Analysis - Was Google expecting to sell many Nexus Ones?

[HEXUS]

It looks like the Google phone is selling at a much slower rate than expected, but maybe that?s what Google wanted.

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[nichomach]

Well, they haven't risked much in terms of promotion - the press has been doing all that for them for months without any input from Google other than "Look! We're making a phone - maybe" and "Look! We're making a phone - definitely". Hardware development costs aren't that high - it's another HTC smartphone, just rebranded, so really no more work than HTC have done on various Winmobes for operators like O2 and AT&T. It's a capable, well made device, although I'd argue no more so than other 'droid phones that have been released, and it's probably already well in excess of covering its cost. Even if it is just a technology demo, it's likely to be a profitable one.

[Stringent]

Don't forget that its not widely available or subsidized by many networks. You either have to be in the US to get it on a contract, or buy the phone outright. Despite the charges operators now throw and lock you into when buying a state of the art (so called) smart phone, like 24month contracts, people still go after 'free phone'. If this was free and more widely available then I think the uptake would be quicker and more purchases. But considering you pay around £450ish for the privilege, a lot of people will be put off by that.

However I am guessing Google did it this way as they are slowly introducing themselves into the market. Sort of testing the water, build up relationships before they do make the Nexus One or even their next phone whatever whenever that is more accessible.