Google facing slowdowns with its online-only model for handset sales?
Bad news today for Google and the Nexus One as investment firm Goldman Sachs has slashed its estimate for Nexus One sales by a third. Predicting a bright and rosy future for the Nexus One, Goldman Sachs originally estimated that Google will sell 3.5 million Nexus Ones in FY2010. After a disappointing first month in which Google only sold a rumored 80,000 handsets, Goldman Sachs has lowered its 2010 estimate to a mere one million handsets which will be sold across multiple carriers including T-Mobile, Verizon Wireless, and Vodafone. Google’s FY2011 outlook will improve to two million handsets if, according to Goldman Sachs, Google rolls out second generation handset, markets it aggressively, and drops its online-only sales model. That last criteria is condemning and suggests that Google’s online-only model needs to be supplemented, if not supplanted, by brick and mortar retail sales. So peer into those magic eight balls that predict the future and let us know — is Google’s online-only sales model fatally flawed or does it just need some time to mature?
While most people commenting on here have valid points, I have only seen one person mention the fact that the Nexus One is a defective phone. The touch screen problems, the 3G/EDGE connectivity issue, and the wi-fi issues are only the tip of the iceberg. GOOGLE refuses to make any comment on when, if ever any of this will be fixed or even if they are trying to fix it. Let the dislikes begin!
Liked.
+11
I don’t know why the Nexus One might be referred to as defective…it seems to working perfectly. Heck, I bought one from some who said it was defective and had issues with 3G. It has been flawless. Plus, I got it REALLY inexpensively!
I do not understand why Google and the big red machine don’t take the N1 and make a real run at the iphone???
When there is a mention of smartphones people think iphone. It should be the iphone and the Nexus One, Google and Verizon have the power to make that happen. I wonder why they don’t???
well i won’t buy it without trying it and i dont know anybody who has one… and i HATE the color
…AND the trackball
The trackball is the only reason I will wait indefinitely for the Desire. Those trackballs suck after a little bit of usage.
i have one, now it is in my house, iphone is i like
……and BY THE WAY those numbers don’t correspond even remotely to the 60,000 units PER DAY they say they’re shipping….
http://www.wired.com/gadgetlab/2010/03/android-developer
http://www.gadgetvenue.com/google-android-phones-60000-day-ship-02172439/
60,000 per day, 5 million plus per quarter
maybe they’re lying
Thats 60,000 android phones being shipped per day, not just N1’s
What can you expect from a beta phone?
Problem is the attitude. Take it, it is good for you. (We don’t do evil, remember?)
With that attitude, it had better be out-of-this-worldly ingenious. No support won’t be a problem, it is so good, who needs support?
Numbers don’t lie. Sigh.
You hit the nail on the head David, the issue is support. Google is notorious for horrible customer service with its AdSense program and it appears that they carried that over to the N1.
Google does not really have any experience selling hardware directly to customers so they did what any cocky full of themselves company did, handle sales in-house.
End result, word got out that if you have any questions about the N1 you are pretty much on your own. I don’t care how good a phone is, if consumers can’t get questions answered (initially FAQ that one might have when making a purchase) the device is doomed.
I do think people like to touch a phone before buying it. What does Google think, that the consumer does not care about seeing a phone before buying? That’s short sighted and narrow minded.
Fact is, the buying public loves to look at a phone. It’s one of those things that people like to do. What, did Google think all those stores (including Apple) have those displays where people can touch and feel to their heart’s content was outdated and/or unnecessary?
When it comes to electronics, especially cell phones, people want to caress, drool and dream over handsets. (If you want proof of this go into a busy carrier store and watch the people go crazy over all the phones. And listen to those people. You won’t hear them asking “So what’s the processor? How much RAM does this have? What Android version is on this phone?”
Nope, these are the same people who will shop for a car and determine it is a great automobile by kicking the tire thereby confirming there is air in it. Oh, they also open the hood and confirm there’s an engine. And they think “Gee, that lettering sure looks nice on that big black plastic cover hiding the engine.”
I hear it was only recently that Google published a help line. That’s too little, too late.
Bottom line: The difficult-to-understand purchasing procedure, the lack of customer support and the inability to touch the phone all killed the N1.
And the last dirt clods on the N1’s grave was the unit having problems. Now word is out that the N1 is a crappy device.
“I hear it was only recently that Google published a help line. That’s too little, too late.”
This is the problem with google. they think they can release a product, say peace out enjoy that shit, and be done.
They did the same with google checkout. They had a credit card/merchant service available and NO CONTACT # FOR THEM IN THE CASE OF A PROBLEM.
Things like this matter. You have to be present to win. If you’re not in stores and have no contact #, your sales may suffer. Imagine that.
They released it on the #4 carrier and at the same time neglected those already on T-Mobile. In effect making it a phone only for those willing to leave their network for T-Mobile. I was a T-Mobile customer and waited for the nexus but was burned by the horrible upgrade path for long time customers. Off to the Droid I went.
Liked.
+5
I will NEVER buy a device that I can’t hold in my hands first. From what I’ve heard the N1 has a lot of problems which doesn’t surprise me because I have a G1 and it has had nothing but problems, mainly with the android platform. On March 24th I will get to hold a HTC HD2 and decide if that’s the phone for me. I sure hope so.
This is a non-story, the analysts misunderstood the point behind the nexus one, its clearly intended for more reasons than just sales such as to showcase features in newer versions of android without the delays incurred by updates needing to be tested by first the hardware maker and then the carrier.
Bob, that sounds plausible for sure, but I find the wisdom in that strategy lacking, mainly because of the damage it does to Google’s reputation.
You say this was done all for the sake of marketing, testing and to have a “free and clear” avenue to send out updates, upgrades and beta whatever. I don’t think so.
Maybe one of the many reasons Google did what it did included what you say, but that’s an odd way to conduct business. I don’t believe it.
For example, scour the Net and the word out on the Nexus One is that it is a POS fraught with problems.
And also people are complaining about lack of support.
The N1 is no different than debuting the Yugo. Soon after the launch of that car word got out that it was something to avoid.
The same is happening to Google’s N1 and I don’t see how they can recover from that.
Besides, I doubt people will appreciate finding out they are marketing tools or beta testers (aka guinea pigs). If Google wanted that from customers they should have either disclosed such or given the phones away.
“For example, scour the Net and the word out on the Nexus One is that it is a POS fraught with problems.”
Funny you could also “scour” the internet and find people complaining about reception and data issues with the Iphone. Tell me have you ever used a Nexus One? I’ve actually found the experience very satisfying.. It’s a top notch device. The ignorant are sad really.
Oh please, don’t make assumptions. For example, the latest is the issue with the N1 not getting 3G and instead being stuck on Edge.
Next time educate yourself before posting with an attitude. You dumb fu#k.
http://www.google.com/search?q=Nexus+one+3g+problems&sourceid=ie7&rls=com.microsoft:en-us:IE-SearchBox&ie=&oe=&rlz=
I didn’t say the Nexus One product line didn’t have any issues. I was simple pointing out that even the Iphone product line (as good as it is) has hardware issues. And swearing only proves my point about your ignorance. Why would you need a smart phone when you work at McDonald’s?
http://www.google.com/search?hl=en&tbo=1&rls=com.microsoft:en-us:IE-SearchBox&tbs=qdr:d&q=iphone+3gs+reception&aq=f&aqi=g9g-m1&aql=&oq=
Here’s some results from a 30 second search SFB. But you are right, I was wrong. You don’t have to “scour” the net to find this stuff, it’s easily found.
These links support my points whereas you provide nothing to support your comment.
http://www.pcworld.com/article/186399/google_faces_deluge_of_nexus_one_complaints.html
http://www.cnn.com/2010/TECH/01/14/wired.google.nexus.one.complaints/index.html
http://www.usatoday.com/tech/wireless/phones/2010-01-12-google-nexus-one_N.htm
http://www.computerworld.com/s/article/9143511/Google_faces_deluge_of_Nexus_One_complaints
http://www.businessinsider.com/google-swamped-by-nexus-one-complaints-2010-1
http://phandroid.com/2010/03/03/nexus-one-multi-touch-severely-flawed/
Great way to sell. I wish people were smart enough to educate their selves on technology. Cell phone shops are for indecisive people who are Co dependant and can’t think on their own. You have to really want the Nexus to order it. I bet the return rate is lower than the iphone’s because of the sales model.
It all comes down to the average consumer. The average consumer is to dumb to you can buy phones online
And It&t is hoping that people will buy there crippled android phones not knowing any better. They should just be an apple outlet and leave everything else alone.
I wish the would sell the desire unlocked with all gsm and 3g bands on it, lower the price a bit. I think that would help the nexus one too.
The problem is that Google wont fix their android OS to support true ActiveSync security features (pin locking, remote wipe, etc) that any respectable company requires in order to use the Droid, N1, or any other Android phone in a Microsoft Exchange environment. There are entire organizations that are being told by their IT department (I work in IT) to not buy a Google phone because they wont be able to connect it to their email system, simply because of this reason. When the iPhone first came out, Apple had this issue. When the Palm devices first came out, they also had this issue. Both had it fixed within 6-8 months. Will Google? They are losing so much business in the corporate world because of this and its not looking like they are going to fix it anytime soon.
Don’t believe me? Read this…
http://code.google.com/p/android/issues/detail?id=4475
Wow! 80k units?!
That’s means half the people on the only US carrier that can get one has one!
Cheap T-Mobile shot.
I think online-only is an idiotic idea for a cell phone. Trashy people love their cell phones, and few are capable of browsing the internets. They need stores to slither into and plop down cash from their drug transactions, robbery hauls, and other such nefarious means of income.
KEV has part of it right, I have been a happy T-mobile customer. It’s time to up date my phone, one of the girls in my office has a G-1 loves it. One of the dealers tell me they are recalling it because of problems, so I look at the My Touch, the key board only works in landscape mode(big fingers) so I hear about the New Nexus 1 and wait for it and can’t get one because I am a current customer, can’t see, touch, or feel it. only order it on line at full price and change the deal I have with T-mobile with no recourse- Not me.
google selling the nexus one online only SUCKS! like honestly, i waited like 3/4 months trying to find a nexus one tht was 300 or lower and nothing! & i refuse to shell out $500+ just to get it.so finally i got tired of waiting & just bought a bold 9700 last week.
& on top of that ! just as “UnHappy Google” mentioned, icant see, touch, or feel the damn phone, so basically it would be taking a shot in the dark.