Mobile Technology

Carrier apathy depresses Google Phone outlook

(THE REGISTER) - Google is discovering just how dangerous it is to ruffle the feathers of the major cellcos. Its Nexus One handset may be one of the most advanced on the market and bear the magical brand, but half-hearted marketing efforts by carriers have led to disappointing sales. Now, analysts at Goldman Sachs have slashed their estimates for sales of the phone this year by 70 per cent.

Several operators did lend support to the Nexus launch, despite Google’s introduction of a direct-to-consumer sales approach, but there was always a sense that their backing was grudging - and largely based on a fear of losing out, should the phone prove as wildly popular as some analysts predicted.

Their main qualms would have surrounded the route to market. Google offered the device, with a selection of carrier deals, from its own specially created web store. In some ways this was no different to an Amazon approach, but it was widely seen as the thin end of the wedge, in Google’s avowed bid to relegate the operators to bitpipe roles and put its own brand center stage. Cellcos will have heaved a sigh of relief that uptake of the Nexus was disappointing in the early stages, and that other handsets with similar capabilities quickly came along - notably the Desire from HTC, which also makes Nexus. Both these options offer Android 2.1, gigahertz Snapdragon processors and other attractions, though the Desire has been more acclaimed for its user experience.

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