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Wednesday, February 10, 2010

Distribution of Nexus One - Another disruptive approach from Google

Google has always been a successful (I believe so!! ) innovator in terms of its product offerings. However, will Google's approach to the distribution of it's Nexus One turn out promising?

When consumers are paying $500 for a handset, the least that they can ask for is a chance to hold it in their hands and to play around with the features before making a decision. But Google is trying to redefine the distribution by putting Nexus up for online-only sales. Google hasn't stopped there, but has also allowed the user to buy the handset and then choose the carrier/plan they want (excluding AT&T of course).

It is clear that Google has taken the second big step toward shifting power from the carriers to device manufacturers, after Apple. Nexus sales* so far doesn't look promising (when compared to Droid and MyTouch 3G) and raises questions whether Google has taken the correct decision. But I feel that Google was quite aware of the implications of its new approach and that this decision is part of their long term strategy and vision. Google is all about reaching out directly to its customers and eliminating any opportunity for a third party to have a control on the way customers use its products and services.

In the down side, Google is inviting anti-trust law suits (imagine a Google world where you have a Nexus One powered by Android in your hand and you manage your data, appointments, contacts, social networks with Google Docs, Calendar, gmail, Buzz etc. - sounds like another Microsoft in mobile version). I'm wondering what Google's next big plan might be - a netbook? may be/may be not - I welcome your thoughts on this.

* This article is an interview with the President of Marketing at Flurry, a mobile analytics company that uses software embedded in applications to track handset sales.

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