Google Nexus One Online Sales Model Fails Miserably

Written by: Gundeep Hora on 3/09/10  |  Filed Under Mobile  |  Share    

After the disappointing launch of the Google Nexus One, the search giant’s sales strategy to sell the phone directly online has failed miserably. If it thought it could undermine the importance of retail distribution channels and translate its massive user base online into buying customers, it thought wrong, and the amount of units sold is proof of that.

Goldman Sachs reduced its Nexus One sales units estimate from 3.5 million units sold in 2010 to a mere 1 million. In 2011, that number doubles to 2 million only if Google introduces a second handset. In essence, the investment bank isn’t thrilled about Google’s hardware sales performance.

Not only does it need to start taking advantage of retail channels, but it also needs to push its marketing efforts beyond taking over the Web with ads, recommends Goldman Sachs.

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  • Chas
    With the mess Goldman Sachs has gotten this country into, I'd be wary of any self-styled pronouncements that investment house would make. Google's phone may not be the rage GS thinks it should be, but if it's moving millions of units they're doing something right.

    At least Google hasn't ripped off millions of taxpayers.
  • The biggest problem is the phone only works 100% with one of the least popular cell providers in the US. I guarantee I'd buy one immediately through Google's store if they'd release a version that works with AT&T's 3G network. Until then, who with an iPhone on AT&T wants to spend $500+ for a phone that only works on AT&T's EDGE network?!? It's not the idea of the sales model that's failing, it's the fact that they have a single phone that works on one of the least popular carriers. The website could give me a free back rub, but that's not going to get me to pay half a thousand dollars for a slower mobile Internet experience.
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