Google's Nexus One venture was ambitious from day one - from the very fact the company was entering into the hardware business in the first place, to its initial online-only sales strategy.

It was the latter that raised the most eyebrows at the time, and Google's recent decision to follow a more traditional sales model by touting the handset to outlets on the high street seem to vindicate their cynicism.

 

However, as mocoNews reports, the damage may already have been done.

Shaky investors

The website claims investors are lowering their estimates on Google following the firm's decision to drop its online Nexus One store – the change in strategy, though long advised by many, almost being taken as an admission of defeat.

As a result, though Google's net revenue as a whole is predicted to rise, Nexus One's shaky state has caused Barclays internet analyst Doug Anmuth to predict a drop in Google's share price from $6.57 to $6.49, with earnings are also predicted to fall.

Nexus One's position hasn't been helped by carriers passing up the opportunity to sell the handset on their respective networks – Verzion and Sprint both recently opting to sell third-party Android handsets instead.

The search is on

The handset's future is now the subject of open speculation, with many already proclaiming the phone as dead on its feet.

It contrasts sharply with Android's fortunes, with Google CEO Eric Schmidt having stated last month that 65,000 phones are being activated daily.

However, mocoNews claims Google's recent purchase of AdMob has caused investors just as much worry, with many concerned the giant is spreading itself too thin in a bid to latch onto a revenue driver other than search.

mocoNews