Carphone Warehouse drops Nexus S price and delays launch

The Carphone Warehouse has dropped the price of a SIM-free Google Android-based Nexus S smartphone by more than £100, to £429.99, and confirmed that it will be available two days later than planned, on 22 December.

When the retailer announced earlier this month that it would be one of just two firms selling the Samsung handset in the UK, it said that the device would cost £549 when bought without a SIM card.

However, a Carphone Warehouse spokesman confirmed to V3.co.uk the new price of £429.99 or from £30 a month on a two year contract.

Any users wanting to buy the phone together with some sort of mobile provider relationship could take up pay-as-you-go offers from O2 or Vodafone, where again it costs £429.99.

V3.co.uk is waiting for hear from Carphone Warehouse about the reasons behind the price cut, but according to the spokesman it is likely just a "finalisation" of the pricing.

However, the price cut could also be a reflection of the fact that the device has so far failed to ignite a lot of consumer or business interest.

Francisco Jeronimo, research manager for European mobile devices at analyst firm IDC, told V3.co.uk that the device, which is based on Google’s Android 2.3 operating system, and built by Samsung, could be a damp squib.

"A device like this was needed a year ago, but now Android is well known and is about to become the biggest platform in western Europe," he said.

"Google's decision to partner with two big retailers [Carphone Warehouse and Best Buy] is an attempt to make the device successful. However, I don't see it shipping huge volumes."

The Carphone Warehouse also confirmed a release date of 22 December.

"Due to strong customer interest, limited stock will be available to buy direct at key Carphone Warehouse and Best Buy stores in the UK," said a spokesperson.

"All other branches of The Carphone Warehouse will be taking orders via instant ship delivery which will allow customers to pick up the phone from any store at their convenience."