Google to stop selling Nexus One online, favors retail stores

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Matthew DeCarlo

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When Google launched the Nexus One, it set out to revolutionize the way people purchase handsets – a change that has been shown to the door as quickly as it was ushered in. The search giant announced in a blog post this morning that it would gradually stop selling mobile devices online, instead favoring traditional outlets.

Although the company is pleased with the adoption of Android, its online store hasn't fared nearly as well, standing merely as a niche channel for early adopters. Google said that customers simply prefer a hands-on experience when buying a phone – a safe notion, we reckon.

As such, the company plans a global rollout of the model it uses in Europe, where it offers the Nexus One through existing stores. Once the Nexus One is available through more retailers, Google will axe its Web-based operation, using it solely as an online store window to showcase Android phones.

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It is a shame google has done this. In Australia the cost of the phone is likely to be at least $200 above the cost google was selling online, if sold through the existing telcos. I am guessing our telcos are the reason why google are not selling to Aus now, the telcos love their stranglehold on customers. Google please sell to Australia before withdrawing the on-line store. Australians get royally shafted by our telcos and we need some relief, you were our only hope of bringing competition to the Australian market. I know of at least 3 people who have purchased the phone outright via alternate means but I wanted to wait until you were selling to Aus. I should have just followed suit :(
 
This is actually probably the best approach to selling that Nexus One phone, and Google should have done this from the start. Selling through the big chains that are allowed to carry multiple wireless providers, and giving the customer the option of the full price no contract version, or letting them pick a contract with a provider they like, would have been ideal. And they could have reaped large benefits from free (to Google) advertising through those chains, rather than the meager to no advertising they actually had on launch. Of course, this would require a phone that was not locked into a relatively small carrier with lackluster coverage (T-Mobile). The whole N1 launch was the first time in a while that I have witnessed Google being timid about something, with them just appearing to stick a toe in the water rather than jumping in... But I suppose there were factors we just don't know (like contractual obligations, considerations about ticking off their Android product manufacturers, etc). Either way, I think going with established supply chains rather than reinventing the wheel with a separate online store is only going to bolster sales and benefit the consumers in the end.
 
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