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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