Apple and AT&T with a green path in front of them two years back on iPhone innovation and no Nexus One to worry about at the time, launched without addressing the iphone insurance issue. If their iPhone buyers lost device use for whatever reasons it was a case of bad luck and simply a hazard run by consumer leaders. With the iphone technology so far ahead at the time it seems it was a risk the iphone user was prepared to run. Now with similar devices becoming prevalent not having phone insurance options can become a competitive negative; a negative Nexus One should capitalize on. As things stand the only supplier/provider insurance for iPhone is extended warranty from Apple Care, which is hugely expensive for the little you get; and there is a void in accidental damage, Lost and Stolen. This has been filled somewhat by companies like SquareTrade, SafeWare and others on the Internet but not comprehensively in one policy and not at point of sale. Losing or breaking an iphone can become a very costly mishap indeed.
The facts of the business in phone insurance are this: Smartphone devices at the level of iPhones and Nexus One at the stage of replacement if lost, stolen or damaged is over $500. This in relative terms brings it into the arena of lap tops and can turn into an expensive experience if there is a serious mishap as providers will not subsidize second phones in the same contract. Moreover, Smartphone technology is evermore complex and sensitive and cost of repair is becoming so high that replacement irrespective is often the insurers best solution.
The Nexus One is a new entry into the cell phone arena and it makes no pretense that it positions itself directly against the iphone. It however has a long climb to make for two important reasons:
iPhone is the yardstick cutting edge innovator of touchscreen cell phone devices, building into a new paradigm of app inclusion, which grows exponentially and is a huge attraction to the iphone cult
The fact that Nexus One is indeed a Google phone, and undoubtedly Google is a powerhouse innovator and era changer of note, its channel is still removed from cell phone devices and somewhat removed from iPhones leadership in this channel.
If Nexus One asked us for advice there is no question that the one huge glaring weakness in the iPhone fabric lies in phone insurance. It is on this platform that an attack should be made.
The way Ensquared as a phone insurance expert site would do it: Nexus One is well advised to connect to responsible Underwriters to attach a strong phone insurance program to their device: One that will address damage beyond extended warranty and include lost Nexus One and stolen Nexus One as well. The fact that the device is being sold unlocked and unconnected to any service provider requires thinking outside of the box. In the same way as device manufacturers tie in with phone service providers, Nexus One could interview different insurance providers with a view to endorsing (perhaps even giving a limited subsidy) for insurance options on Nexus One. That would be a significant and meaningful advantage against competition that has ignored this aspect altogether. It is an open track right now. Ensquared the #1 authority on phone insurance has a very good vantage point of the innovative phone insurance entrants that would qualify, including their own strategic alliances. Ph one insurance is often a hidden low key item in any device purchase but could be propelled to the forefront of reasons to buy one device rather than another especially in the very expensive smartphone industry. The cell phone strategy however
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