Estimate down to 1 million from 3.5 million

Goldman Sachs has slashed its sales forecast for Google's Nexus One smartphone, following lackluster performance in the first few months of availability. The analysts initially expected sales of approximately 3.5 million units through the end of the year, however the figure has now been reduced to just 1 million handsets in the same time period.

"Initial data-points were disappointing, possibly due to limited marketing and customer service challenges," reads the Goldman note.

The mobile analytic group Flurry estimated first-month sales of just 80,000 units for the Nexus One. In the same timeframe, the Verizon was believed to have sold approximately 525,000 Droid smartphones. Many analysts expect Nexus One sales to accelerate once the device is available through Verizon.

"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," Goldman concludes.

A recent report suggests Verizon may already be preparing to launch the CDMA-equipped Nexus One. The carrier represents a much larger customer base than T-Mobile, while sales could be further boosted if the devices are sold directly through brick-and-mortar locations. [via Wall Street Journal]

By Electronista Staff

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Investor, industry, Google, Goldman Sachs, Nexus One