Google’s Nexus One hasn’t fared as well as the company would have hoped, selling only 135,000 units its first 74 days, and now it’s being given away for free to industry reviewers.  Nexus One was a learning experience for the company, not the least of which is how to market a physical product.

“All those iPhone and Droid commercials on TV may seem like ego trips for the Apple and Motorola. But marketing plays a big role in phone sales,” writes Priya Ganapati. “Smartphones are not just for gadget heads, so if handset makers want to reach an audience beyond the early adopters, they have to advertise and sell their product through traditional media channels.”

“Google didn t capitalize on the initial buzz around the first  ‘Googlephone.’ The company never ran a focused marketing campaign that would try to impress on potential customers why the Nexus One was worth considering,” she continued. “The result has been that few potential customers have had a chance to hear why the phone may be special. Google also limited itself by offering the device only on T-Mobile. Last month, it extended it to AT&T, but AT&T customers will not get a subsidy on the device and will have to pay the full price $530 for the unlocked version of the phone.”

Source: Wired