Buyers of the Google Nexus One Smartphone introduced January 5 are posting hundreds of complaints in online forums because they're unable to connect to T-Mobile's 3G network.
While initial problems with new devices are not unusual, these problems are compounded by Google's business model. Google, as the operating system vendor, is the only retailer, and an online-only retailer, at that. So there is no dedicated phone support and buyers feel they're getting the run-around between Google (retailer), HTC (manufacturer) and T-Mobile (service provider), while their issues remained unaddressed.
Analysts also say that Google is selling the Nexus One handset at a near loss. Without a service contract, the phone would be $529. But with a 2-year T-Mobile contract the price is $179 for the device, which is built from components that cost about $174.