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Google quietly announced that it will discontinue the direct sale of its Nexus One phone.

This week we received our last shipment of Nexus One phones. Once we sell these devices, the Nexus One will no longer be available online from Google. Customer support will still be available for current Nexus One customers. And Nexus One will continue to be sold by partners including Vodafone in Europe, KT in Korea, and possibly others based on local market conditions.

To ensure our developers have access to a phone with the latest Android OS, Google will be offering the Nexus One through a partner for sale to registered developers. Visit the Android Market Publisher site and log into your developer account to purchase a Nexus One.

This officially marks the end of the N1 experiment.  There are many opinions why this experiment failed. Google has certainly learned a lot about the complexity of the US wireless market and retail operations in general. The N1 offered a glimpse at carrier independence, with unrestricted software access and real-time Android updates. The 3G reception problems and the resulting finger-pointing between HTC, T-Mobile and Google highlighted the inherent problems with this direct sales model.

I believe, that the US wireless market with its carrier specific 3G data frequencies and incompatible wireless network technologies is a key reason for the failure of the N1, and Google’s direct sales model. Why buy an expensive phone without contract subsidy, if you can’t switch wireless providers because the phone wont work on another carriers network?