Earlier this year, Google introduced the advanced Nexus One smartphone, which was sold directly to consumers. Google CEO Eric Schmidt said that the company had achieved its goal with this model, and there was no need for the next model.
Chairman and CEO of the company said in an interview :
"The idea behind the Nexus One a year and a half ago was to try to push the business of making different phone hardware platforms. And it clearly succeeded. It was so successful that we didn’t need to produce a second model."
The Nexus One was the first model released with Android OS 2.1, and it recently became the first model to receive an upgrade to Android OS 2.2.
Some hoped that a Nexus Two with a retractable keyboard would follow.
Schmidt says that the company’s original smartphone was so successful that there is no need for a Nexus Two, but many people disagree with his assertion.
Google has tried experimenting with the Nexus One by making it available for purchase only from its Web site. The vast majority of phones sold in the U.S. are sold through wireless carriers, and Google’s direct sales method has not been well received. The company never disclosed how many units it sold, but it was certainly a small number compared to the sales of competitors — such as the Apple iPhone or the Motorola Droid.
Also, the Nexus One, while high quality, was no more advanced than many other smartphones on the market, and it quickly fell behind models like the HTC EVO 4G.
T-Mobile was the only carrier in the U.S. to actually use the Nexus One. There is also a version for ATT, but it is sold without that carrier’s involvement or approval. Google dropped plans to release versions for Verison and Sprint after those companies started offering models with similar or better features.
In May, Google announced that it plans to stop using its Web site to sell smartphones directly to consumers. Instead, the company is going to use the site to showcase all Android OS phones. Andy Rubin, head of the team that develops Android OS, said :
"Although the ubiquitous adoption of the Android platform has exceeded our expectations – the web store has not lived up to them. It remained a niche channel for early adopters."