Google Nexus One Changes Business Model, stops selling handsets online

May 14, 2010 - Written By Chris Yackulic

As we broke the story yesterday Google today announced that they no longer are going to be selling The Nexus One through their website and is in the process of making their phones available through the normal retail sales model that is the norm for purchasing phones.This confirmed our story yesterday that Google had pulled their original plan to make the phone available to the carriers via their website.Now customers will be able to buy their phone at their favorite carriers retail outlet.Is very obvious that the The Nexus One was not selling the way it should have and was no longer fiscally proper to continue.Below is the official word from Andy Rubin VP of Engineering for Google.

We launched Nexus One in January with two goals in mind: to introduce a beacon of innovation among Android handsets, and to make it quick and easy for people to buy an Android phone. We’re very happy with the adoption of Android in general, and the innovation delivered through Nexus One. Already, a lot of the innovation that went into creating Nexus One has found its way into numerous Android handsets, like the HTC Evo 4G from Sprint and the Verizon Droid Incredible by HTC.

But, as with every innovation, some parts worked better than others. While the global adoption of the Android platform has exceeded our expectations, the web store has not. It’s remained a niche channel for early adopters, but it’s clear that many customers like a hands-on experience before buying a phone, and they also want a wide range of service plans to chose from.

So today we’re announcing the following changes:

More retail availability. As we make Nexus One available in more countries we’ll follow the same model we’ve adopted in Europe, where we’re working with partners to offer Nexus One to consumers through existing retail channels. We’ll shift to a similar model globally.

From retail to viewing. Once we have increased the availability of Nexus One devices in stores, we’ll stop selling handsets via the web store, and will instead use it as an online store window to showcase a variety of Android phones available globally.

Innovation requires constant iteration. We believe that the changes we’re announcing today will help get more phones to more people quicker, which is good for the entire Android ecosystem: users, partners and also Google.

Posted by Andy Rubin, VP, Engineering