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Correct. Google drastically overpriced the phone. As others have pointed out, signing up for a multi year contract in exchange isn't really a bad deal unless

Correct. Google drastically overpriced the phone. As others have pointed out, signing up for a multi year contract in exchange isn't really a bad deal unless you wanted out of the contract sooner (and even then it's not too bad). I had expected Google to sell the phone over the web for $99 with no contract. That would have been the sort of bold, gutsy move that Google needs to do to change the mobile phone market. It seems that Google is actually looking to get a piece of the existing pie and doesn't care about changing the way phones are sold.

orangecat 17y ago
Google drastically overpriced the phone. The Nexus One is cheaper than a contract free (but still locked!) iPhone 3GS. Their "mistake" was being honest about the price, and not explaining how it would more than pay for itself in lower monthly charges if you used T-Mobile's non-contract rates. Even that may not have worked, because consumers are generally really bad at math.
- grandalf 17y ago
  Perhaps. But just as Google offers gmail for free I think it would have been possible to design a business model that allowed the phone to be sold at a discount without a contract. I think Google's pricing was targeted at investors (as in look, we can get top dollar for a phone just like Apple) rather than at consumers who would happily give Google lots of behavioral data for ads in exchange for a discounted phone.
- vetinari 17y ago
  Unsubsidized Nexus One from Google = 600 EUR. Unsubsidized HTC Desire from local brick and mortar store = 400 EUR. So I guess that the opinion 'Google drastically overpriced the phone.' is still valid.
eli 17y ago
Really Google suffered from not putting an end to those ridiculous $99 phone pre-launch rumors. It was not reasonable to expect them to sell a phone at a huge loss per device just to expand the reach of their platform.

orangecat 17y ago

Google drastically overpriced the phone. The Nexus One is cheaper than a contract free (but still locked!) iPhone 3GS. Their "mistake" was being honest about the price, and not explaining how it would more than pay for itself in lower monthly charges if you used T-Mobile's non-contract rates. Even that may not have worked, because consumers are generally really bad at math.

grandalf 17y ago
Perhaps. But just as Google offers gmail for free I think it would have been possible to design a business model that allowed the phone to be sold at a discount without a contract. I think Google's pricing was targeted at investors (as in look, we can get top dollar for a phone just like Apple) rather than at consumers who would happily give Google lots of behavioral data for ads in exchange for a discounted phone.
vetinari 17y ago
Unsubsidized Nexus One from Google = 600 EUR. Unsubsidized HTC Desire from local brick and mortar store = 400 EUR. So I guess that the opinion 'Google drastically overpriced the phone.' is still valid.

eli 17y ago

Really Google suffered from not putting an end to those ridiculous $99 phone pre-launch rumors. It was not reasonable to expect them to sell a phone at a huge loss per device just to expand the reach of their platform.