Nexus One sale can improve: analyst Mark Mahaney
www.WirelessFederation.com/news: Even though the much hyped invention of Google, Nexus One, failed miserably to have a rocking sale, analyst still believe that it can increase its sale by rethinking its approach to the mobile market. 1-3 million Nexus One handsets could be sold by the company which is also far less than Apple’s sale of 5.4 million iPhones in its first year, and Motorola Droid shipments which could reach 7.5 million in its first year.
Non availability of Nexus One in the stores, poor marketing and the fact that it’s only on T- Mobile are cited as some of the reasons behind the poor sale of the device.
According to Citigroup analyst Mark Mahaney, Google only makes approximately $70 per sale, which means Nexus One sales will kick in $500 million to $1.6 billion in revenue and 10%-15% operating margin means the Nexus One could generate between $0.12 and $0.55 in incremental EPS.
Nexus One price lowered by Google
www.WirelessFederation.com/news: While the price of Google’s Nexus phone has been lowered by $100, eBay is planning to sell it for much more. Google has kept the cost of the completely unattached, unlocked version at $529. But T-Mobile customers eligible for a phone upgrade can have it for $279 from $379. And those who sign up for new two-year T-Mobile contracts can buy the handset for $179.
According to Google, those without data plans were paying $279 for the Nexus One, and those with data plans were being charged $379. The company after working with T-Mobile is now able to offer the higher upgrade discount to all existing fully eligible T-Mobile subscribers.
eBay on the other hand is optimistic to resell the phone for between $300 to $1,000.
Nexus One price drop upgraded by $100 by T- Mobile
www.WirelessFederation.com/news: The pricing policy of T-Mobile has allegedly been changed for all the existing customers purchasing Google’s Nexus One smartphone. Currently, the unlocked version of the handset is offered for $530 or for $180 when subsidized through T-Mobile for new customers.
To get the phone even with upgrade eligibility, existing subscribers have been forced to pay $380. Any customer who paid $380 for the Nexus One would be refunded $100 by T- Mobile which will help it to quell further criticism. . The price change will be effective beginning Friday and within 14 business days, the refunds will be issued.
Only 20,000 Nexus One phones sold in its first week
www.WirelessFederation.com/news: The sparkling launch of Google’s Nexus One has not been able to compliment its sale as only 20,000 handsets have been sold in its first week. The sale could not gear up even after the company created a plenty of hype during the launch like putting an ad on its homepage, and spraying its ads all over the web.
Droid which sold 250,000 units in its opening week, outsold the Nexus One by more than 12 times and the myTouch 3G, with 60,000 units outsold it by 3 times. Nexus One is staggeringly outsold by iPhone 3GS which sold 1.6 million units in its opening week.
Even a new retail model of Google with its online store will take time to draw in customers. The launch of the phone after Christmas also affected its sale as all those people thinking to buy a smartphone bought them in December itself.
Wireless business model unlikely to be affected by Nexus One
www.WirelessFederation.com/news: Wireless business model of carrier-device monogamy in the US is unlikely to break up by the selling of Nexus One smartphone directly to consumers by Google. According to Allen Nogee, principal analyst at In-Stat, the operators would continue to have control not only because of pricing and subsidization but also because they all use different frequencies and technologies.
The fairly limited spectrum in the US could also be blamed for the scenario. Nexus One is incompatible with 1900 MHz band used by Verizon Wireless, AT&T and Sprint for their 3G networks. Unlocked or carrier-neutral Nexus One cost $529 when bought directly from Google.
T-Mobile contract on the other hand cuts that down to $179 and guarantees the phone will work on its network.
Nexus users complain of connectivity problems
www.WirelessFederation.com/news: After a grand launch of its Nexus Phone a week back, it’s time for Google to get prepared for some backlash as the users of this trendy handset are having a tough time to connect to T-Mobile USA’s 3G networks.
In addition, users are required to file their complaint via email even as it warns that a personal response isn’t likely.
More than 500 comments have been attracted by the spotty 3G reception on Google’s support forum. Google along with its partner HTC has got a major issue in the form of connectivity problems. Many bloggers have questioned whether Google can continue to sell phones without providing the kind of personalized customer support they are used to.
T-Mobile UK, 3UK in discussion to sell Google’s Nexus One
www.WirelessFederation.com/news: Confirming the discussion over the sale of Google’s first own-branded Android smartfone, Nexus One, in the UK, the spokesmen of T-Mobile and 3 UK informed that the companies will be making a formal announcement soon.
According to the Head of Internet services at 3UK, David Kerrigan, T-mobile is a great internet phone and the company expects plenty of people to import it to UK.
On Tuesday Google launched Nexus One, its new Android powered and HTC made handset. Nexus one will be available to consumers directly from Google unlike other Smartphone’s running the Internet giant’s mobile OS.
In US, SIM- free Nexus One is available for $529 and for $179 on T- Mobile USA. A CDMA version of the phone is also heading to Verizon Wireless, while Vodafone will offer the device in Europe from spring 2010. Vodafone is yet to announce the launch date however a spokesman of the company informed that it will offer the Nexus One to UK consumer first.
Meanwhile O2 UK stated that it had no plans to sell Nexus One. Despite Google was offering to ship Nexus One SIM-free internationally, O2 did not sound keen on the idea.
31% decrease in HTC’s Q4 profit
www.WirelessFederation.com/news: Due to intense market competition, HTC’s Q4 net profit fell 31% year-on-year. A net profit of TW$5.58 billion ($175.4 million), compared to profit of TW$8.1 billion a year ago has been recorded by the company. Net profit of TW$5.58 billion ($175.4 million), compared to profit of TW$8.1 billion a year ago and lower than analysts’ expectations of TW$7.18 billion has been recorded by the company.
Net profit of NT$22.65 billion, from revenue of NT$144.89 billion was recorded by HTC for the full year but in November, revenue fell 13.2% to NT$41.08 billion.
However, Google’s recently-launched Nexus One handset developed by HTC has helped to improve the company’s fortune. But it has also been warned that HTC could accrue lower profit margins from the handsets and its lower price relative to most of HTC’s current smartphone offerings could also serve to drive down prices across HTC’s range.
Nexus One domain registration neglected by Google
www.WirelessFederation.com/news: Even after a stunning entry into the global media with the launch of its Nexus One, the new smartphone’s .com domain is still beyond its reach. A massive e-tailing initiative for its smartphone range has been launched by Google and google.com site is currently selling its Nexus One.
According to business development director of domain name registration company Sedo, Nora Nanayakkara, Google needs to carefully assess the use of direct navigation domain names in ensuring positive uptake of the device, as it is offering handsets directly to consumers.
If it does not utilize the type-in traffic of domain names completely, it will potentially miss out on large volumes of consumers looking for information on the new handset.
