Nexus S was supposed to be the flagship phone for Android 2.3 a.k.a. Gingerbread. Nexus S was released just in time for the Christmas season but sadly the sales numbers have not been great. I think Google really messed up the release of the phone.
Nexus line of phones are normally used the so-called geeks who know their product. I know few people who bought Nexus One and they absolutely love the product. When the first rumours of Nexus 2 (later known as Nexus S) came out, most of them were quite keen to get it. Feels good to be on the latest version of the software. But when the final product was announced, the geeks were less than impressed. Everybody knew that CES (Consumer Electronics Show) and MWC (Mobile World Congress) is round the corner where the first dual core phones would be released. This meant that Nexus S would have its place as the latest and greatest Android phone for just over a week. That is not good for a phone which you are trying to sell as your flagship model.
Matters were made worse in the UK by bad pricing. They announced it at £549.95 and later dropped to £429 before the release. The fact is that it should never have been £549 for an item priced at $529 in the USA. Rather than saying that it was a price correction, they went ahead with the price drop story. A price drop for an unreleased product is hardly a good news.
I feel that Google should have not released this as their flagship product. They should have waited for another few weeks and selected a dual-core Tegra based phone as their next version of Nexus.
Looking at the initial pricing of Motorola Xoom, I am not sure if they have learnt the lesson. It is heavily overpriced by playing into the hands of Verizon. I really hope that Samsung tab is upgraded to Honeycomb. A sub £400 tablet with latest version of the OS will please some shoppers like me who are out looking for a tablet.