Goldman Sachs Sticks In The Boot, Nexus One Sales Forecast Slashed

Goldman Sachs Sticks In The Boot, Nexus One Sales Forecast Slashed

The initial poor performance of the Nexus One seems to have caught up with Google after Goldman Sachs have slashed the sales forecast of the smartphone by 2.5 million units, a total of 71.4%.

Analysts had previously said that the device would shift a potential 3.5 million units in it’s first year.

The figure was cut to around a million units following a report by mobile analytics company; Flurry who stated the smartphone sold just 80,000 handsets in the first month of release.

Goldman Sachs attributed the lower than expected sales figures to “limited marketing activity” and the absence of a substantial mobile operator (the device is currently available via T-Mobile) that would be able to market the device to a large base of potential subscribers.

FastCompany highlighted the stark contrast between the Nexus One and other smartphone handsets. It took the original iPhone just 74 days to hit a million in sales, version 2 just three days.

Google’s launch did catch an early buzz but the Nexus One completely online. The lack of a “bricks and mortar” store for potential purchasers to view the device before they bought it has hindered the handsets ability to make a dent in the market largely enjoyed by Apple.

Wireless operator Verizon are apparently looking to release a CDMA-equipped Nexus One handset. They have already enjoyed some success with the Android mobile operating system having sold approximately 525,000 Motorola Droid smartphones.

Analysts predict demand for the Nexus One will increase once it becomes available through a more established operator.

Goldman Sachs concludes:

“We assume that Google rolls out a second Nexus handset, markets it more aggressively, and makes it available offline, and therefore forecast that Google sells 2 million handsets per year in 2011 and future years,”

[Source – FastCompany]

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