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8/1/12

On $0 getting you $300

Google announced that the Nexus Q will be delayed indefinitely. The email (quoted in a Wired.com article) from Google customer service says that they are working on adding new features. Customers who pre-ordered the device before Google closed the pre-orders will receive a preview device for free. While the Nexus Q got decent reviews the device was limited in that it only played content from a very few sources. This made it much less attractive that a $100 Roku or Apple TV.


Part of the attraction of the Nexus Q is the built-in 25 watt amplifier that can power a set of bookshelf speakers. However, a streaming player and basic stereo sound system is not terribly hard to replicate with separate, cheaper components. The Nexus Q difficult to categorize because the current feature set is so small and the price so high. It does not fit into the streaming video player category because of it's high price (it is three times as expensive as the high end Roku); the device is not an audiophile-type stereo system because streaming audio is not high enough quality to fit that market. Google realized the current feature set would appeal to only a small subset of Android users who use Android and Google Play for all of their entertainment needs and have a high enough income to buy a $300 device that makes life a little more convenient.


It is important not to miss the customer service story here. Google is still a relatively untried hardware manufacturer. Rather than shipping a device that is not ready for widespread use and may be a dissapointment to users, Google delayed the launch and were able to reward loyal pre-order customers by providing them with a free device. Future customers who did not pre-order also benefit by getting an improved device out of the gate. By being pro-active in their customer service and getting ahead of potential issues Google was able to disarm a situation that could be lethal to a new hardware company trying to establish a reputation.


 


Andrew

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