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Posts Tagged ‘Nexus One

NexusOne1Google has performed a u-turn on its strategy to sell its own-brand Android smartphone, the Nexus One. In a statement yesterday, the company announced that Vodafone will from this Friday start selling the device in the UK via its stores, online and over the phone. “Soon after,” Google said, it will be available via SFR in France, as well as via Vodafone’s other subsidiaries in Germany, Italy, the Netherlands and Spain. More operator launches look to be on the horizon, as Google noted that Vodafone is the “first European partner to distribute the Nexus One.” The move is a direct contrast to Google’s original retail model for the device; when it launched the high-profile phone in January Google surprised many industry watchers with plans to only sell the product via its own online store. Such a move broke heavily with traditional mobile industry business practices, bypassing the mobile operator retail stores that serve as a key distribution channel for mobile phones. Meanwhile, US operator Verizon Wireless has been dropped as a partner for the device; despite being touted as an initial partner at launch, Google is now advising customers to instead “pre-order the Droid Incredible by HTC, a powerful new Android phone and a cousin of the Nexus One that is similarly feature-packed” and available in stores on 29 April. The Nexus One remains available to T-Mobile USA customers.

Reports have been quick to cite analysts as stating that the actions represent a setback for Google’s plans to carve a role for itself in the mobile business and to redefine industry practices in the process. The move is also likely to fuel speculation that Google has been forced to change its strategy due to less-than-stellar demand for the Nexus One; analysts believe Google sold about 150,000 Nexus One devices in the first quarter. By contrast, Apple sold 1 million iPhones in the first 74 days after releasing the gadget in 2007. However, earlier this month Google’s CFO Patrick Pichette said Nexus One is “a profitable business for us”, whilst Jeff Huber, SVP for enginnering, added that the company is “very happy with the device uptake and the kind of impact that’s had across the industry in terms of raising the bar for what devices can do.” Huber added that Google’s Android system is powering 34 devices and that more than 60,000 Android devices are sold and activated each day. Android also had 38,000 apps in the previous quarter, up 78 percent from the last quarter.

Source: GSMA Daily