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Early Nexus One Sales Just 865,000 Short of iPhone Sales

Google may be a formidable search company, but as a mobile device distributor, it’s a piker. After 74 days at market, Google’s new Nexus One “super-smartphone” has sold just 135,000 units, according to a new estimate from analytics outfit Flurry.

A piddling amount considering that sales of Apple’s (AAPL) iPhone and Motorola’s (MOT) Droid topped out at one million and 1.05 million after their first 74 days of availability. In other words, sales of those two devices have surpassed those of the Nexus One by a factor of eight (see chart below; click to enlarge).

If Flurry’s estimate is correct, the Nexus One is proving an enormous disappointment. And it’s not as if it has suffered from lack of promotion. After all, Google promoted it from the front pages of two of its most highly trafficked properties: Google.com and YouTube.

Perhaps consumers are finding Google’s (GOOG) new direct-to-consumer sales model off-putting (although I really don’t see why). Perhaps the company’s choice of T-Mobile as an initial carrier has narrowed the available market a bit too much and demand will spike when the device finally arrives at Verizon (VZ). But such poor sales performance is certainly a blow to Google’s plan to upend the consumer-carrier relationship.

As Flurry notes in a blog post detailing its data: “As Google and Apple continue to battle for the mobile marketplace, Google Nexus One may go down as a grand, failed experiment or one that ultimately helped Google learn something that will prove important in years to come. Apple’s more vertically integrated strategy vs. Google’s more open Android platform approach offer strengths and weaknesses that remind us of PC vs. Mac from the 1980’s.”

Amplifying the comparison, the report continues: “A key difference this time around is that Apple is enjoying much more 3rd party developer support, whose innovative applications push the limits of what the hardware can do. Ultimately, however, developers support hardware with the largest installed base first. For Android to make progress faster, from a sales perspective, it needs more Droids and fewer Nexus Ones going forward.”

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  • narainbhatia
    I just bought Nexus One after I looked at Droid. At the Best Buy I got royal treatment explaining Droid but when I called T-Mobile store nearby, they said I had to buy the phone from Google online and bring it to them for adding a month to month contract which incidentally is about $20 cheaper than 2 yr contract because I was not buying the phone at discount. Salesman said that they do not sell the device directly. Google online sold only 500 minute individual plan but I was interested in a family plan. There was no human to talk to at Google. So, if I am a sample computer the purchase experience was very poor...could be a major reason for lack of sales pick up.
  • I wouldn't count Google Nexus One as a failed product launch just yet. Google has superior brain power when it comes to marketing and Apple. Case in point: have you noticed all the Google Nexus One ads running through Adsense on blogs? Do you think Google is paying itself to run all those ads? Google has the world's largest proxy sales force via Adsense and they can advertise over their own networks free while Apple would have to pay hundreds of millions of dollars to run the same amount of ads. Now this is just one advantage Google has, I could list about a dozen more: Summary: Don't bet against Google.
  • scotty1234
    agreed to an extent. Droid launched out on Verizon. Nexus One on Tmobile. While it may seem like that was a mistake I think it was smart to work out the bugs, then go big on Verizon. Watch what happens when Nexus One hits Verizon stores.
  • hohos
    Scotty 1234,
    I don't think the Verizon network capable Nexus One will make that big of an impact on overall sales.

    You imply that the reason for the sub-par launch was due to the fact that the Nexus One was launched on T-mobile and not on Verizon. I think you are forgetting that the Nexus One, supposedly, won't be sold in Verizon stores. Thus the launch may not be as big as you think.

    If the Nexus One launch on the Verizon network isn't a success, maybe we are all underestimating Verizon's marketing prowess.
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