By Richard Wray: Google’s attempt to break into the mobile phone market has hit serious problems in Britain with the launch of its flagship Nexus One device understood to have been delayed until the middle of next month.
The setback means that by the time Google’s first own-branded foray into the market this side of the Atlantic is available to consumers, its local network partner Vodafone (NYSE: VOD) will have launched a competing product, which analysts say is better, called the HTC Legend.
While Google (NSDQ: GOOG) has been working with the industry on the Android mobile phone software for several years, the Nexus One, made by Taiwan’s HTC, is the first handset over which the search engine group has had complete control. But launching a new phone has proved more difficult than Google expected.
It was released in the US in January, but Google’s decision to sell it solely through its website immediately came in for criticism as buyers struggled to get help with technical problems, and Google, which has traditionally relied on email for consumer contact, was forced to introduce telephone helplinessupport and the problems it has experienced in the US has given it reason to pause over the phone’s launch outside the US, to make sure it has its customer service operations in place. Last week Goldman Sachs slashed its estimate for Nexus One sales this year from 3.5m units to 1m worldwide.
In the UK, Google will not only sell the phone at full price to any customer who wants to put their existing sim card into it, but it has also teamed up with Vodafone, which will offer the device free to anyone willing to sign a £35 monthly contract.
But the delay in the launch of the Nexus One, which under Google’s original plan would have been available earlier this month, means that it will come after the launch of rival Android devices that analysts reckon are at least as good, if not better. Vodafone, for instance, will be offering the HTC Legend in April which has the same operating system as the Nexus One but is more stylish: being built from a single piece of milled aluminium. Orange and T-Mobile, meanwhile, will both be stocking the HTC Desire
This article originally appeared in © Guardian News & Media Ltd..

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