• ZDNet, Tuesday, March 9, 2010 11:36 AM

Google's attempt to revolutionize the way consumers buy phones is all washed up. That's the conclusion of ZDNet's Googling Google blog based on revised retail estimates from Goldman Sachs. "Google's attempt at fundamentally changing the way we buy cell phones has yet to bear much fruit," it writes. Goldman Sachs reduced sales estimates from 3.5 million units in 2010 to a just 1 million -- and only 2 million in 2011 if they launch a second phone, ramp up their own marketing effort, and, critically, agree to sell it in physical retail stores.

"Initial data-points were disappointing, possibly due to limited marketing and customer service challenges," Goldman says in a note. "We assume that Google rolls out a second Nexus handset, markets it more aggressively, and makes it available offline, and therefore forecast that Google sells 2 mn handsets per year in 2011 and future years."

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