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Nokia N900 could get the US carrier deal it needs

By CAROLINE GABRIEL

Published: 14 January, 2010

READ MORE: US | Nokia | AT&T | Handset | Qt

Continued ...

As for the Nexus One, early signs are that it will not threaten the iPhone's position as the US' gold standard smartphone. As well as mixed reviews and problems with customer support, the much-hyped handset has seen disappointing sales in its first week, considering the fanfare surrounding its launch.

Nexus One, according to mobile analytics firm Flurry, has sold about 20,000 units in its first week. This compares to figures of 1.6m for the iPhone 3GS, 250,000 for the Motorola Droid, and 60,000 for the HTC myTouch 3G. Of course, the 3GS was a third generation phone and launched globally, but it still took over half its early sales from the US.

The main reasons for the Nexus shortfall are likely to be the choice of a 'soft launch' with only direct-to-consumer channels and confusing pricing/carrier options. The direct price is over $500. This may show Google the risks of breaking too early with the established subsidized cellco route to market, especially as T-Mobile USA chose to market its myTouch 3G far more aggressively than Nexus. Other factors were a post-holiday launch date and reports of poor customer service.

Another threat to Nexus One will certainly come from LG, which plans a major open smartphone push this year. The firm has set a series of aggressive targets, and the latest is to shift 140m phones globally in 2010, up a huge 20% on 2009. This would be a major step along its targeted path to overtake Samsung and become world number two by 2012. It also aims to achieve double-digit share of the open smartphone segment by that date, from a standing start.

It has said about half its smartphones will run Android this year, with Windows Mobile 7, Symbian^4 and Intel Moblin to be critical OSs for 2010 and 2011. Unlike Samsung with its homegrown software platform bada - mainly for featurephones but potentially layered on top of any OS - LG will continue to enhance its S-Class user interface, but will not create a full software environment of its own, according to an interview with the UK Financial Times.

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