Some seemingly contradictory bits of news today: Android devices are seemingly selling like gangbusters, with the first 74 days (what an odd number) of sales of phones running Google’s Android OS outgunning the sale of Apple iPhones over the same introductory period. So all is well in the land of “goog-phones,” then, right? Not so fast. Sales of Nexus One, the Android device that Google is selling directly have, it appears, tanked. So what’s the story here?
Writes Gizmodo today:
135,000 units [sold] is a ridiculously tiny amount. Especially when the Nexus One was announced for a long time on the most popular web page in the world: The Google home page. Only the Nexus One and Google’s Chrome have been announced in that sacred place, which is used by a gigazillion people every day. It’s the most watched, most expensive advertising spot on the planet. Even worse: The sales rate is declining. After its first month, the Nexus One sold 80,000 units. That’s means that only 55,000 additional units sold in the next month. For a cellphone that is being named and talked about every single day by every single tech publication, and often mentioned in the mainstream media, that’s quite embarrassing.
Connected Planet’s Take, Sarah Reedy:
The relative Nexus One isn’t selling as well as other Android devices. First is the distribution method. Google has noble plans for it – more devices, more operators and more countries – but only selling the Nexus One online is a new method for consumers who are used to buying in stores. Secondly, the phone was launched after the popular holiday season with very little marketing from its carrier partner, T-Mobile, which could explain the initial slump. The continued decline came amidst a host of customer-service problems and a still price-sensitive consumer base. Sans operator, the phone costs consumers a cool $529, significantly more than most Android alternatives.
The device was definitely much hyped and discussed – but the fervor simply never made it past tech industry circles. But, hey, on the flipside, considering all the aforementioned factors it had working against it, I’d say that Google might consider 135,000 Nexus One devices sold a victory in its book.
Connected Planet’s take, Rich Karpinski:
Google’s relative failure with the NexusOne seems, above all, to point to the relative success of existing channels for cell phone distribution, which will only become more important when it comes to smart devices. I’ve made a couple of recent visits to AT&T and Verizon retail locations, respectively, and these locales do a great job serving customers. There’s work yet to be done: their systems might not always reflect available inventory, and orders started online rarely if ever can be finished in the store. But the chance to deal with a live person, even if they are telling you “no, you can’t break your contract without paying an ETF,” is comforting to most consumers, I think.
And besides, I thought online was the channel where you got * better * deals — $529 for a phone, contract or not, is a steep price for anyone these days (even if Nexus One is still the main way to get Android 2.1 featuring the system’s latest features). In the end, I think Google learned some key lessons that the no-touch world of AdSense text-ad buying doesn’t necessarily extend into the world of smart phone devices and contracts. It’s a lesson other carriers would do well to heed as well.
That’s our take on this, let us know what you think in the comments below:
There are some vendors/manufacturers/service providers who think that having a “no brick” retail environment is “just fine”. It is just fine, if poor sales is their goal. Regardless of the huge quantity of information, data, reviews (some are even true!), blogs, etc., most folks would like to hold their contemplated purchase in their hand, at least. (Unless it is a car, or a house. If so, they’ll need both hands.)
Once the “brick” retail environment exists, then, THAT ENVIRONMENT needs to be done correctly, too. There are so many poorly designed stores, with poorly trained sales staff, with information contradictory to other sources, and atitudes that run from “I don’t care”, to “Go to hell.” (In spite of the large, or small, investment made in the store.)
Sometimes, one can run into vendor/manufacturer/service provider who DOES NOT know how to merchandise, sell, and support, their great products and “brands”.
I wish them luck. They’ll need it.