In a further disappointing blow for Google it has recently been announced that sales predictions for the Nexus One smart phone have been downwardly revised from three and a half million to just one million.

When it was announced that the Nexus One Android smart phone was to be available in the UK there were high hopes for the new device. However, it quickly became apparent that there were a number of problems. Firstly, consumers were unable to work out who was responsible for sales support and technical advice for the phone, which was causing both concern and frustration. Another problem was that the phone was available exclusively from Google, leaving it open to increased competition from other similar devices that were more widely available.

It has now announced that there has been a downward revision of projected sales figures for the Nexus One phone, with projected unit sales having been reduced from a massive three and a half million to just one million. The revision has been partly made based on the market performance of the device so far, with officials claiming that Google has done itself no favours in terms of sales by making the phone exclusively available from its own online store.

The Nexus One was produced by the technology giant HTC, but sales of the Nexus One could be further affected because HTC is said to be bringing out its own Android based smart phone with similar specifications to the Nexus One. The downward revision was made by investment bank Goldman Sachs.

An official from Goldman Sachs stated in a recent report: “We previously estimated that Google might sell 3.5 million Nexus One units in 2010. Initial data-points were disappointing, possibly due to limited marketing and customer service challenges. Flurry estimated (based on mobile traffic) that Google sold 20,000 in the first week, and 80,000 in the first month, both annualizing to 1.0 million. We forecast that Google sells 1.0 million Nexus One units in FY2010, benefiting from US carriers other than T-Mobile, and non-US carriers such as Vodafone, promoting the device too, but suffering from limited marketing activity.”

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Source – Techradar