are still struggling to top more than two million phone sales per year.

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Comments

  • neutral

    by ThaNatrix at 16:22 on 10 Mar 2010Report abuse

    The problem with Nexus One sales is the extreme unsubsidized price for the phone coupled with the stranglehold they have on Tmobile, allowing only users of one specific plan to get the initial discount. Admittedly they're at a loss lowering the price considering Apple makes iPhone dough whether or not the phones are purchased through ATT via the appstore. Find a way to appeal to people's pockets after they already have the phone, lower the phone price, sales increase, life is good.

  • happy

    by Hayt at 21:21 on 10 Mar 2010Report abuse

    What do you think about this idea: Google has no interest in becoming the biggest smartphone seller in the world - they just felt a need to demonstrate the potential of the android platform.

    The only thing that's disappointing are the poor predictions of Goldman Sachs...

  • neutral

    by Ryan at 03:52 on 11 Mar 2010Report abuse

    What will be really interesting is to see what happens to the sale when they release on the US carrier with the most subscribers. I currently own the iPhone, and would love to get off the Apple bandwagon. Not to mention I am seeking an Android phone so I can develop games/software for it. I have been waiting for the best opportunity to jump on the Android bandwagon, and the N1 seemed like it would be the one. When I heard it was on Tmobile though... could not justify it. Right now I am on the second most populated carrier, and the objective was to move forward - not backward.

    The online ordering is a new idea, and it will take time for people to become used to it. That does not mean it is a bad idea. Not all good ideas start off great. I am personally psyched to order my N1 for Verizon... any day now!

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