Is this a reason why the Nexus 4 is so cheap?

[Ivanamanation#IM]

Because they're basically selling it at cost, just like the Nexus 7?

They're basically only targeting developers, with a great spec device, with great intuitive texture an esthetics, to get developers to develop applications for it? Only geeks an techys really know about the release date not the general public, really. Thats why its only sold through Google Play for now?

Thats why its unlocked, because most Nexus 4s would be their secondary device an they could change different providers for different data plans an such? Once rich an great applications are then created by the developers, then there are sold into the mass LTE an CDMA markets like VZW, AT&T and Sprint in the US?

Once the Nexus 4s start hitting those markets, they'll retail for $6-$700 a pop or take a contract. Is this how the game goes? Just wondering.


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[akhan47]

No, I think it's more due to the fact that they didn't include radios for LTE, only went for 8gb and 16gb models and also no micro SD card compatibility. These factors together helped keep the price low imo.

I'm very happy they did this. Don't really want to pay ?500 for a phone when I know I'll most likely be getting the upgraded Nexus the following year.

 

[Nasko]

The reason is simple. Google is trying to capture market share and mind share for the Nexus line, and is willing to give up hardware profits. Its make a lot of money elsewhere and doesn't need to make it on hardware. However in 2012 the only phone to capture mind share away from Galaxy line and Iphone was the Nexus 4. I am not sure that it would have been possible with a higher priced device without subsidies. The long term goal for Google is the Nexus name to be as recognizable as Galaxy or Iphone. Right now when i tell someone that my phone is a Nexus, they look at me like I told them my phone is martian. Doesn't mean anything to them, but they like it and remember the name. That's what Google wants and is achieving with the nexus brand, even though its a slow thing.

 

[Lanhoj]

Google is selling it at the price LG would charge a carrier so LG isn't losing anything, they're profiting like they usually would. Google isn't losing anything either, they just aren't making much if any profit off it.

When an OEM sells their flagship device to a carrier it's approximately the same price as the Nexus 4. The difference is, the carrier then either sells it subsidized at a lower cost which they recoup through monthly rate plans or like T-Mobile monthly device payments...or they sell it outright at a higher price to more or less balance out what they'd make over the contract.

The Nexus 4 might have cut some of the cost by leaving out most of the LTE radios, but it's likely pretty negligible. The device still has high-end specs that're still expensive. It's not like they went with budget parts.

The main reason is because Google doesn't profit from the hardware.
Amazon doesn't profit either (they might even sell them at a loss).
Both companies show how it should be done by Apple IMO since all 3 can easily afford it & make it up through profits from their respective ecosystem's marketplace.

 

[TheyStoleMyName]

Most cell phones don't cost what the retail cost. It's usually less than half of the retail cost. Carriers need to make a profit and so do the manufacturers. Plus there's no carrier bloatware. It's not that they leave features out and what not it's they only make a small profit from the manufacture.


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