Why Verizon Won't Announce The Galaxy NexusGeneral

  1. DreamShotz

    DreamShotz New Member

    To understand why Verizon is so hesitant to announce the release of the Galaxy Nexus you have to understand retailers and how their minds work.

    The Holiday shopping season is a huge opportunity for retailers. No, I am not talking about the fact that this is the time of the year when they are supposed to finally break even for the year and actually turn a small profit… That stuff is all marketing garbage created by their industry to make us believe that the prices they are charging are as reasonable as possible and that they are not just profit sucking scum.

    The bigger opportunity of the Holiday is one most consumers don’t realize. I know, because I owned a retail business for 15+ years. The Holiday season is the time of year when you unload all the old junk that you couldn’t sell all year long. I am talking about stuff that you have actually given up on and likely even put in storage becomes the items that you now feature as “door busters”. Make it “look like” a deal and watch it disappear from your overstock.

    Let me explain. Consumers have been trained to look for deals on “Black Friday”. So, if a retailer needs something that looks like a deal, they simply take old models, left over items that are likely obsolete and blow them out at cost or often even well above their original cost. The retailer makes their money back and the consumer (likely with little knowledge about the product they are actually buying) believes they got a deal.

    So, what happens if you are a “smart” retailer and you buy correctly which means you don’t have lots of old junk hanging around? Simple, you look for manufacturers that were not as smart in their inventory planning. It’s not hard to find a manufacturer stuck with old product. The retailer cuts a deal, buys it at substantially less than the original cost, and just like magic you have a deal for your door buster ad.

    Most consumers don’t know much about what they are actually buying, and since the Holidays have become “I need to get a gift for little Johnny”… The consumer’s mindset often becomes I really don’t care all that much about the details, features, etc., all I really care about is that this obligation is fulfilled and I can check someone else off my shopping list.

    Want to confirm what I am saying, simply look at the Verizon Black Friday Holiday advertisements (Verizon took them down but You tube still has them) and take a close look at which phones and tablets are on “sale”. It’s all old stuff that most of us would never even consider buying.

    Now, consider that if Verizon released or even announced the release of the Galaxy Nexus, the media would pick up on it. With the added publicity around this “ brand-new, state-of-the-art iPhone killer” which likely to be a hot topic and all of a sudden even people that didn’t know why they should have this new Galaxy Nexus phone, would want it. This means that Verizon would sell a whole lot less of the old (but profitable) junk they bought, and they might even get stuck with lots of old junk in inventory that no one wants to buy.

    So, I understand all that, but here is what I don’t understand…
    When this phone was first announced I put my name on the sign-up sheets with Samsung, Verizon and Google. These are all substantial-sized companies. The sign-up lists were specifically for the Galaxy Nexus, and NOTHING else. All these companies have huge privacy statements on their websites that brag about how they respect my privacy and won’t misuse my personal information…

    To date Samsung has spammed with 5 separate times with offers of everything from computers, to televisions and refrigerators.
    Verizon has spammed me 6 times with all their free phone offers, old obsolete tablet offers, change data plan offers and more.
    To date, Google is the ONLY company that has NOT spammed me.

    So, while no one is willing to talk to me about the product I am anxiously waiting to spend money on, 2/3 of the companies involved are anxious to exploit my personal information without so much as a bit of concern and spam me constantly with all the other crap they think I “should” be interested in buying from them.

    To me this means one of two things. Both Samsung and Verizon either are the profit sucking scum I mentioned at the beginning of this rant and don’t care at all about their customers or their Marketing Departments are quite simply marketing ******ed.

    Given those two choices I would have to point out these companies both sell technology in yet their marketing departments are living back in the dinosaur age.

  2. xliderider

    xliderider Well-Known Member

    Wow, wall of text... your first post would be much easier to read if you broke it up into many paragraphs.

    Welcome to the forum. ;)
  3. AntimonyER

    AntimonyER AF Addict VIP Member

    Welcome to the forums. And thanks for your insight. Profits drive every public company nowadays, I have to think with the press release announcing it over a month ago, the marketing group is not having a lot of say in the matter. So I will go with option 1 ;)
  4. BiGMERF

    BiGMERF Well-Known Member

    what you said has no bearing since Verizon extended there return period to Jan 15th.. using your logic the Gnex wont release till then Dec 8th has the droid 4 dropping too
  5. tomato88

    tomato88 Well-Known Member

    It is possible to come up with that assumption, but not a lot of people plan to pay the restocking fee or deal with VZW's customer rep to get Galaxy Nexus in the end.
  6. T-Keith

    T-Keith Well-Known Member

    The problem I see with your logic is that they just released the razr and rezound. If they truly wanted to sell their old phones this was a bad move.

    My guess is that they are having some minor issues and delays or want to spread the phones out a little. I will agree with you on their marketing departments, they absolutely suck.
  7. rushmore

    rushmore Well-Known Member

    I think the main reason is what a few VZW corporate store managers said. Corporate store direction and incentive is to mainly push the Razr and the Droid 4 during December and January. All other products are being pushed by their respective OEMS. This includes the Nexus and Rezound. Minimal dollars have been allocated to other devices, so up to the OEMs and retailers if any is spent.

    That said, the local VZW stores have Nexus add-on products in their back rooms.

    VZW is basically a partner with Motorola for these two Droid 4G phone launches.

    Added: VZW gets sales credit for folks that sign new contracts, new lines and discounted phones. If you pay full price for a device, the corporate store gets nothing, unless you buy add-on products.

    Point here is unless VZW staff are getting cash incentive for pushing the two new Moto devices, seems staff would not care what device you buy- as long as you do not pay full price and do not already have a contract.
  8. speede541

    speede541 Well-Known Member

    Most "door busters" from reputable national retailers were ordered months ago with Black Friday / holiday shopping specifically in mind.

    Some may be low quality "junk" offering good margins, others may be nice quality at an honest discount due to quantity commitments, but in either instance the manufacturing date decal will prove this is not left-over merchandise. That's not even conceivable in the quantities a Verizon, Best Buy or Target requires to meet demand. (Maybe a smaller chain like Fry's can do this with *some* stuff.)

    In VZW's case, the two rPhone offerings are hardly left over, maybe just unwanted in the looming shadow of Nexus.

    Shoppers otherwise in the market for the Nexus are not necessarily going to be interested in left over Thunderbolts, Charges and Bionics.

    I'm not saying the scenario you present isn't real, but you are painting all of retail with a very, very broad brush.
  9. mttfrog13

    mttfrog13 Well-Known Member

    I think the reason is simply because motorola didn't want their sales hurt my a 3rd top of the line phone on the same carrier. Yeah there are black friday sales, but if the gnex can come out in time for the holidays, it will still get pretty good sales.

    This is the same thing that happened when verizon pushed back the release of the samsung fascinate when the droid x was released. The sgs was released on att, but not verizon because verizon had the droid x and moto wanted to get some sales in before the sgs sucked them all away.

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