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Google Stops Selling Its Own Phone

Posted by kdawson on from the retail-is-hard dept.

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.'"

4 of 196 comments (clear)

  1. It never should have sold one in the first place by dougluce · · 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.

  2. The carriers have won. by jacks+smirking+reven · · Score: 5, Insightful

    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.

    1. Re:The carriers have won. by Nerdfest · · Score: 5, Insightful

      If I ran the country (and I really think I should), carriers would not be allowed to bundle the phones. They can sell them with a monthly payment, but it must be separate from the cost of the plan, and in no way affect it. Bundling phones and locking people into long term plans discourages competition in a huge way. I'd like to see the carriers fighting for my business on a monthly basis, not every 2 or 3 years.

  3. This is why by Gunegune · · Score: 5, Insightful

    "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).