In fewer words: the Google Nexus One is a market failure, and carried a considerable opportunity cost for Google.
Without a Verizon partnership, Google loses access to the carrier’s more than 90 million customers, potentially blocking the phone from gaining more widespread popularity and hurting its competition with Apple Inc.’s iPhone.
The breakdown of the deal signals Verizon may view Google as a competitor rather than a partner when it comes to Nexus One sales, said analyst Colin Gillis at BGC Partners LP in New York.
“It’s really a flop for Google,’’ said Gillis. “They paid a price to roll out their own branded phone — it’s a price of trust and relationship with some of the other players in the space.’’