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Google Stops Selling Its Own Phone
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.'"
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.
But after looking at buying a Nexus One there were 2 primary options. Bend over and pay full price or bend over to T-Mobile and pay their price and lock in. And they only had two plans that were complete shit. I support as many new phones as possible but this wasn't priced well and the plan options they did offer just plain sucked.
Hold up, wait a minute, let me put some pimpin in it
They've got the majority of America buying into the subsidy/contract system. The advantages of dropping $500 upfront on a phone aren't obvious to the layman phone buyer. Not when they get get an iPhone for $199 (despite the savings over time of going off contract).
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.
Google has announced that it will close its online cell phone store and no longer sell the Nexus One smart phone directly to consumers.
This was not called execution. It was called retirement.
"He who can destroy a thing, controls a thing." --Paul Atreides, Dune
Bosh. I paid for my Nexus One outright, and I probably wouldn't have even looked at it if I had to stop in at one of the phone stores. Those places are sleazy.
T-Mobile has month-by-month rates. A little more pricy, sure, but you are able to switch carriers at any time. Works for me.
It's unfortunate that Google is throwing in the towel so quickly. They're spending fortunes on ads, right now, they must have the money to spare. I don't think they've considered what they're doing.
But I do love my Android phone. It could stand minor hardware tweaking. The software resources are phenomenal.
The cellphone vendors will also be far happier to use Android if Google is not competing with them.
I'm not sure which revisionist idiot informed the general OSS/Google fanboy world that selling unlocked phones directly to consumers was somehow innovating. Nokia has been doing this for years. I bought my last Nokia phone, the E70, well before even the iPhone was out directly via Nokia's website. You can still buy many Nokia products this way, including the venerable N900.
The prices may not always be the very best you can find but at least they are a trusted source.
I read the script, and I think it would help my character's motivation if he was on fire. -Bender
Although you could say the same about the iPhone and Apple, since FoxConn manufactures that (and lots of other companies make the various components).
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.
"Brick and Mortar" stores aren't going anywhere anytime soon. While there are many people who make almost all their purchases from online retailers, I find that most people would rather go to a B&M store for a purchase.
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).
Wait, what savings do you get over time from going off contract?
Unlike AT&T, T-Mobile has a discount if you buy your phone up front.
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.