droidStory

The numbers are in. Analytics firm Flurry is comparing sales figures for the most popular smartphones in the first 74 days on the market. Flurry estimates sales based on downloaded applications featuring its embedded analytics technology.

According to the report, Google sold only about 135,000 Nexus One phones in the first 74 days, compared to roughly 1.05 million Motorola Droid’s sold during the same time frame. For comparison, Apple sold about 1 million units of  the original iPhone.

Overall the results are an impressive statement for Android and resonate with the recent ComScore report showing Android’s market share growing to 7.1% in the US.

So why is the Nexus One struggling?

For starters, the Droid launched on Verizon, one of the strongest mobile network providers in the US, coupled with a 100 million dollar advertising launch blitz. Many loyal Verizon customers had been waiting desperately for a smartphone that offered capabilities and user experience at an iPhone level. The Droid fit the bill.

Google’s launch of the Nexus One was clumsy, without much marketing fanfare, on T-Mobile, the smallest of the four major US mobile providers with the weakest coverage. In addition, customers were introduced to a new online sales model that forced them to buy the phone without a chance to touch, feel or even try the phone before committing to a major purchase. Customer support was limited to online forums, and customers experiencing problems were bounced around between HTC, T-Mobile and Google.

Lastly, the lure of buying an unlocked phone is really a red herring in the US. Unlike the rest of the world where most carriers operate on GSM and consistent wireless frequencies, the US has four major mobile network providers, all with different wireless protocols and frequency bands that require provider specific phones.

Buying an unlocked phone without carrier subsidy and contract, still doesn’t afford you the freedom to choose or switch providers. At most you avoid carrier lock-in or early termination fees, but you are stuck with selling the phone to recover at least part of your up-front investment. That’s a good option for early adopters and cell phone junkies, but not the kind of hassle regular consumers want to deal with.

I think the Nexus One will do OK over time, after it becomes available on T-Mobile, AT&T, Verizon and Sprint, more people will get a chance to try someone’s Nexus One before buying. Still, the big carriers want to differentiate themselves and will continue to heavily invest in their own branded Android handsets, competing against the Google phone(s).

At the end Android wins, and perhaps that’s all that really matters to Google.