Carrier apathy depresses Google Phone outlook
Carrier apathy depresses Google Phone outlook
Carrier apathy depresses Google Phone outlook
Google is discovering just how dangerous it is artificial fruitsto ruffle the feathers of the major cellcos. Its Nexus One handset may be one of the most advanced on the market and bear the magical brand, but half-hearted marketing efforts by carriers have led to disappointing sales. Now, analysts at Goldman Sachs #xhave slashed their estimates for sales of the phone this year by 70 per cent.
Several operators did lend support to the Nexus launch, despite Google's introduction of a direct-to-consumer sales approach, but there was always a sense that their backing was grudging - and largely based on a fear of losing out, should the phone prove as wildly popular as some analysts predicted.
Their main qualms would have surrounded the route to market. Google offered the device, with a selection of carrier deals, from its own specially created web store. In some ways this was no different to an Amazon approach, but it was widely seen as the thin end of the wedge, in Google's avowed bid to relegate the operators to bitpipe roles and put its own brand center stage. Cellcos will have heaved a sigh of relief that uptake of the Nexus was disappointing in the early stages, and that other handsets with similar capabilities quickly came along - notably the Desire from HTC, which also makes Nexus. Both these options artificial fruitsoffer Android 2.1, gigahertz Snapdragon processors and other attractions, though the Desire has been more acclaimed for its user experience.
In the hype surrounding the launch of Google's first own-branded handset, some pundits predicted that it would sell 3.5m units in its first year. Now Goldman Sachs has cut its forecasts, and wrote in a research note, quoted in ZDnet: "We previously estimated that Google might sell 3.5m Nexus One units in 2010. Initial data points were disappointing, possibly due to limited marketing and customer service challenges. Flurry estimated (based on mobile traffic) that Google sold 20,000 in the first week, and 80,DVD Ripper,000 in the first month, both annualizing to 1m. We forecast that Google sells 1m Nexus One units in FY2010, benefiting from US carriers other than T-Mobile, and non-US carriers#x such as Vodafone, promoting the device too, but artificial fruitssuffering from limited marketing activity."
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