Google is trying out a different method of getting the cell phone into the user’s hands. Direct sales. They began this method Jan 5th, 2010 with the announcement and release of the Nexus One, which can only be purchased directly through Google via a website. The phone comes “unlocked” as it is not directly tied to any service provider and the user can purchase it outright without a contract. However, we know that the hardware is setup only for 3G coverage on T-Mobile’s network here in the US, which makes the unlocked features a little less exciting. The customer support was also handled in a new fashion, with fragmented support for the Nexus One depending on the type of support the customer needs; purchasing, hardware, software, network? Let’s take a look now at what has happened in the two months since release to see where the Nexus One and this particular business model stands.
Sales
Initial sales numbers seem a little week compared to other Android phones, with reports pointing at roughly 20,000 sold during the first week, way behind the Droid at 250,000. Verizon and Motorola did heavily market the Droid, even announced it weeks ahead of it’s availability which helped create some buzz and allowed customers to prepare for the Droid. However, the Nexus One wasn’t officially announced until the day it was made available and even then, the announcement really wasn’t huge. Since then, almost all marketing for the Nexus One is done by Google through online advertisements, most of which are owned by Google. Some readers have stated that they see tons of Nexus One ads, which might be true, but that’s because you are the target, a customer who reads about Android phones, etc. On any standard, no tech related website, the ads are much fewer. I haven’t seen one TV, magazine or likewise ad for the Nexus One yet. It would seem Google is content with the sales at this point and doesn’t plan on adding any additional methods to the short sales list.
One other item to consider is that it is currently not possible to even touch or try out a Nexus One prior to purchase without knowing someone who already has one. You cannot go into any store, anywhere, and get a feel for how it works, it’s speed, the screen, the shape or how it feels in your hand. I think this also keeps sales lower than they could be. Even if you couldn’t purchase a Nexus One through say T-Mobile, if the T-Mobile stores at least had one demo unit, I think it would benefit both companies.
Support
When the Nexus One first went on sale there was zero phone support from Google. However, since then, Google has added phone support for purchasing and orders, a big step forward for the sales support. They still offer sales support through their website and email, but now you can also make a phone call direct to Google to find out when your Nexus One will ship. However, once your Nexus One is in your hands, that is where the Google phone support ends.
Online help: Google has setup a help forum for support of your Nexus One issues, and for the most part it seems to work out ok, but it’s still lacking in many ways. Just looking at the forum today and I see it’s filled with non-support comments and threads that insult users and opinions etc. Not exactly the best way to advertise support for your Nexus One Google. However, it may be sufficient at this time, as most Nexus One customers are probably web savvy, because they aren’t the average user who picks up the latest phone at the store. IE, they have to know what they are getting into by purchasing the Nexus One online. HTC also provides some support and it comes in the form of email and phone. HTC handles hardware issues, much like Google’s forum, however this makes it more difficult for the user to know exactly where to go should they have a question. And, they can always be told it’s the other companies problem, not ours (3G issues – is it T-Mobile or HTC?).
I think Google’s business model for the Nexus One is trying something different. Maybe it’s more of an experiment for Google than anything else. However, I think for the time being the Nexus One remains a niche product for a small group of users and unless Google changes some strategies, it won’t really ever take off. Having a brick-and-mortar retail store to sell the device would be the best step forward to improve some sales and having one stop support that covers all aspects of the phone from ordering to network issues would help solidify the Nexus One as a phone for all customers.
Accessories
One last thing is the accessories. The Nexus One upon release has nothing to accompany it. Though Google did state there would be a Desktop Dock and a Car Dock. Well, the Desktop Dock has come along as promised, but still no word on the Car Dock. Just recently, users were able to order a spare Nexus One battery as well, and this had completely caught me by surprise. Why? Because I had just assumed you could purchase a spare battery from day one, without really thinking about it. I just seemed logical to me.
Overall, it appears that the Nexus One will be stuck as a small side project in Google’s eyes. However, maybe, just maybe they are waiting until the hardware is ready for deployment on all US networks as well as international networks. If that’s the case…it shouldn’t be too much longer now. Let’s see what happens when the rest of the carriers can support the Nexus One.
