5 ms·

The end of the road for the Nexus One

24 points by corbet 16y ago

bd_at_rivenhill 16y ago
It is an expensive device - on the face of it, rather more so than a shiny new iPhone 4, and it doesn't even come with a free case. +1 for taking a cheap shot at Apple.
- dazzla 16y ago
  But it does come with a free case. I really nice neoprene one right in the box from day 1.
- listic 16y ago
  I wonder, do phone users in the USA really fall for this trick of hiding most of the price of handset into recurring payments? (so that an iPhone is perceived to be a $199 phone instead of a $1000 phone which it really is) When the carriers tried this scheme in Russia upon the introduction of iPhone, it was a failure. Carriers developed different tiered plans, specifically for the iPhone, but I guess this simple trickery just couldn't hide the fact that it is a $1000 handset, and there just isn't that large market here for that. (Mind you, I think the 6-figure sales were good, just not up to Apple's expectations of selling millions of devices)
  - drivebyacct2 16y ago
    I both understand and don't understand your sentiment. I had two options. Buy my phone outright for $600. Pay $10 + $30 a month for the line and data. OR. Buy my phone for $200 and sell my soul to Verizon for 24 months. Pay $10 + $30 a month for the line and data. I plan on being with Verizon for the foreseeable future. Why would I not choose the subsidized phone?
    - tortilla 16y ago
      The only major US carrier that I know of that gives a discount on monthly plans when you bring your own phone is T-Mobile.
    - Tichy 16y ago
      At least in Germany it is very different. You can get cheaper rates if you bring your own hardware (in fact, my base rate is 0€ and I can also quit at any time). That seems the way it should be. I can see how from US perspective the calculations don't make sense. But then that seems as if mobile operators would be conspiring to make iPhones the only attractive devices?
      - drivebyacct2 16y ago
        Right, but if you just get a plan with a German carrier w/o your own hardware, do you buy it outright or do you get it free and it's added into each monthly bill. If it's the latter, it makes complete sense. Plenty of people can't afford to go throw down $500 at a time. It's the same as any other subsidized or installed-payments model...
        Tichy 16y ago
        You can buy phones without signing up with a mobile provider. If you want to buy the phone from the provider, they'll usually offer you the subsidies. The big providers don't make it very open that you can actually get a plan without buying hardware. If people want to go the subsidization route, whatever (I personally happen to think that if you can't afford 500$, maybe you shouldn't buy the hardware - get a 50$ feature phone instead). It just irks me if people think they are getting something for free. I hear "phone x costs 0€ at provider x" all the time, so people definitely don't understand this. My personal take is to avoid the maze of operator prizing completely (50 free minutes between 9am and 11am, but double prize on weekends, except for SMS which are free on a full moon), so I only sign up for plans that I can quit at any time, and with the lowest recurring fee possible.
    - stanleydrew 16y ago
      >Why would I not choose the subsidized phone? Because there is an implicit cost to being in a contract. It restricts your choices. I know you plan on being with Verizon for the forseeable future, but things change quickly in the world of mobile devices. Also, people move for jobs, school, family reasons, etc, and service quality isn't consistent even on Verizon. For some people it's worth $400 to avoid having their decisions restricted by a contract.
      - glhaynes 16y ago
        But that's $400 of guaranteed cost vs. an early termination fee (usually around $300, I think?) that you very likely won't have to pay.
        detst 16y ago
        A termination fee that decreases with time. It makes no sense to pay full-price for a phone in the USA.
      - jemfinch 16y ago
        > Because there is an implicit cost to being in a contract. It restricts your choices. Given the balkanization of cell phone hardware in the US (i.e., most phones only work on one carrier) is this really a factor?
    - listic 16y ago
      I was thinking that you end up paying more for the service when you buy subsidized phone. I was implying that you can choose between paying-as-you-go when buying phone without contract and paying flat rate when you get contract and subsidized phone. So you spend extra money because (a) you end up paying more for the service you receive (voice talk minutes, SMS, data) and (b) flat rate plan includes more service than you would use paying-as-you-go. At least, that's how things are here in Russia. Now I see the options in the US are not what I thought. While you get bound by contract, at least the subsidies are real. As I understand, you normally use flat rate data plans regardless of when you are on contract or not. Are there options for paying for what you use? Are they widely used? Though I understand the reason to have unlimited data on a modern smartphone, paying-as-you-go (and prepaid) is what they normally use here, and I suspect most people will spend less than $40/month using a smartphone. If they make you pay for what you won't otherwise use, you can still count it as a tax for your "subsidy"
  - pretz 16y ago
    Yes they do, because they don't have a choice. If I pay $570 for an unlocked Nexus One to use on AT&T's network, I still pay the same monthly service price as my friend who bought a $99 subsidized iPhone. I get no advantage for my nice unlocked unsubsidized phone when the current pricing model is based exclusively around subsidized handsets.
    - rbranson 16y ago
      T-Mobile has significantly reduced prices for their "Even More Plus" plans which do not include subsidized phones. This is saving me about $20/mo on my Nexus One, which I purchased for the heart-palpitatingly low price of $529. If I keep it for 18 months, I'll get back around $350. Unlike my G1, which was slow and had poor battery life from the beginning, the N1 is a fantastic phone from the start. I can definitely see myself keeping it for more than 18 months.
      - lutorm 16y ago
        I'm in the same boat. Not to mention that the plan that you get with the subsidized N1 on Tmo is not only more expensive but it's (of course) also the gold-plated "unlimited everything" that most people probably don't need.
  - silvestrov 16y ago
    It seems like users in USA thinks of phones as something they rent, not something they buy. In Denmark the carriers must show the "minimum total price": the sum of the upfront price and the monthly payments until you can cancel the contract (incl. termination fee). This law was introduced in 2005 to provide greater transparency of the real price for consumers. See "min. pris" on http://www.3.dk/Privat/mobil/Mobiler/Wildfire/ http://www.3.dk/Privat/mobil/Mobiler/Wildfire/ upfront = 200 DKK (1 + 199); 399 DKK pr month; so total price = 2594 DKK ~ $453.
    - Tichy 16y ago
      What difference does it make if they see it as something they rent vs something they buy? In the end, there is a total sum that will come out of their pockets. What is your price for - the N1?
      - silvestrov 16y ago
        The difference is: 1) how much they expect to pay monthly after the initial months where you are bound to the contract (6 in Denmark, 24 in USA), 2) you can bring your own phone and start out with the lower monthly price, 3) you can buy a new phone without any changes to your contract, 4) and it is much more visible what it will cost you if you loose your phone, and how much you will save if you keep it more than 6 (24) months. Google did not officially sell Nexus One in Denmark, the only price I can find online is ~$420 excl VAT. (BTW the $453 price above for Wildfire is incl VAT and is $362 without).
    - deleted 16y ago
      [deleted]
  - jonknee 16y ago
    The problem is you don't [usually] get a discount for bringing your own hardware to the party. All you get out of it is the ability to switch, but the subsidy runs about the same cost as the early termination fee, so that benefit isn't all that huge. If you don't switch during the contract period it ends up being a great deal.
  - ROFISH 16y ago
    It's because in the USA, there's no benefit to buying a phone without a contract; you're still going to pay the same monthly rate. There may be deals for employee plans, discounts, or bargaining with the clerk, but for 90%, we just might as well get the $199 iPhone with the outrageous phone plan because we were already going to get an outrageous phone plan no matter what phone you get.
    - Zaak 16y ago
      T-Mobile now offers a lower monthly rate without a contract. As far as I know it's the only carrier to do so.
  - orangecat 16y ago
    I wonder, do phone users in the USA really fall for this trick of hiding most of the price of handset into recurring payments? Yes. The best example was when Apple announced the iPhone 3G, and everyone was thrilled with the price "cut" from $400 to $200. A few people tried to point out that AT&T's rates had simultaneously gone up thereby making it more expensive over the 2 year contract, but they were largely ignored. The US would be in far better shape if students were required to explain net present value before receiving a high school diploma.
  - detst 16y ago
    > I wonder, do phone users in the USA really fall for this trick of hiding most of the price of handset into recurring payments? But that's not what happens here. There's no hiding of fees when I will pay the same base price regardless of phone (smartphone or otherwise) and will pay the same data charges regardless of which smartphone or whether I brought the phone with me or got it subsidized. You are just throwing money away if you don't take the subsidy. Early termination fees decrease over the contract and are less than the subsidy to begin with. Most people will stay with their provider and you're better off paying the termination fees even if you think you might not. The reality here really is $199. Basically this translates into not being able to get a really cheap plan for minimal usage short of going the pre-paid route. While not much to be happy about as a consumer, at least rates to mobile phones are reasonable here; look at VoIP rates to mobiles around the world (usually 5-10x higher).
Tichy 16y ago
Vodafone in Germany is supposed to sell N1, only they are out of stock and have problems getting enough of them to satisfy orders. The Vodafone N1 might not be as open as the Google N1, though :-( The other day I had a crazy idea: what if some hardware maker would just create a good phone and leave it to customers and vendors to decide what operating system they want? Most probably wouldn't bother, but it might make for a better feeling? For example, I don't think many Mac users actually use Bootcamp to run Windows on their Macs, but I suspect a lot of people felt more confident to switch to Macs given they had the option to revert to Windows at any time.
- ZeroGravitas 16y ago
  The UK Vodafone Nexus is (surprisingly, given my previous experience with Vodafone) as open the ones bought direct from Google in the US.
risotto 16y ago
Another point with the N1 end is that it is the only phone running Android 2.2 (without hacked roms). This means that there are no phones a customer can buy to get Android 2.2 now. Android is a great platform and I've been seeing more and more of them in the hands of people in the wild. But it's still a battle to tame the cell phone market as well as compete in the luxury smart phone category that Apple has captured.
- igorgue 16y ago
  People use Android phones without even knowing it has Android on it!, I think that's the ultimate goal, like Linus says: The OS should be invisible to the user.
  - rbranson 16y ago
    This is part of what makes Android marketing so challenging. You've got Samsung, Motorola, HTC, etc adding their own flavor to the OS on top of multiple handset vendors with a variety of devices. Nobody knows they run "iOS" on their iPhone, but in order to make an informed comparison of Android devices, they must be familiar with the OS.
- ZeroGravitas 16y ago
  It's the only phone running 2.2 (without community support) right now. There's plenty of phones that you can buy right now that have 2.2 upgrades in the pipeline, and you can still buy the Nexus one in many countries other than the US.
alain94040 16y ago
Promotion of the Nexus One was minimal and, seemingly, limited to Google's advertising network Considering that it was featured on Google's home page like no product ever before, I wouldn't call that minimal.
- elblanco 16y ago
  Perhaps a better question is "if the N1 failed, being promoted on Google's ad network, how good is Google's ad network?"
- krzyk 16y ago
  Wasn't Motorola Droid also on Google homepage?
ronaldj 16y ago
I would've bought one if they released it for Verizon.
dlsspy 16y ago
I'm really happy with my Nexus One. It's a shame these aren't in more people's hands.

24 points by corbet 16y ago

It is an expensive device - on the face of it, rather more so than a shiny new iPhone 4, and it doesn't even come with a free case. +1 for taking a cheap shot at Apple.

dazzla 16y ago
But it does come with a free case. I really nice neoprene one right in the box from day 1.
listic 16y ago
I wonder, do phone users in the USA really fall for this trick of hiding most of the price of handset into recurring payments? (so that an iPhone is perceived to be a $199 phone instead of a $1000 phone which it really is) When the carriers tried this scheme in Russia upon the introduction of iPhone, it was a failure. Carriers developed different tiered plans, specifically for the iPhone, but I guess this simple trickery just couldn't hide the fact that it is a $1000 handset, and there just isn't that large market here for that. (Mind you, I think the 6-figure sales were good, just not up to Apple's expectations of selling millions of devices)
- drivebyacct2 16y ago
  I both understand and don't understand your sentiment. I had two options. Buy my phone outright for $600. Pay $10 + $30 a month for the line and data. OR. Buy my phone for $200 and sell my soul to Verizon for 24 months. Pay $10 + $30 a month for the line and data. I plan on being with Verizon for the foreseeable future. Why would I not choose the subsidized phone?
  - tortilla 16y ago
    The only major US carrier that I know of that gives a discount on monthly plans when you bring your own phone is T-Mobile.
  - Tichy 16y ago
    At least in Germany it is very different. You can get cheaper rates if you bring your own hardware (in fact, my base rate is 0€ and I can also quit at any time). That seems the way it should be. I can see how from US perspective the calculations don't make sense. But then that seems as if mobile operators would be conspiring to make iPhones the only attractive devices?
    - drivebyacct2 16y ago
      Right, but if you just get a plan with a German carrier w/o your own hardware, do you buy it outright or do you get it free and it's added into each monthly bill. If it's the latter, it makes complete sense. Plenty of people can't afford to go throw down $500 at a time. It's the same as any other subsidized or installed-payments model...
      - Tichy 16y ago
        You can buy phones without signing up with a mobile provider. If you want to buy the phone from the provider, they'll usually offer you the subsidies. The big providers don't make it very open that you can actually get a plan without buying hardware. If people want to go the subsidization route, whatever (I personally happen to think that if you can't afford 500$, maybe you shouldn't buy the hardware - get a 50$ feature phone instead). It just irks me if people think they are getting something for free. I hear "phone x costs 0€ at provider x" all the time, so people definitely don't understand this. My personal take is to avoid the maze of operator prizing completely (50 free minutes between 9am and 11am, but double prize on weekends, except for SMS which are free on a full moon), so I only sign up for plans that I can quit at any time, and with the lowest recurring fee possible.
  - stanleydrew 16y ago
    >Why would I not choose the subsidized phone? Because there is an implicit cost to being in a contract. It restricts your choices. I know you plan on being with Verizon for the forseeable future, but things change quickly in the world of mobile devices. Also, people move for jobs, school, family reasons, etc, and service quality isn't consistent even on Verizon. For some people it's worth $400 to avoid having their decisions restricted by a contract.
    - glhaynes 16y ago
      But that's $400 of guaranteed cost vs. an early termination fee (usually around $300, I think?) that you very likely won't have to pay.
      - detst 16y ago
        A termination fee that decreases with time. It makes no sense to pay full-price for a phone in the USA.
    - jemfinch 16y ago
      > Because there is an implicit cost to being in a contract. It restricts your choices. Given the balkanization of cell phone hardware in the US (i.e., most phones only work on one carrier) is this really a factor?
  - listic 16y ago
    I was thinking that you end up paying more for the service when you buy subsidized phone. I was implying that you can choose between paying-as-you-go when buying phone without contract and paying flat rate when you get contract and subsidized phone. So you spend extra money because (a) you end up paying more for the service you receive (voice talk minutes, SMS, data) and (b) flat rate plan includes more service than you would use paying-as-you-go. At least, that's how things are here in Russia. Now I see the options in the US are not what I thought. While you get bound by contract, at least the subsidies are real. As I understand, you normally use flat rate data plans regardless of when you are on contract or not. Are there options for paying for what you use? Are they widely used? Though I understand the reason to have unlimited data on a modern smartphone, paying-as-you-go (and prepaid) is what they normally use here, and I suspect most people will spend less than $40/month using a smartphone. If they make you pay for what you won't otherwise use, you can still count it as a tax for your "subsidy"
- pretz 16y ago
  Yes they do, because they don't have a choice. If I pay $570 for an unlocked Nexus One to use on AT&T's network, I still pay the same monthly service price as my friend who bought a $99 subsidized iPhone. I get no advantage for my nice unlocked unsubsidized phone when the current pricing model is based exclusively around subsidized handsets.
  - rbranson 16y ago
    T-Mobile has significantly reduced prices for their "Even More Plus" plans which do not include subsidized phones. This is saving me about $20/mo on my Nexus One, which I purchased for the heart-palpitatingly low price of $529. If I keep it for 18 months, I'll get back around $350. Unlike my G1, which was slow and had poor battery life from the beginning, the N1 is a fantastic phone from the start. I can definitely see myself keeping it for more than 18 months.
    - lutorm 16y ago
      I'm in the same boat. Not to mention that the plan that you get with the subsidized N1 on Tmo is not only more expensive but it's (of course) also the gold-plated "unlimited everything" that most people probably don't need.
- silvestrov 16y ago
  It seems like users in USA thinks of phones as something they rent, not something they buy. In Denmark the carriers must show the "minimum total price": the sum of the upfront price and the monthly payments until you can cancel the contract (incl. termination fee). This law was introduced in 2005 to provide greater transparency of the real price for consumers. See "min. pris" on http://www.3.dk/Privat/mobil/Mobiler/Wildfire/ http://www.3.dk/Privat/mobil/Mobiler/Wildfire/ upfront = 200 DKK (1 + 199); 399 DKK pr month; so total price = 2594 DKK ~ $453.
  - Tichy 16y ago
    What difference does it make if they see it as something they rent vs something they buy? In the end, there is a total sum that will come out of their pockets. What is your price for - the N1?
    - silvestrov 16y ago
      The difference is: 1) how much they expect to pay monthly after the initial months where you are bound to the contract (6 in Denmark, 24 in USA), 2) you can bring your own phone and start out with the lower monthly price, 3) you can buy a new phone without any changes to your contract, 4) and it is much more visible what it will cost you if you loose your phone, and how much you will save if you keep it more than 6 (24) months. Google did not officially sell Nexus One in Denmark, the only price I can find online is ~$420 excl VAT. (BTW the $453 price above for Wildfire is incl VAT and is $362 without).
  - deleted 16y ago
    [deleted]
- jonknee 16y ago
  The problem is you don't [usually] get a discount for bringing your own hardware to the party. All you get out of it is the ability to switch, but the subsidy runs about the same cost as the early termination fee, so that benefit isn't all that huge. If you don't switch during the contract period it ends up being a great deal.
- ROFISH 16y ago
  It's because in the USA, there's no benefit to buying a phone without a contract; you're still going to pay the same monthly rate. There may be deals for employee plans, discounts, or bargaining with the clerk, but for 90%, we just might as well get the $199 iPhone with the outrageous phone plan because we were already going to get an outrageous phone plan no matter what phone you get.
  - Zaak 16y ago
    T-Mobile now offers a lower monthly rate without a contract. As far as I know it's the only carrier to do so.
- orangecat 16y ago
  I wonder, do phone users in the USA really fall for this trick of hiding most of the price of handset into recurring payments? Yes. The best example was when Apple announced the iPhone 3G, and everyone was thrilled with the price "cut" from $400 to $200. A few people tried to point out that AT&T's rates had simultaneously gone up thereby making it more expensive over the 2 year contract, but they were largely ignored. The US would be in far better shape if students were required to explain net present value before receiving a high school diploma.
- detst 16y ago
  > I wonder, do phone users in the USA really fall for this trick of hiding most of the price of handset into recurring payments? But that's not what happens here. There's no hiding of fees when I will pay the same base price regardless of phone (smartphone or otherwise) and will pay the same data charges regardless of which smartphone or whether I brought the phone with me or got it subsidized. You are just throwing money away if you don't take the subsidy. Early termination fees decrease over the contract and are less than the subsidy to begin with. Most people will stay with their provider and you're better off paying the termination fees even if you think you might not. The reality here really is $199. Basically this translates into not being able to get a really cheap plan for minimal usage short of going the pre-paid route. While not much to be happy about as a consumer, at least rates to mobile phones are reasonable here; look at VoIP rates to mobiles around the world (usually 5-10x higher).

Tichy 16y ago

Vodafone in Germany is supposed to sell N1, only they are out of stock and have problems getting enough of them to satisfy orders. The Vodafone N1 might not be as open as the Google N1, though :-( The other day I had a crazy idea: what if some hardware maker would just create a good phone and leave it to customers and vendors to decide what operating system they want? Most probably wouldn't bother, but it might make for a better feeling? For example, I don't think many Mac users actually use Bootcamp to run Windows on their Macs, but I suspect a lot of people felt more confident to switch to Macs given they had the option to revert to Windows at any time.

ZeroGravitas 16y ago
The UK Vodafone Nexus is (surprisingly, given my previous experience with Vodafone) as open the ones bought direct from Google in the US.

risotto 16y ago

Another point with the N1 end is that it is the only phone running Android 2.2 (without hacked roms). This means that there are no phones a customer can buy to get Android 2.2 now. Android is a great platform and I've been seeing more and more of them in the hands of people in the wild. But it's still a battle to tame the cell phone market as well as compete in the luxury smart phone category that Apple has captured.

igorgue 16y ago
People use Android phones without even knowing it has Android on it!, I think that's the ultimate goal, like Linus says: The OS should be invisible to the user.
- rbranson 16y ago
  This is part of what makes Android marketing so challenging. You've got Samsung, Motorola, HTC, etc adding their own flavor to the OS on top of multiple handset vendors with a variety of devices. Nobody knows they run "iOS" on their iPhone, but in order to make an informed comparison of Android devices, they must be familiar with the OS.
ZeroGravitas 16y ago
It's the only phone running 2.2 (without community support) right now. There's plenty of phones that you can buy right now that have 2.2 upgrades in the pipeline, and you can still buy the Nexus one in many countries other than the US.

alain94040 16y ago

Promotion of the Nexus One was minimal and, seemingly, limited to Google's advertising network Considering that it was featured on Google's home page like no product ever before, I wouldn't call that minimal.

elblanco 16y ago
Perhaps a better question is "if the N1 failed, being promoted on Google's ad network, how good is Google's ad network?"
krzyk 16y ago
Wasn't Motorola Droid also on Google homepage?

ronaldj 16y ago

I would've bought one if they released it for Verizon.

dlsspy 16y ago

I'm really happy with my Nexus One. It's a shame these aren't in more people's hands.