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Google gives up on Nexus One online store, moves to retail

updated 01:20 pm EDT, Fri May 14, 2010

Google admits Nexus One not thriving online-only

Google today signaled a major change in its attitude toward smartphones by dropping its online store for the Nexus One. The company is still keeping its Android flagship but plans to move it to retail stores through carriers and partners, much like it did with Vodafone in April. Online sales will stop once enough Nexus Ones exist in retail, and the site will eventually switch to a showcase for multiple Android phones.

The search firm was happy with the phone itself and claimed that it had spawned "innovation" in subsequent handsets like the Droid Incredible and Evo 4G. However, it admitted that the online store wasn't doing well and that most still preferred the retail environment.

"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," Engineering VP and Android head Andy Rubin said. "And they also want a wide range of service plans to chose from."

The Nexus One was never a strong seller as the sales philosophy and pricing limited its exposure compared to both other Android phones and important rivals like the iPhone. Without the ability to test the phone first-hand and no presence beyond a site that few customers actually knew existed, the Nexus One was limited compared to handsets that had footprints in thousands of retail shops and often had much more widespread marketing. All but T-Mobile and Vodafone customers have also had to pay the full $530 price for an unlocked Nexus One.

Apple's success with the iPhone is partly credited to its experience in retail. It not only has a large retail presence across its own stores, carriers and some third-party retailers, but it has often gone to significant lengths to ensure that there are working demo units and to skip as much of the usual activation process as possible when buying the phone in question.

by MacNN Staff



  1. rvhernandez

    Joined: Dec 1969


    Too much at one time? Lab rats?

    Is Google in over their heads? Too many different projects all at one time? I used to like Google's approach, now it seems like they're the new Microsoft - release a lot of half-baked services and software and see what sticks. Meanwhile, we're the lab rats they're experimenting on...

  1. bleee

    Joined: Dec 1969


    I hope they keep selling it unlocked

    I hope Google keeps selling the unlocked version... more and more phone manufacturers should sell the unlocked version.

  1. Tofino

    Joined: Dec 1969


    customer service

    one of the complaints from customers was the lack of available customer service from google. waiting for your email to be returned within 48 hours is not helpful when your phone is not working.

    dealing with the public is not one of google's strength. rather than building the team and infrastructure necessary for that, google just bailed. seems like a rational business decision to me.

    i don't think google was ever really interested in making this work. they built a reference design, peddled it for a few months and failed (somewhat).

    no big deal.

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