Google fails to revolutionize the cellphone market

Google has announced that it will soon bring an end to its online sales of its Nexus One handset. The company will still show off Android phones on its site, but purchases will be done the old-fashioned way: through mobile service providers.

Google's direct sales model was an attempt to radically alter the business model for mobile handsets. Instead of buying a phone from a carrier, with a contract and a subsidized up-front cost, the company was hoping to cut out the network. Customers would buy the phone directly from Google, paying the full fee up-front, and then putting in a SIM of their choice.

This, however, ignored the realities of the phone market, as the company soon discovered. Its approach to tech support—send an e-mail and maybe get an answer eventually—was always doomed to failure. Given how important phones are to our lives and our lifestyles, that was never going to be acceptable. Customers might not like calling call centers, but if there's one thing worse than being stuck on hold waiting for the muzak to end, it's not being stuck on hold at all, because there isn't even anyone to call.

A month after launching the phone the company relented, giving its customers the ability to talk to someone. But this was not the only problem with its sales model.