Google's plan to release its own mobile phone - the Nexus One - seems to have backfired as sales estimates have been slashed.

Such was the hype around the search giant's own phone that some analysts predicted that the Nexus One would sell 3.5m units in its first year.

But the lack of marketing around the phone (coupled with the fact the HTC Desire is essentially the same device with greater functionality) means that investment bank Goldman Sachs has dramatically reduced its estimates.

"We previously estimated that Google might sell 3.5 million Nexus One units in 2010," said the firm, according to ZDNet.

Disappointing data

"Initial data-points were disappointing, possibly due to limited marketing and customer service challenges. Flurry estimated (based on mobile traffic) that Google sold 20,000 in the first week, and 80,000 in the first month, both annualizing to 1.0 million.

"We forecast that Google sells 1.0 million Nexus One units in FY2010, benefiting from US carriers other than T-Mobile, and non-US carriers such as Vodafone, promoting the device too, but suffering from limited marketing activity."

Google is predicted to add to the Nexus range with companies like Motorola coming on board to create the devices - but even then the estimates only go up to two million phones per year.

The decision by Google to only offer the Nexus One online is an odd one - we're all waiting to see what tricks the company has up its sleeve to make this online portal into a real money spinner.

Via ZDNet