Verizon’s Nexus One Dead?

In January, Google confirmed the arrival of its highly anticipated phone, the Nexus One.  Available on T-Mobile initially, then on Verizon this spring, the Android based device was Google’s first foray into selling its own device, rather than just its OS.  It was a dramatic shift from Google as software to Google as hardware, and techies were split as to if this was a good thing for the industry.

Popular tech blog Engadget is reporting that Verizon will not be getting the Nexus One.  In a recent post, they say, “We just heard back from Google — the Verizon Nexus One is dead; long live the Incredible.”  Google’s official statement:

We won’t be selling a Nexus One with Verizon, and this is a reflection of the amazing innovation happening across the open Android ecosystem. Verizon Wireless customers who want an Android phone with the power of the Nexus One can get the Droid Incredible by HTC.

So what does this mean?  Except for the fact that Verizon will not be getting a Nexus One, it’s anyone’s guess.  When I first read the story, I thought that maybe Google was getting out of the hardware business.  But according to the Nexus One site,  Vodafone is now accepting pre-orders for the device, and it still looks to be available for T-Mobile.  Perhaps there were contract negotiations that broke down, but Verizon is still offering the Incredible.  I’ll take a chance and suggest that the US cellular market is now saturated, as clearly shown in recent earnings releases.  Verizon netted only 423,000 wireless customers under contract in the first quarter, the lowest number in nearly a decade, and far below expectations.  AT&T did better, but still just north of 500,000 subs.  Since all eyes are on Google, they don’t want to out of the gate with lackluster sales.  Given that both the Nexus One and Incredible are manufactured by HTC, why have the two compete with each other in this very mature market?

But then again, maybe it was because they couldn’t fix the 3G coverage issues.  In a support forum posting on April 21st, a Google Employee states:

Hey guys,

I’ve seen some recent speculation on this thread about an OTA to improve 3G connectivity and I want to give you an update on the situation. While we are continuing to monitor user feedback regarding the 3G performance on the Nexus One, we are no longer investigating further engineering improvements at this time.  If you are still experiencing 3G issues, we recommend that you try changing your location or even the orientation of your phone, as this may help in areas with weaker coverage.

I mean, really?  Read the next several pages of the forum for a lesson in what poor customer service will get you.  I’m thinking there’s more to come on this story.

Related posts:

1. Goodbye Nexus One
2. Report: Google to Sell Android Smartphone to Public
3. Verizon Wireless Partners with Google
4. Sony Developing iPad Rival?
5. Google Voice Enables Number Porting