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Google Scrambles To Fix Nexus One Complaints

Complaints about Google's Nexus One smartphone are growing as some disgruntled users face wireless-provider early cancellation fees. As Google, manufacturer HTC, and T-Mobile try to solve the problems, Verizon Wireless is preparing to offer Google's Nexus One. Google also released the Android 2.1 SDK to placate Nexus One developers.  Google Nexus One continues to make headlines -- for less than desirable reasons. It started with customer  complaints about connection fees and developer complaints that the Android 2.1 development kit wasn't released before the device's launch. Now news of wireless-provider early cancellation fees have added to the grumbling.
The series of bad news around the just-released "superphone" has some observers wondering if many consumers will want the Nexus One by the time it becomes available on Verizon Wireless later this quarter. But Verizon may fare better than T-Mobile, which is offering the smartphone for $179 with a two-year contract and plenty of restrictions, including the offensive early termination fee.

Still, users are most concerned about issues with the phone itself. The termination fee may only become an issue if Google, manufacturer HTC, and T-Mobile can't figure out how to solve the connection problem before customers begin demanding their money back.

On Monday night, Google released the Android 2.1 software development kit that developers  have been clamoring for.

It's Not About the Money

For Google, it doesn't appear to be about the money. According to iSuppli, the Nexus One costs $174 to make. It's unclear how much, if anything, T-Mobile may be offering Google for rights to sell the device. Still, the Nexus One could tarnish what has been an otherwise fairly sterling reputation for Google. Google was even chosen as the word of the decade earlier this week.

After hundreds of complaints on its forum, Google finally responded to the reported issues. "We are aware of the issues that have affected a small number of users, and are working quickly to fix any problems. We hope to have more information soon. When we do, we will post it to the user forum," a Google spokesperson told us in an e-mail.

Part of the problem is Google's approach to customer service . Google launched a web store to sell the Nexus One, and it only offers online support for the device through support forums. Customers have reported calling T-Mobile and being told to call HTC, then calling HTC and being told to call T-Mobile. Consumers don't seem to like Google's service approach.

Who's To Blame?

Building, marketing and servicing a smartphone may be more complicated than Google expected. As Burton Group analyst Mike Disabato points out, Google has never done hardware  -- other than Google Search Appliance data  centers -- before.

Google's experience is with hardware for enterprises. They might have a rack and they may have one or two people from a company calling in for support once in a while," Disabato said. "Go make five million handsets and you are going to get a million phone calls. Are they ready for that? I don't know."

There hasn't been much official finger-pointing between Google, HTC and T-Mobile. At least not yet. But Disabato expects that to begin soon enough. He pointed to how AT&T  tried several times to blame the iPhone design for problems users had with the device.

"I am one of these people that will tell you that's hogwash. I have tried AT&T's network  in three different spots with three different phones, including the iPhone, and I have the same crappy service with all of them," Disabato said. "So from my perspective, it's probably not the phone that's at fault. It's the network."