Google Stops Selling Its Own Phone 196
Dave Knott notes that Google has announced it will close its online cell phone store and no longer sell the Nexus One smartphone directly to consumers. "While the global adoption of the Android platform has exceeded our expectations, the web store has not," wrote Andy Rubin, a Google vice president of engineering, on the official company blog. "It's remained a niche channel for early adopters, but it's clear that many customers like a hands-on experience before buying a phone, and they also want a wide range of service plans to chose from." From the Globe and Mail article: "At least one aspect of Google's attempt to disrupt the world of mobile communications — selling phones directly to customers — has failed. ... [T]he decision to design and sell the Nexus One was perhaps more potentially disruptive for carriers. ... Google plans to continue marketing the Nexus One through 'existing retail channels, essentially partnering with carriers around the world. The Nexus One web store, meanwhile, will essentially become a marketing portal 'to showcase a variety of Android phones available globally.'"
It never should have sold one in the first place (Score:5, Insightful)
Qualcomm, Motorola, and others learned this for them already. If you've got something amazing to provide to the cell phone value stream, keep away from competing with those you are helping.
Google never stopped selling it's own phone... (Score:2, Insightful)
If memory serves, Google stopped directly selling HTC's phone that was designed to work on T-Mobile, and is letting the carriers themselves sell it directly. Google is not a hardware manufacturer.
Of course, I am getting old... so maybe it's my senility setting in and my recollection is incorrect. :-)
The carriers have won. (Score:5, Insightful)
People here know the advantages (and a few here probably bought the N1 from Google) but I think that mindset is going to be hard to change without a drastic drop in the initial cost of the hardware.
Re:Nice try (Score:3, Insightful)
Re:While android is leading iphone (Score:5, Insightful)
The cellphone vendors will also be far happier to use Android if Google is not competing with them.
Re:Nice try (Score:3, Insightful)
Re:While android is leading iphone (Score:3, Insightful)
Yes, this is the real reason that Google is stopping sales. The carriers want to feel important. People will still end up using the phone on T-Mobile most of the time, so this will affect few people to any significant degree.
Doesn't surprise me (Score:3, Insightful)
I imagine that they're working on a Nexus Two, so they'll eventually replace it with something else. Hopefully they get the customer service bugs worked out next time around, as that may be one of the potential reasons the device didn't sell as well as I expected it to sell.
Re:Google never stopped selling it's own phone... (Score:4, Insightful)
Google had significant design and engineering input into Nexxus One -- probably not as much as Apple has over iPhone, but still. Many if not most American tech companies outsource their manufacturing. If Google determines the specs and puts its brand on Nexxus One, in many senses that makes it "it's own" phone.
This is why (Score:5, Insightful)
All of my friends and relatives make their purchases at B&M stores because they don't have to wait or pay for shipping, they can physically "preview" their purchase, they can pay in cash instead of a paying with a credit/debit card, and it's far easier to make a return on an item. The only reason I've known them to make an online purchase is for a SIGNIFICANT discount (books, hardware, etc.), though, many B&M stores have become very competitive with online retailers.
NOTE: I am referring to the purchase of physical items in my comment. Most of my friends make software purchases online (i.e. Steam).
Re:The carriers have won. (Score:5, Insightful)
Not limited to Nexus One (Score:3, Insightful)
I've never seen a nexus in the wild.
It's not limited to Nexus One. I haven't seen a Maemo/MeeGo phone in the wild either. Today, to prove a point, I walked into three different local stores and asked to try a Nokia N900 phone. None of them had one. Is this commonplace for geek-friendly phones?
Try before buy (Score:3, Insightful)
You can still buy many Nokia products this way, including the venerable N900.
But where can I try an N900? I walked into three different stores today and none of them had one. Given the price of return shipping and restocking fees, I prefer to try the display, keypad/touch screen, and hand feel of a phone before I spend over $500 for one.
Not a failure in one aspect: Unlocked (Score:4, Insightful)
As a high-profile unlocked phone, the Nexus One has seemed to have had an effect on carriers here in Canada.
Bell, Telus and Rogers have all been friendly about just putting a SIM card into the Nexus One and using it. I don't know if it's been an official policy at these carriers or not, but previously getting an unlocked phone onto anything but prepaid has been a pain, I was often met with resistance at the stores ("Oh no, you can't do that").
Now, even with other unlocked phones, the stores have been a lot more receptive about getting you on their network.
It may not have sold in spectacular numbers and many consumers have no clue it exists, but the reps in the stores know this phone very well.
Re:Nice try (Score:3, Insightful)
my iphone is $70 a month with all my taxes(I have an older plan that i talked the guy into letting me keep, so i just added data)
So you save $10 a month over me, or $240 over two years. I paid $300 for my phone so $540 plus the contract rate.
You saved how much over my iphone? none, zip, zilch. not to mention you didn't taxes onto your rate only the stated price. So we are equal and i got a phone that can actually use AT&T's 3G service and not stuck on dial up speeds of t-mobile.
(note AT&T 3G's service is highly variable then again so is verizon's, and yes I have compared the two we did some wandering tests at my company over 600 sq miles of area In the end AT&T won roughly equal service area and speeds and AT&T came in at 40% less a year in savings.
Re:While android is leading iphone (Score:3, Insightful)
If you buy the phone outright, you pay $50/month, if you buy it subsidized with a 2 year contract it's $80/month.
$80*24 = $1920 Buy phone outright: $529 Buy subsidized phone: $179 So if you spend $350 more now, you save $1920 later for a net gain of $1570.
It's the dirty little secret of the wireless industry. They are subsidizing the phone by loaning you $350 for which you you pay them back over 5 times as much over 2 years. It's usury, and it should be illegal.
Re:Nice try (Score:2, Insightful)
They are sold on contract. That is not a lease. With a lease, the phone company could expect to get something of value back from the customer, not a well used, obsolete phone.
Comment removed (Score:3, Insightful)
Re:The carriers have won. (Score:4, Insightful)
If I ran the country (and I really think I should), carriers would not be allowed to bundle the phones.
Norway has a mobile market that works a lot better than the US, and here are a couple of key reasons why:
Competition is good, but sometimes you need to regulate to ensure a free market.
Re:Nice try (Score:4, Insightful)
Thats because you are looking for a phone.
Nexus One is in the category I like calling "Also a phone".
If you want a phone go look for a Nokia 6120 or something. Mind you 6120 is more than phone too.
With data usage on these mobile devices becoming more and more common, these things are more of an internet tablet with voice capability (vs the other way round).
Re:Nice try (Score:3, Insightful)