Nexus One

Google gives up on Nexus One online store, moves to retail | Electronista.

So much for Google the Shopkeeper.

UPDATE:  This also puts the idea of Android generating any revenue for Google at a logical dead end.  As it stands tactically and strategically, Android is a financial black hole in perpetuity.

Android remains, in my opinion, Google's biggest failure.

"We wont be selling a Nexus One with Verizon and this is a reflection of the amazing innovation happening across the open Android ecosystem," Google said in an emailed statement.

via UPDATE 1-Google smartphone coming to stores, no Verizon| Reuters.

Come again?

The breakdown of the deal signals Verizon may view Google as a competitor rather than a partner when it comes to Nexus One sales, which are probably at less than half a million since the phone’s January debut, said BGC Partners’s Colin Gillis. 'It’s really a flop for Google,' said the New York-based analyst."

See also: Bloomberg.

Despite the fact that the Google Nexus One is the most advanced Android handset to date, and enjoyed substantial buzz leading up to its release, the launch has been overshadowed by lower than expected sales.

link: Initial Sales of Original iPhone, Droid, and Nexus One Compared - Mac Rumors

On the heels of the 71% cut in estimates this should not be a surprise. Nor should it be given Rubin's stated goal:

Rubin hopes his company can sell, at the very least, 150,000 Nexus One devices.

link: Google’s Mobile Chief Andy Rubin on the Google Phone & the Androidification of Everything – GigaOM

We previously estimated that Google might sell 3.5 mn Nexus One units in 2010. Initial data-points were disappointing, possibly due to limited marketing and customer service challenges. Flurry estimated (based on mobile traffic) that Google sold 20,000 in the first week, and 80,000 in the first month, both annualizing to 1.0 mn. We forecast that Google sells 1.0 mn Nexus One units in FY2010, benefiting from US carriers other than T-Mobile, and non-US carriers such as Vodafone, promoting the device too, but suffering from limited marketing activity. We assume that Google rolls out a second Nexus handset, markets it more aggressively, and makes it available offline, and therefore forecast that Google sells 2 mn handsets per year in 2011 and future years.

link: Goldman: We Were Too Rosy on Google Smartphone Unit Sales - MarketBeat - WSJ

First they get excited over Palm then fawn over Nexus One. Then they take it all back. Give us a break.

Read my takes here:

Google the Shopkeeper
Nexus One: 80k units in first month -Flurry Android vs. Google