In a blog post published today, Google accepts that its web store and thus Nexus One sales has underperformed! Now well that’s something to talk about. The decision comes after multiple carriers dropped the Nexus One from their line-ups, including Verizon Wireless.
Google commented saying, “But, as with every innovation, some parts worked better than others. While the global adoption of the Android platform has exceeded our expectations, the web store has not. 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 [sic] from.”
What next for Google?
Due to the failure of the web store, Google is making two major changes to its Nexus One and Android strategy.
- It will be making the Nexus One more available to retailers.
- It will ultimately cease selling the Nexus One online, opting instead for an online store window.
Despite the spin, today’s announcement can’t be considered anything less than an admission of failure. People weren’t willing to buy a phone they couldn’t play with first, and Nexus One sales suffered consequently. Apple must be jumping for joy right now.
But what made this happen?
Before the Nexus One launched, analysts wondered if Google would shock the wireless world by subsidizing smartphones on its own. Instead of owing two years to a specific carrier, your debt would be to Google and its advertising. But when Google announced a $529 unsubsidized price for the Nexus One, or $179 with a two-year T-Mobile contract, it was business as usual. Still, some said that the Web store made all the difference. By giving customers the option of a subsidized phone on contract with T-Mobile or an unsubsidized phone that could be used for any duration, or swapped for AT&T’s 2G network, Google was slowly taking control from the carriers. Android was equally responsible itself. Those who called the Nexus One an evolutionary product were spot-on, as the phone has already been upstaged by the Droid Incredible, and soon the HTC Evo 4G. Verizon Wireless and Sprint stopped itching to carry the Nexus One once they had their own cutting-edge Android phones. And as Google learned, support from wireless companies is really important if you want to sell phones. Verizon’s advertising prowess thrust Droid into the spotlight, and the carrier’s two-for-one deals propelled Android to its first quarterly sales victory over the iPhone.
However, Google’s Android creator Andy Rubin analyse this situation in a positive way stating, “Innovation requires constant iteration. We believe that the changes we’re announcing today will help get more phones to more people quicker, which is good for the entire Android ecosystem: users, partners and also Google.”
Tags: 2g network, amp, early adopters, global adoption, line ups, nexus, niche, smartphones, ups, verizon, web store, wireless google