Reports are out that the Google Nexus One tied to service from T-Mobile sold approx 20, 000 units, which pales in comparison to the number of iPhones.

There are various reasons for this, price, service from T-Mobile(which as many know can be horrible),

Can the Nexus One turn things around?  I wonder how many of the people that purchased a 1st generation Android phone are ready to spend $$ on the Nexus One, to me being on T-Mobile and having to renew my contract and paying $350+ for a phone. I would stick with my setup.  T-Mobile service has barely improved in the past few years. It is inferior to AT&T and Verizon blows both services away in the Los Angeles area, regardless of what all the ads claim.

T-Mobile is good for one thing, mediocre  service at a good price, and even the price is going up.  Their customer service is pretty good most of the time.

What makes sense for T-Mobile is to merge or buy Sprint. Which has been a rumor for some time, hard to know if this will happen.  Have ARPA(Average Revenue Per Account) been dropping? I would venture that with the recession in full swing and many people still out of work, there are many looking to cut many of their service out, including minimizing services.  Figure an average smart phone bill runs about $100 per month. That would make your cell phone one of the most expensive items on your expenses per month. Many people have cut their land lines in response.

Another note to Google, the launch was rough, with the site not responding, and having glitches tied to t-mobile site not responding or getting overloaded.

What’s the next blitz? To get people to move to buy a Nexus One, The price will have to come down, there is no doubt. If it costs $174 to build the Nexus One, then the prince should be in the $300 range unlocked. I would buy one at that price.