Nexus One Problems – Can Google Pose Significant Threat In The Long Run?

News | Wednesday January 13 2010 6:46 PM | Comments (0) Tags: , , , , , ,

The company has faced quite a bit of challenges in just the initial week or so. One of the major problems has apparently been the sales model. With no '
' to precede a purchase, most buyers have apparently stayed away till they get to see a working model with their friends.
The first week of sale has thus not been very encouraging with Flurry, the popular mobile app analytics company reporting that only close to 20,000 Nexus One handsets were sold in the first week. This is just a fraction of the 1.6 million
handsets that Apple sold in the first week of launch. While it is not entirely justified to compare a first gen device with one in its third generation, it is to be noted that even
and HTC myTouch had clocked 250,000 and 60,000 devices respectively in their first week of sale.
While the sales volume should possibly increase as more people make a purchase decision after seeing a working device with friends, the other big problem that Google has been facing is with taking ownership of customer problems. Earlier this week, Google Help forums were inundated with complaints regarding 3G connectivity problems. With HTC manufacturing the device, Google marketing it and T-Mobile offering the connection services, picking the right helpdesk can be quite a frustrating experience for customers.
The frustrations do not seem to end there. A section of the blogosphere has also been complaining about Google's first-of-its-kind policy to charge an Early Termination Fee (ETF) that shall be in addition to T-Mobile's own ETF charges. A Nexus One user breaking the contract within the first three months of purchase thus stands to lose $550; the highest in the industry. While Google has defended their decision claiming that this is a standard industry procedure, it has apparently not gone down well among the users.
So as things stand now, Google has its task cut out in trying to recoup and pose a significant business threat. It will be interesting to see how this shall be done.
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