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Nexus One Reports Weak Sales for First Week Out



The Mobile research firm Flurry this week estimated that the Nexus One,  failed to have a strong debut, despite all the buzz that surrounded its announcement. The 20,000 week one sales fell far behind Apples iPhone which sold an estimated 1.6 million 3GS handsets in June.  However, Apple’s iPhone handset was a third-generation product selling in eight countries, while the Nexus One was a first-generation handset on sale in just the U.S.

With that said, the Android myTouch 3G and Motorola Droid were also first-generation hadsets with U.S.-only launches, and both had sales much stronger than the Nexus One.  The myTouch 3G sold over 60,000 in its first week, while the Motorola Droid sold over 250,000 units.

Nexus One was outsold three times by the myTouch 3G, 12 times by the Droid, and 80 times by the iPhone 3GS, Flurry noted there are key differences.  The Motorola Droid debuted with a $100 million marketing campaign, and even the myTouch 3G was heavily promoted on television by carrier T-Mobile.  By comparison, Google’s device launched after the holiday season and is marketing and selling the device through its own ‘Monster’ Web site.

Analysis noted that “While Google, avoided channel conflict with T-Mobile, it appears to have set the direct-to-consumer price for the handset at over $500 dollars, the high price combined with the fact that the device is only considered an ‘evolutionary’ improvement over previous Android devices, indicates that Google did not take the neccesary steps to maximize first week sales,”.
“Perhaps one would consider that among the most expensive costs associated with the launch -enough marketing- has not been incurred, and could have been applied to lowering the direct-to-consumer price.”

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