Google’s Nexus One Not Likely in Verizon Stores
Google’s Nexus One isn’t just a hot new Android phone — it’s an experiment. Here in the U.S., the traditional cellular model is one of subsidized hardware and handsets locked to particular carrier networks. We’ve seen unlocked phones and direct sales tried by some, such as Nokia, but by and large, that’s the exception, not the rule. So Google is trying it with direct online web sales for the Nexus One, and the first iteration is unlocked for use on either AT&T’s or T-Mobile’s network. The device isn’t in either of those carrier’s stores, but the Boy Genius Report alleges that it could be sold in Verizon Wireless retail stores. Some internal email evidence passed to BGR reportedly indicates Verizon store representatives have been receiving Nexus One handset training in support of in-store sales. So will the Nexus One be available in Verizon retail stores, as many are hoping?
I don’t think so because it doesn’t fit the current Google handset model. The number of Nexus One handsets expected to move this year was recently revised downward, so could Google modify its sales strategy and have Verizon directly sell the device? It could, but it’s not likely. Besides, a million phones is a pretty solid start for an entirely new sales and support model. Google is trying to shake up the industry — first with its Android operating system and now with direct sales — so giving in now to the traditional cellular market approach would lessen the impact of that shake-up.
Opinions aside, more telling is an email conversation I had late last week with a Verizon Wireless spokesperson. I was asking about the Apple lawsuit against HTC, wondering if that could stall plans to sell the Verizon version of Google’s Nexus One — the handset is built by HTC and specifically mentioned in the suit. I understandably didn’t get a response on that front because the company doesn’t comment on lawsuits between other entities. But I also asked about the rumored March 23 release date for the Nexus One on Verizon’s network — Google specifically shows “Spring 2010″ availability on the Nexus One product page — the response to which sheds light on the type of relationship Google has with Verizon with respect to the Nexus One:
“[W]e have never said that we were going to sell the Nexus One. What was said was the phone was to work on the Verizon Wireless network. That is very different from saying we were going to sell the phone in our stores.”
The spokesperson also said:
“You would have to contact Google for anything associated with the device. We have a number of wholesale customers — it is an important part of our business but that doesn’t mean we speak for them or their products. It would be inappropriate for me to discuss a phone that we’re not selling.”
Although it’s not a direct confirmation of who will actually sell the phone, it sounds pretty clear to me — Google will be directly selling the Nexus One for use on the Verizon Network as a wholesale partner. That fits with the sales model that Google started and while the Boy Genius Report could be right, I just don’t see why Google would change it now.
I do believe that the model’s biggest weakness is the lack of in-store devices, however. For a tech enthusiast like myself, it wasn’t a problem to purchase a Nexus One sight unseen. But mainstream consumers understandably want to look at, play with and handle hardware before investing in a new purchase. Fewer devices are more personal than a phone — for most, it’s the one device you’re likely to always have with you. So making such a personal purchase based on reviews and a web page is a tough sell.
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I’m more interested in what the relationship between admittedly more powerful Verizon and Google will yield with regards to the service plan(s) they will offer. I am wanting an N1, but holding out to see what Verizon offers vs T-Mobile. Since I will be leaving a family plan with Sprint – for new hardware – I’m hoping Verizon’s market share will afford it more leeway as to plans (ie; family plans not offered via T-Mobile)
I can think of one reason Verizon stores would sell the Nexus One. The partnership Google and Verizon founded in October. It makes sense that Google would give selling dibs to Verizon and Verizon only
I could be wrong, but I think Google will offer it in Verizon stores. They should do so because the sales of the device have been lacking and it’s true that people like to hold and inspect the device that they are getting married to for two years.
Yes, they are trying to shake things up, but first and foremost, they are trying to break into the smartphone market. Once they prove their adequacy (which they have already to me…I went from an iPhone to a Droid and it was a great decision), then they can change the way they sell the devices.
Wait – please tell me this wholesale partnership wouldn’t mean no subsidization with contract…please?
I agree that the likelyhood of Google changing it’s strategy this early in the game is unlikely. I believe they will continue to test their current sales channel (online only) for the time being.
There is also the question if Google really want’s the Nexus One to be a huge hit with sales at this time. The primary purpose may not be large sales.
https://www.google.com/phone/choose
go to this link right here, and scroll down until you see this line: The Nexus One Phone with Verizon Wireless service. Coming soon in the United States.
Who’s symbol is above that? The stupidity of people astounds me, honestly.
What matters to me whether Verizon will allow one to use an UNLOCKED CDMA Nexus One with an EXISTING account and NOT REQUIRE one to purchase a 3G data plan.
IF Verizon decides to ’strong arm’ owners of the Nexus One and REQUIRE them to purchase a $30 – $50 / month 3G data contract, as they do for the Droid, then I’ll be moving over to T-Mobile after a 12 year stint with Verizon.
I have been asking Verizon for a ‘smart phone’ with my existing plan WITHOUT the cost of 3G network support.
A Nexus One looks to be an ideal replacement for my combination of Palm PDA and LG phone. However I DO NOT NEED, DO NOT WANT and cannot justify the expense of 3G data network access. WiFi is ADEQUATE for my needs.
Google and T-Mobile got it RIGHT !!! Provide the option to purchase an UNLOCKED phone and substitute for existing or new phone contracts with or WITHOUT a 3G data plan.
If Verizon wants my continued business, then they will follow Google and T-Mobile’s business model and support UNLOCKED phones with existing, non-3G enabled phone account.
Pet theory: Google may not be overly concerned about the phone’s sales volume. It’s plausible that its intention was for the Nexus One to be mostly a reference phone, to show what an Android phone can be and to encourage other manufacturers to get there quickly.
Selling strictly on the Web (and not through retail stores, in direct competition with its manufacturer Android buddies like Motorola) means not upsetting the partners who are vital in driving the momentum of the Android platform; selling only on the Web means, as you noted in your post, intentionally keeping sales volume lower, as the average consumer will want to touch and feel a phone before buying it.
No. It is way more than a pet theory (and I completely agree).
We’ve basically got two camps here.
Camp 1: What is wrong with Google? Look at those awful numbers on N1 sales! Wow, they really botched it.
Unfortunately, a lot of tech “analyst” opinions out there fit into this camp, which is sad because it only reacts to a generic impression of what releasing a product should look like and utterly fails to ask any probing questions.
My immediate reaction to the move was, “Hm, that is odd, but I’m fairly certain it also is intentional.” Assuming it was an intentional move, the next question is, “Why might they release the phone in the way that they did?”
That brings us to our second camp. Camp 2: How does the quiet launch further Google’s mobile objectives? Just what are they up to?
Directly before the release of the N1, Verizon spends $100m on marketing Droid. Directly after the release, Jobs throws a tantrum. When you start connecting the dots, I think it is crystal clear that, at least in part, Google wanted to try and ruffle as few friendly feathers as possible.
With that in mind, I think it is unlikely that the N1 will be sold in Verizon stores (although not impossible, if we assume that the Droid marketing effort has reached its goals and Verizon is ready for the next push).
A more interesting question, in my mind, and one that has totally been missed by tech bloggers as far as I call tell, is whether or not the carrier will be ready for it (i.e., how effectively Google and the carrier spell out and understand their own arrangement).
From personal experience, T-Mobile reps are all over the place, in terms of what plan you can upgrade to, who ought to be eligible for the discount, and so on. The Google site is sorely lacking in some basic questions too. For example, you can’t get a discount on the N1 while on a family plan, but once you have the phone you supposedly can upgrade to any Even More plan, several of which happen to be family plans.
I can’t believe that all this activity is going on with other carriers, getting these new phone. Than you have Verizon, that hasn’t had any latest phone on the market since the Droid. If you read the news you can see all the activity that AT&T is doing.
I think this story may just be a risk to get a scoop. It seems like the advertisement and underground hype to this phone is going to eventually yield a relationship between Verizon and Google, but they are being low key about it as the phone model/specs may change. I’ve read that the model number will be different for CDMA than the current version sold by T-Mobile. This story could be another attempt to be the one to say “I told you so” when this phone doesn’t drop in time…which they never do.