I purchased a Galaxy Nexus for my girlfriend directly from Google specifically to avoid dealing with the carriers and their history of BS. 21 days after the phone arrived, it stopped charging. I tried every troubleshooting step Google, Samsung and the forums offered. The consensus was that the phone was defective as many users on the forums had to have them replaced by their carrier. So I call Google and they state that their return/replacement policy is an abysmally short 15 days; after that I have to deal with Samsung. Remember, all carriers now have 30 days to return/replace defective devices, and even after that point, if the device is truly defective, I’ve known many to replace it anyway.
So I call Samsung. Their solution: send it in and I might have it back in 2 weeks. This is not a viable option as you can imagine being a 20-something without a phone these days is impossible. In response to my concerns, Samsung suggested that I should pay T-Mobile for a loaner. As if this was T-Mobile’s problem. (Another brilliant solution was to purchase new batteries and run them down until I was able to send the phone in).
I thought this was absurd, and being accustomed to Apple’s level of customer service, I went back to Google to plead my case thinking that surely they’d see reason and do what was right. I was again told no, I had to deal with Samsung since it was 7 days beyond the replacement period. I was then informed that Google had received word from Samsung that my device was out of warranty (mind you they hadn’t even laid a hand on the device; I also have the email documenting this).
At this point, I went nuclear. I gave them two options: As the retailer, send me a replacement device and I return the defective one (I can’t tell you how many retailers have been flexible on policy when the product is quite clearly defective). They do that, I’m a happy customer. I even tried convincing them that they’re losing money when my girlfriend doesn’t have a working phone; she can’t search or use any other Google services and see all those ads.
OR they can send me back to Samsung, at which point I do a charge back on my credit card for being sent damaged/defective goods, and cease to use any and all Google products because if Google can’t stand by the product I paid $330 for, how can I trust they’ll stand by the products I’m using for free?
Google told me there was nothing they would do.
In the end, I learned a few things: American Express’ customer service is awesome when settling disputes; the de-Googlefication of your life is easier than you’d expect; and sometimes it really is better to go with the Devil you know and buy it straight from the carriers.
If Google wants to Play (see what I did there?) in the retail space, they’d better learn to handle customers like me.
My girlfriend’s iPhone 5 will be arriving soon.
Sucks
But congrats on her iPhone 5! Love mine.
I remember my iPod Touch’s home button would not work every 10th time or so I pressed it. Took the iPod to an Apple Store, took them 10 minutes to reproduce the issue ONCE, and they handed me a brand new one. Then my speaker in a MacBook Air was not reproducing sound at certain frequency in certain songs correctly, they handed me a new Air. Simply the best customer service, ever. And while waiting on my Air replacement, I overheard a genius conversation with another customer who had a dead battery in a 3-year old laptop. Way out of warranty. They replaced the battery anyway, for free – that guy was happy.
PS: I also recommend getting AppleCare+. Not just for accidents (although it’s great for that). But if it’s time to sell almost two years from now and the phone is scratched, and let’s say you accidentally drop it, and break the screen (hypothetically, of course), you get a brand new one for just $50, and can win $50 net on resale value.
Oh yeah. As a former Apple employee, definitely get AppleCare and AC+ on all my gear. I can’t tell you how many times it’s saved me (not to mention the thousands of $$).
What a terrible experience. I’ve had bad customer service before but nothing like that. I think it’s not an issue of “don’t be evil” but rather don’t allow the hubris of being Google dictate their actions. Google certainly has a thing or two to learn about customer service.
Everything Google does is shit. Pure and simple. Even when they manage to offer a decent product, they kill it off if it doesn’t make ad money for them in short order. I got tired of it a long time ago and dropped everything Google (except Gmail, which makes for an excellent ghost email account for web sign-ups).
Awesome recent Apple support story:
Power button stopped working on my iPhone 4S last week. Made appointment at Genius Bar using Apple Store app. Within 1/2 block of Apple Store, notification pops up and says “shall I check you in to your appointment?” Why yes! Confirmation notification says I’d be notified when my appointment Genius is ready. Walked across the street to drink a beer while waiting. 15 minutes later received notification that Genius is ready. Walked across street, demoed the non-functional power button. Phone is within warranty so received a new iPhone 4S. I was backed up so wiped my old phone, handed it to Genius, walked out with new 4S. Effort: minimal. Wait: minimal. Satisfaction: very high. Thirst: slaked by the beer
Brilliant!
Please consider Newsblur as an alternative to Google Reader- if you use this part of their offerings. I much prefer the responsiveness of Newsblur, and it even imports your feeds from google reader. You won’t look back. I don’t work for newsblur, just a happy premium customer that like to tell everyone that yes, you too can rid your life of google’s services.
I’ve been looking for an alternative! Thanks!
What your story highlights is that paying extra $400 dollars upfront for a product allows for excellent customer service? Consider what Apple wants for an iPhone and what Google wants for a galaxy nexus. Nexus 4 vs iPhone 5?
So yes you get excellent service but you payed for it right on the spot iPhone 5 16GB $699 (cdn prices) vs $359 for a Nexus 4. I would say it’s downright crazy to expect the same level of service considering the price disparity.
You payed $340 dollars to apple (almost the cost of the entire Nexus 4) for your “insurance/service”. I would like to emphasize one more time you basically paid Apple for TWO iPhones 5 with a purchase of a single phone.
Is it worth it? That’s a personal choice. Certainly some people will win such as in your case and most will loose since chances are most customers do not need “mandatory” insurance apple changes you.
But excepting same level of service for products with such different price ranges is at best misguided.
You’re right, and I won’t make that mistake again. But considering that the price I pay for a device off contract still requires the same price cellular service, the disparity in “real cost” between an on contract iPhone and an off contract Nexus device is a moot point (assuming I need cellular service for two years, which I do).
But I believe your point holds if it were applied to the Nexus 7 vs. iPad.
(Also, this was the Galaxy Nexus for $329, not the Nexus 4 at $299)
Someone could buy a cheaper iPhone model that matches the cost of the GoogPhone and the customer service disparity would still be the same. Your comment is not logical.
Which model of an iPhone would that be? The cheapest I see is $450 dollars for an iPhone 4 (not 4s). I an fairly confident my point holds up just as well in this case. IPhone 4 at this time likely costs about 1/2 of that if not even less to make.
The nexus 4 is $300. Still significantly cheaper then iPhone 4.
Then consider an iPod Shuffle: $49 but Apple still gives the same amount of attention and level of service to those customers as they do iPhone/iPad/ Mac customers.
Yes, it may be subsidized by the margins of other products, but Google is no stranger to doing that with their ad revenue.
I think this formula does not change with the shuffle the device is so basic that it like costs apple $20 dollars to make it.
http://www.isuppli.com/Teardowns/News/Pages/Samsung-Dominates-Third-Generation-iPod-Shuffle-Design.aspx
This was in 2007, this means that it costs even less to make now. So again, with 1 shuffle you paid apple for two.
Correct, but the cost of service is only marginally proportional to the device being serviced. The time of the employee costs more than the individual components. I’m assuming that the idea here is because I’m paying less for the device, Google can’t afford better service when things go wrong.
I would also like to add you actually pay apple for 3.5 iPhone 5 when you buy one according to these guys.
http://www.slashgear.com/iphone-5-16gb-costs-207-to-produce-according-to-ihs-isuppli-19248521/
There is no magic here and nothing special. You pay *A LOT* for Apple premium service. The worth of this service and the cost of it is a personal choice. That is what the free market is for, you get to decide. I just dont want you to think Apple gives this service to you because they are so nice. They are not. You choose to pay for it and you get it.
And I guess just to put into perspective
http://allthingsd.com/20120711/googles-nexus-7-costs-152-to-make-ihs-isuppli-teardown-finds/
This is the cost of the 8GB model which google phased out and replaced with the 16GB model.
Which google sells for $199 (The 16GB).
So do you still think Google is unfair?
You need realize that Google is simply made a strategic choice that people will be okay with waiting 2 weeks for their repair if it comes to it. And they pass this *VERY SIGNIFICANT* cost savings to you.
That price breakdown you link to points out it doesn’t include:
“the cost of intellectual property, royalties and licensing fees, software, software loading and test, shipping, logistics, marketing and other channel costs.” (And then there’s still R&D which Apple arguably does more of than the competition.)
Now I agree that Apple is able to provide their unusually high level of service because they charge enough, but I doubt it’s as much as you make it out to be.
Let’s deal with r&d first. It is well known and proven Apple spends the least on r&d then any other company like Microsoft, Google, Samsung
http://m.gizmodo.com/5486798/research-and-development-apple-vs-microsoft-vs-sony
Apple spends significantly a lot less then anyone else on r&d.
So you are wrong there.
As far as your other points everyone is affected by them equally including Google and Samsung and Microsoft. So far I stand very confidently and comfortably behind my statements.
Clearly you have never owned any non apple products….. Outside of Apple, no one hot swaps devices or provides loan hardware when getting repairs direct from the OEM. Samsung, LG, HTC, Motorola all have the same process. If you but via mobile carrier all they do it send it back for you and provide a loaner phone from the 80′s
While Apple hotswaps devices, you still have to make a ‘booking’ and go into an Apple store to get it swapped over. If you live outside of the city, that isn’t as easy as it sounds.
Oh you don’t live near an Apple store, well you can send it back in as well *GASP* and it takes 2 weeks and Apple won’t provide you with a loan phone while its being repaired etc!
If you live near a OEM repair center, you can take them in directly and pick them up directly, it normally only takes a few days.
I’ve had Sprint swap out a few Palm Pre phones for me in the past. Best Buy has also replaced devices outright for me. A 2 week turnaround is something Dell does, not something we expect of Google.
I think the point is that Apple has set the bar for customer service, and since Google wants to compete in the same area as Apple, it needs to step it up as a retailer.
I’ve used AppleCare and never have I ever waited 2 weeks for something to get shipped out and returned to me. It’s always overnight everything with a 2 day turn around time.
As I said…. “no one hot swaps devices or provides loan hardware when getting repairs direct from the OEM”, key words are DIRECT with OEM as they NEVER swap over phones, other than Apple.
Stores/Mobile carriers may swap them over, but its them who is taking on the risk etc and this is normally within 30 days so you don’t cancel contracts etc, after that its kick you to the curb while you wait with your loaner 80′s mobile phone.
Yes Apple sets the bar high, and I will give them that its the highest out there. I don’t get why you are bagging the crap out of Google customer service cause its equal to everyone else but Apple!?
If you need hot swap repairs, buy Apple….. Hell if you want hot swap repairs buy 2 nexus 4 devices and its about the same price as 1 iPhone 5, that way you have a hot swap device at home ready to go! Not even apple provides that level of service for the price!
So we’re talking about the Nexus line of devices, which are all Google branded, purchased from Google, and designed in partnership with Samsung/Asus/Whomever.
But for all purposes, the Nexus devices are about controlling the Android/Google experience as much as you possibly can; from buying the device through Google, to using Vanilla Android, and specifying exactly how the phone should be. So why does the control of the experience suddenly end when I need support?
Google is the retailer. What would it have cost them to provide me an advanced replacement device? Certainly less than it’s costing them now since I did a charge back on my credit card.
Average consumers don’t care who manufactures the device. They want it to work. Google is the face of the Nexus line and if they want to succeed as an alternative to the carriers and other retailers, they need to stop passing the buck.
One more just to explain. The new iPad MINI is one of the lowest (if not the lowest) margin products apple makes.
http://www.isuppli.com/Teardowns/News/Pages/Low-End-iPad-mini-Carries-188-Bill-of-Materials-Teardown-Analysis-Reveals.aspx
So when you buy one you pay Apple just slightly less then 2x what it actually costs to make.
I hope I provided enough examples to show there is no Magic about Apples admiringly excellent support. It very simply. You buy an Apple product you pay 2x the price of it costs to make. There is your support.
I understand now. You make an excellent point.
Do you think the average consumer will consider all this though? Try explaining this to an irate customer. They don’t want to hear excuses; their phone is broken and it’s your problem to solve. If Google wants to actually be a retailer, it needs to realize that.
Google is trying to find their place in the market. They can’t do the same thing Apple is doing so they are trying something else. Overall their strategy might be working. There is some evidence but it’s hard to link directly to this strategy.
http://m.engadget.com/2012/11/01/android-75-percent-marketshare-136-million-shipped/
As you can see they are succeeding taking market share in phones. Though it seems Samsung is the biggest benefactor which terrifies Apple.
And same thing appears to be happening in tablets a lot slower.
http://www.huffingtonpost.com/mobileweb/2012/11/06/ipad-market-share-q3-2012_n_2079397.html
So for now the android manufacturers strategy seems to be working.
So I wouldn’t discount goggles attempts to deliver value to consumers just yet.
You are missing things like Capital Expenditures when worrking out how much it cost’s Apple to make a product, last year that was $9.5 billion excluding reail stores.
I am not missing anything. I am making a reply to the original writer of the blog post showing why he can’t except same level of service for a $700 dollar device vs a $300 dollar device. Especially when they cost about the same to build.
I am showing one of the big reasons why Apple can afford to offer their excellent service and retail presence and where it comes from. And how Google as a counter point simply doesn’t change enough for their devices to do this.
No one will offer you this “service” if they are loosing money on it. All the other issues you outline affect both google and apple equally. The fact that in the end apple changes two to three times for any product they sell is a fact just like the fact that google seems to charge a very very small markup on products they sell is also a fact (.
With such a small profit margin google at this time doesn’t have a strategy to match apples excellent customer service and retail presence. However the money savings they do pass on to you.
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I’m a big Apple fan. That said, Apple charges EUR 30,00 for advance replacement of an iPhone where I live (the Netherlands.) My collegue has had to do this two times, and ended up paying EUR 30,00 both times, for replacement of the SAME iPhone 4s.