Google pulls plug on online sales of rebadged HTC ‘Nexus One’ handsets

invisibleSHIELD case for iPad“Google Inc. said it will stop selling its Nexus One smartphone online and close its Web store as the Internet giant backed away from its effort to reshape the cellphone market by selling handsets directly to customers,” Scott Morrison reports for The Wall Street Journal.

“The Internet company Friday said in a blog post it would instead work with wireless carriers to make the phone available to consumers through existing retail stores,” Morrison reports. “The reversal comes nearly five months after Google broke with convention, saying it would sell Nexus One through its Web store with or without a wireless contract.”

Morrison reports, “The strategy met with lackluster results, including poor handling of customer service and weak sales. Google hasn’t disclosed sales of the Nexus One since it was released in January, but industry executives and analysts say sales have been disappointing.”

“The retreat is the latest blow for Nexus One, which Google was heavily involved in designing and marketing,” Morrison reports. “Recently, Verizon Wireless and Sprint Nextel Corp. said they wouldn’t offer the device to their customers.”

Full article here.

MacDailyNews Take: And there you have it: Fake iPhones don’t sell online.

“Google phone Nexus One, whose launch is one of the most-awaited ones in 2010, boasts of tech specs that make iPhone look like a wimp… Wow! Other smartphones, especially iPhone, better watch out for Nexus One because it looks like one nasty, hungry beast on the prowl. Besides, we all hate blood spills.” – Nick Brown, IBTimes, December 30, 2009

We don’t. Bloodbath.

[Thanks to MacDailyNews Reader “Mac User since 1984” for the heads up.]

35 Comments

  1. <strike>LG Voyager, HTC Touch, BlackBerry Bold, Samsung Omnia, Sony Ericsson Xperia, BlackBerry Storm, Palm Pre, BlackBerry Storm 2, Motorola Droid, Google’s rebadged HTC Nexus One…</strike>

  2. “disappointing”? Only for the clueless.

    Google can give their Nexus One inventory to their employee’s as part of this years bonus.

  3. “Recently, Verizon Wireless and Sprint Nextel Corp. said they wouldn’t offer the device to their customers.”

    OUCH!!! Kinda makes the decision to pull the plug a lot easier.

  4. Actually, the real problem is Google has zero experience in retail. They thought this would be a walk in the park; sell a boatload of phones and watch the money roll in.

    Selling anything cuts across the bias of their business model. I have no doubt whatsoever, people tried to talk Google out of retail till they were blue in the face.

    A hard lesson learned, and costly too. It’s a step in the right direction and it may even relieve some of the fragmentation of the Android platform.

  5. Yet another failed Google attempt at a non-seach business.

    Dealing directly with consumers is not so easy, eh?

    Apple was smart enough to hire experienced retail executives right from the beginning, starting with Ron Johnson. The trick is, unlike management at a lot of places, they actually listened to the person they hired to do the job.

    Google could have made this work, if they were willing to really invest in the infrastructure (call centers, employees, GOOD training for same). The boys at Google seem to have a bit of ADD though, and I don’t think they had the focus to execute this right.

  6. Google is obviously having problems making a profit from “open-source” Android. Hardware makers who create Android-based phones may make a profit. Therefore, to justify the development of Android, Google had to also get into the hardware business.

    Since Nexus One (and only) is failing, the justification for continued Android development got a lot weaker. This Verizon-Google tablet will be another example. Google has to sell the Android hardware to make any significant profit from Android. But Google is not set up to be a hardware company. And making the attempt will just alienate its Android hardware partners. Ultimately, if Google does not see a way to profit from Android, they will lose interest in continued Android development.

  7. It seems like fragmentation is just a natural by-product of the cel service provider environment. With the OS available for any phone that wishes to use it, and the huge variety of different feature sets of each phone, times by the number of features each vendor will allow from each phone at each price point, minus the number of features each carrier will disallow from each phone at each price point……………..

    Kinda mind bogglingly confusing. Easy to see why there is so much fragmentation. Like Windows and its 53 different variants of the OS. Home user limited, home user basic limited, home user basic, home user basic plus, home user basic deluxe, home user basic platinum, home user basic premium, ad upchuckium

    Apple otoh, 1 OS, (computer or phone, or pad) fully featured for the device.

  8. Might as well – can’t hack it, cut and run. Nothing but a pathetic attempt trying to recoup some of the millions sunk into droid purchase and improvement. Remember droid is a losing business proposition for Google, which get nothing from droid sales while spending millions on the code. Of course, the poor excuse is Google will hopefully recover the investment from ads revenue on droid phones some day. They have used the same excuse on just about all of their acquisitions and are unable to show any quantifiable results that they have made a dime from them. Expect the same from droid.

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