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Goldman slashes Nexus One unit forecast on weak performance

updated 07:55 pm EST, Mon March 8, 2010

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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Comments

  1. chas_m

    Moderator

    Joined: Aug 2001

    +11

    So much for the

    "iPhone Killer."

    NEXT!

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    +6

    Analysts should stop basing sales

    estimates of high tech products based on how many Engadget commenters saying that they're going to buy one because the product has everything a geek wants. A warning flag went up as soon as they said customer service was by way of email. Does the average consumer really want that kind of c*** service from a supposedly highly-valued tech company. New Android smartphones only only going to get five minutes of fame before the next model hits the streets. The geeks are going to go nuts always wanting the latest Android smartphone, each with some latest feature the earlier version didn't have two weeks ago.

    The iPhone is an easy to use, solid device from top to bottom even if it lacks some cutting-edge hardware features. People can depend on Apple to service the product and the iPhone ecosystem is deep. It's not just some one trick pony that people are buying. The competitors either don't understand this or don't care and Apple will continue to lead the pack in customer satisfaction and continued consistently high sales.

  1. thebiggfrogg

    Fresh-Faced Recruit

    Joined: Jul 2007

    +1

    Glad these

    Goldman buffoons are earning their pay after highjacking the Treasury.

    As was said above, re: iPhone killer. Next!

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