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Christopher Dawson

Google to stop selling Nexus One online

By | May 14, 2010, 10:58am PDT

Summary: Why is Google closing its Nexus One store? Because nobody’s buying the unsubsidized phone!

Google announced on its blog today that it stop selling the Nexus One via its website soon. As the company explained,

We’re very happy with the adoption of Android in general, and the innovation delivered through Nexus One…But, as with every innovation, some parts worked better than others. While the global adoption of the Android platform has exceeded our expectations, the web store has not. It’s remained a niche channel for early adopters.

No kidding, right? I’m a Google nut and couldn’t wait to dump my BlackBerry for a Nexus One just as soon as it came to Verizon. Not only did I have no use for a GSM phone in my area, but I didn’t have the cash to drop on an unsubsidized phone. As soon as it became clear that the Nexus One wasn’t coming to Verizon, I pre-ordered my Droid Incredible (also, of course, subsidized on Verizon).

Sure, there are plenty of people out there who can just pay cash for a phone and activate it somewhere. I’m not one of them and neither are most cellular users (which means basically everyone). Google’s new approach, also outlined in their blog post makes much more sense:

Once we have increased the availability of Nexus One devices in stores, we’ll stop selling handsets via the web store, and will instead use it as an online store window to showcase a variety of Android phones available globally.

The Nexus One was (and is) no doubt a great showcase for what an Android phone could be. However, these are powerful pocket computers that also happen to be phones. As such, they are expensive. No matter how innovative or cool, they need to be hooked into a wireless carrier anyway. Why pay full price when you’re going to pay for data service monthly and plenty of subsidized Android phones are available on all major carriers?

Google also acknowledged that many users, when looking to buy a new phone (especially one that represents a completely new platform), need to poke around and hold it in their hands. When I pre-ordered my Droid Incredible, I was relatively confident that I’d be happy with it since I’d not only followed a variety of reviews, but had even used Android 2.1 on both a Droid and in an emulator on the Android SDK. A lot of consumers don’t have that advantage. For Google to really drive new adoption of Android smartphones, the in-store experience is an important one.

Glad to see Google moving on…Now what was that about Nexus Two?

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Topics

Chris Dawson is a freelance writer and consultant with years of experience in educational technology and web-based systems. In 2011, he became the Vice President of Marketing for WizIQ, Inc., a virtual classroom and learning network SaaS provider.

Disclosure

Christopher Dawson

Christopher Dawson is the Vice President of Marketing for WizIQ, Inc., by day and a freelance writer and educational technology consultant by night. Well, most of his colleagues at WizIQ are based in India, so really he's working with them whenever he can stay awake. He has worked for his local school district as a teacher and technology director, for the Johns Hopkins University School of Public Health, and for Biogen, Inc. (now Biogen-IDEC, Inc.). He has also consulted with STATNet and Cytyc Corporation and retains close ties with X2 Development Corporation (now owned by Follett Software, the supplier of the student information system he administered for several years). Follett is paying him a monthly honorarium to act as a presenter for their "SIS Voices for Student Achievement" community (he produces occasional blog posts and hosts a monthly webinar on the use of student information systems to inform data-driven instruction and school-wide change. He regularly purchases and/or recommends Dell hardware. This is because Dell makes good hardware and has truly committed itself to education in innovative ways, particularly with their "Connected Classroom" initiative. It isn't because he has dealings with the company through his role at WizIQ (which he does) or because they have provided him with long-term loans of a variety of equipment for in-depth testing (which they have). Intel (reference designer for the Classmate PCs he has implemented in his local schools) has provided him with long-term loans of Classmate PCs for testing, as have Dell and Lenovo with their educational offerings. He may report on any of these companies as his experiences with them have direct bearing on educational technology; positive reports are not necessarily an endorsement and he receives no direct financial compensation from these companies or any others. Intel paid all expenses for his attendance at the 2009 Intel Classmate PC Ecosystem Summit which he attended as the sole representative of the technology press. He was invited to attend in 2010 but his wife would have killed him if he spent 3 days in Vegas geeking out and left her home alone with a new baby. Acer provided him with a 50% discount on an Aspire One netbook in early 2009 after he tested it for 30 days through their educational seed program. He liked the netbook at the time but it has since broken and sits unused in his office. Canonical sent him Ubuntu lanyards, t-shirts, and mousepads for his kids. He stole one of the lanyards and proudly hangs his keys from it and occasionally features his 8-year old wearing an oversized Ubuntu t-shirt on his Facebook profile. Gunnar Optiks sent him a pair of computer glasses to evaluate for a holiday gift guide. He is wearing them now as he types this because they never asked for them back and they rock out loud. Seriously - they work brilliantly and make it much easier to spend 20 hours a day staring at an LCD. If they ever asked for them back, he would fork over the $99 and buy a pair. Microsoft gave him 2 free copies of Office 2010 professional, a desktop clock, and a useless book on Office 2010 when he attended the launch of Office/Sharepoint 2010. He occasionally uses the SharePoint lanyard they gave him instead of the Ubuntu lanyard for his keys, but feels dirty afterwards. Adobe provided him with a pre-release version of the CS5 Master Collection for evaluation and ultimately provided a full, licensed copy for ongoing testing of educational applications of this admittedly expensive software. Like the Gunnars, if the license expires or they come out with CS6, he'd actually go out and buy it himself. Which is saying something, because he's actually pretty cheap. Any other companies wishing to send him cool things to evaluate, wear, or otherwise adorn his kids are more than welcome to; he promises to disclose it here if he keeps any of the stuff. Finally, because WizIQ is a virtual classroom and learning network provider, Chris, as VP of Marketing, frequently interacts with, seeks out deals with, and directly or indirectly competes with a whole lot of LMS, SIS, and other Education 2.0 companies. In general, he'll limit his reporting about these companies to news that does not impact his relationship with them or with WizIQ. If he reports on them, it's because what they are doing is newsworthy or worth the attention of his readers and not because he's trying to broker some deal, damage competition, or otherwise advance his position in his day job. LMS and SIS companies, along with other online learning communities, are a pretty important part of Ed Tech. If he stops reporting on them completely, there won't be a whole lot left. He'll be sure to call out any overt conflicts of interest if they are unavoidable. Finally, Follett Software Company pays him a little tiny honorarium every month to present on their SIS Voices webinars and to write the occasional blog or discussion thread for them. Since Follett recently bought X2 (maker of an awesome web-based SIS that Chris just happened to have used, served in advisory groups for, and frequently reported on), this is probably also worth disclosing.

Biography

Christopher Dawson

Christopher Dawson grew up in Seattle, back in the days of pre-antitrust Microsoft, coffeeshops owned by something other than Starbucks, and really loud, inarticulate music. He escaped to the right coast in the early 90's and received a degree in Information Systems from Johns Hopkins University. While there, he began a career in health and educational information systems, with a focus on clinical trials and related statistical programming and database modeling. This focus led him to several positions at Johns Hopkins, a couple-year stint in private industry, teaching high school math and technology, and 2 years as the technology director for his local school district. Most recently, he started his own consulting business and is now the Vice President of Marketing for WizIQ, Inc., a virtual classroom and learning network provider. He lives with his wife, five kids (yes, 5), 2 dogs, and a hateful cat in a small town in north-central Massachusetts. Although he is no longer teaching, his roles with WizIQ and ZDNet allow him to continue helping students and teachers add value to education with technology rather than merely adding to the bottom line.
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Contributr
Looks like TigerDirect is there for you
mrdatahs 15th May 2010
@hayamaguchi http://www.tigerdirect.com/applications/SearchTools/item-details.asp?EdpNo=5581839&CatId=5117 They have a wide variety of unlocked phones, but not many yet running Android.
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Unsubsidized Phone Cost
Spatha Updated - 14th May 2010
I purchased an unsubsidized Nexus One, in part because it was the least expensive option. That's because T-Mobile offers a no-contract plan at a $20 discount: $60/month (cancel any time) vs. $80/month (2-yr. contract).

Even with the high cost of the unsubsidized phone, I'll come out slightly ahead over two-years. And of course I can cancel my plan (and sell my phone) at any time.

But the main reason I'm sorry to see the online store go, is that it offered a way to get a phone directly from Google and unrestricted by any carrier provisions.

Many phones are available unsubsidized, and most carriers (even Verizon) will support them. I hope this trend continues
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Total cost of unsubsidized phone
Xtomik 15th May 2010
@Spatha

For people even cheaper than that, like me, I bought the unsubsidized phone because T-Mobile offered a way to by a prepaid pay-as-you-go SIM card. The main huge drawback is that I don't have a data plan at all and have to rely on wi-fi, but I also have a monthly fee of zero. I just pay for the minutes and text I use, which isn't much.

No other smartphone is available like that. Now I just wish T-Mobile would allow a prepaid data plan to be used on top of a prepaid voice plan.
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I don't get it... you don't have to pay a full, unsubsidized price. You can get a contract with T-Mobile right in the online store and pay the $179 price. AND they'll let you return the phone if you don't like it.

I got it only with the lower price, and I couldn't be happier.
0 Votes
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Long term plans are a trap
rarsa Updated - 14th May 2010
You really think that a "subsidized" phone is really cheaper?

I guess you are also renting your furniture.

On the long run you end up paying more and once you are in, it is very expensive to get out.

Additionally, an unsubsidized phone is unlocked, so you can change carriers without having to throw your phone away.

By the way, When my son bought it, there weren't any carriers in Canada that offered it.
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RE: Google to stop selling Nexus One online
can4spam@... 14th May 2010
@rarsa If one looks more deeply at the question it can be seen that unsubsidized app phones seldom save money because one still needs a voice and data plan. TelCos do not give a discount for unsubs.
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If I were Google, I would put my developers at work creating Android-lite OS upgrades for compatible Windows Mobile Phones. There are a number of Windows Mobile 6.x phones that could run Android, if the drivers were available.

Giving users of phones like the HTC PPC6800 and newer a way to move to Android would create additional momentum for the Android application market. Carriers or hardware manufacturers like HTC would not have to worry about decreased sales, since a majority of users would migrate to faster Android hardware with the non-"lite" version of Android. The older, slower, Android-"lite" phones would continue to be passed on to other non "power-users," including pay as you go users, generating additional app sales and market expansion.
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Unsubsidized is much cheaper
man_28 Updated - 14th May 2010
I am using it with AT&T pay as you go plan. I pay only $25 every 3 months.
Since plans costs over $60 a month, I will get my money back in about 12 months
Google voice allows me to redirect most phone calls to my work or home number, so I have minutes left after 3 months anyway
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RE: Google to stop selling Nexus One online
Graham Ellison 14th May 2010
What a colossal fail!

Does Google only understand one business model? What's so difficult about online retail of a mobile phone?

They have the entire world of online retail as advertising clients, and they can't put one simple deal together for themselves.

What's more, they have the world's best, most ubiquitous, generic brand of all time. Al they had to do was call it the Google Phone and they would have had a certain winner.

This is pathetic on a level that defies definition.
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I'm no businessman,
becabill 14th May 2010
@Graham Ellison
but it seems to me that Google is doing more things right than wrong. Is it just possible that they're making a smart move here?
0 Votes
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Does this mean that we no longer have a venue to buy an unlocked Android smartphone? Anyone?
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Contributr
@hayamaguchi http://www.tigerdirect.com/applications/SearchTools/item-details.asp?EdpNo=5581839&CatId=5117 They have a wide variety of unlocked phones, but not many yet running Android.
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Jailbreak
pjotr123 15th May 2010
Every major town in The Netherlands has phone shops where you can have your phone unlocked, for a mere 10 euro's. It's even legal, assuming that you haven't yet used the SIM card of the provider: only by activating that, you agree to the license agreement which forbids jailbreaking. I suppose it's the same in the U.S.A.

So you can have your subsidized phone and still be free. Best of both worlds....

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