On July 16, 2010, Google announced the discontinuation of their Nexus One phone, stating that the phone would no longer be available online, and that it would only be sold through select retailers in Europe and Korea. This raised questions by many who hailed the phone as a triumph for Google, and viewed the phone as a sure-fire competitor in its market. On the one hand, many have been quick to point to disappointing sales figures for the phone as the primary reason why Google dropped the Nexus One, but were there other factors in Google’s decision?
It would seem there were actually a variety of reasons why Google pulled the phone, but there are three which stand out above the rest.
The first reason is that they effectively became competitors with their partners. This created odd tensions between Google and phone companies like T-Mobile and Verizon, who have partnered with Google in the release of Nexus One and other Android phones. These companies were selling the Nexus One as a product bundled with their services, but the fact that all the major phone companies were able to do the same, and were all simultaneously competing with Google as a retailer for the phone itself became a point of contention. The phone never really had a solid platform as a result, a fact which came to undermine product sales and credibility.
The second reason is, as mentioned above, was disappointing sales figures. Various numbers have been thrown about by various reporters, but the consensus seems to be that the Nexus One sold only around 20,000 units in its opening week, and by the time of its discontinuation had only sold around 150,000, in contrast to its apparent competitor, the iPhone 4, which has sold well over a million units. Of course, a product cannot succeed without numbers backing it, a fact which brought more trouble to the doorstep of the Nexus One.
The third reason for the discontinuation of the Nexus One is its failure to properly brand itself. Google didn’t push as hard on advertising as its competitors did for their products. Apple and AT&T had a variety of ads for the iPhone 4, as did Verizon for its new Droid phone, yet the Nexus One was relegated to a few Hulu ads and a small space at the bottom of Google’s homepage. For this reason, it could be argued that the average consumer simply wasn’t aware of the Nexus One, contributing to poor sales.
The tragedy of the Nexus One is that it actually performed well as a phone. Its failure wasn’t because it was an inferior product, rather, it was killed through a lack of proper planning. At present, Google does not plan to continue the Nexus One line, though I hope at a later date they make a comeback and reenter the mobile phone market, learning from their mistakes with the Nexus One.
