Google and LG most likely make NO money from selling the Nexus 4 at the $299 pricepoint. The Nexus 4 is identical to the Optimus G, which is suppose to be LG's cash cow. Same proc, same screen. Tbe build actually looks nicer on the Nexus 4. The camera is a wash since the 13MP one sucks and the 8MP is identical on both. So literally the only difference is whether you want LTE or not. Is LTE (and a subjectively much uglier design) worth $200+ price premium for the Optimus G? The Nexus 4 also has pure Android which is also a big plus, So why is LG releasing the (much better) Nexus 4 at a no-profit price and undercutting their cash cow the Optimus G? They are barely making squat right now in the mobile phone space. This makes no business sense.
I'm pretty sure LG just builds the phone and gets paid for it, Google probably will sell it close to what they paid to get it built. So LG isn't losing money, Google is just breaking even or maybe barely losing.
Sent from my Galaxy Nexus using xda premium
Improving their brand image while simultaneously getting their brand name out there?
While not entirely the same, you could argue that with the Galaxy Nexus, it was fighting with the S2 and a little bit of the S3.
Yet Samsung managed to really make their push during that time period. People have tons of horror stories when it comes to LG. If they play their cards right with these devices, they'll have a much brighter future.
Sent from my Transformer Prime TF201 using Xparent Cyan Tapatalk 2
The Xiaomi Mi2 will also be selling at a loss ($310 vs a cost of $370), and has pretty much identical specs as the Nexus 4. I think they can manage to break even overall, especially with most sales going to the 16 GB version.
florelui001p said:
I'm pretty sure LG just builds the phone and gets paid for it, Google probably will sell it close to what they paid to get it built. So LG isn't losing money, Google is just breaking even or maybe barely losing.
Sent from my Galaxy Nexus using xda premium
Click to expand...
Click to collapse
X2
Google pays for it, and then they sell it to us with expensive taxes via Google Play :B
I'm assuming LG developed the phone for a flat contract price to Google.
Google is likely making little to nothing on selling the price.
They are likely straight up buying marketshare for android and enticing people to buy into their ecosystem while they make money off apps, movies, tv shows, music, and ads.
datwunkid said:
I'm assuming LG developed the phone for a flat contract price to Google.
Google is likely making little to nothing on selling the price.
They are likely straight up buying marketshare for android and enticing people to buy into their ecosystem while they make money off apps, movies, tv shows, music, and ads.
Click to expand...
Click to collapse
They sure are!
I will mostly likely be dropping the iPhone ecosystem for Android because of the Nexus 4 come November 13th. Eventually I will also convince others who rely on my smartphone knowledge on what to buy to get the Nexus 4. So it has done its job even if Google isn't making a profit off of the hardware. They will eventually make profit off of me from the Google Play content I (and many others I convince) purchase.
Excellent post datwunkid :good:
I think Google is taking the hit and selling it close to cost. You also have to factor in that the retail cost of some phones have carrier markup added in as well so that they can make some extra $$$ off people buying off contract. They're probably selling it close to cost and the Nexus line isn't really a big seller to begin with so nobody's really losing a boatload of money here. LG gets to have their name attached to what is looking to be an incredible Android phone (and DEAD SEXY!!!) which will get them back into the good graces of some of the Android fans out there. Also remember Google is an ad company - selling phones for profit isn't where they're making the lion's share of their money and while I'm sure they care somewhat about how well this device does, it'll barely have any effect on their bottom line.
Let's not kid ourselves. Google is definitely making money here. I know in the retail market, mark-up is routinely 1000%. I wouldn't be surprised one bit if LG can spit these phones out in mass production at $50 a unit or cheaper. Anybody that's had any experience in buying mass quantities knows that Google is making money.
When you see service providers selling phones out of contract for $600-$800, your seeing first hand the companies rape/screw the general public like they do best. Even when you buy a phone for a subsidized price from one of the big four, do you really think that are not still making money off the sale of the unit? Don't kid yourself...
giant22000 said:
Let's not kid ourselves. Google is definitely making money here. I know in the retail market, mark-up is routinely 1000%. I wouldn't be surprised one bit if LG can spit these phones out in mass production at $50 a unit or cheaper. Anybody that's had any experience in buying mass quantities knows that Google is making money.
When you see service providers selling phones out of contract for $600-$800, your seeing first hand the companies rape/screw the general public like they do best. Even when you buy a phone for a subsidized price from one of the big four, do you really think that are not still making money off the sale of the unit? Don't kid yourself...
Click to expand...
Click to collapse
You ever look at any tear downs of phones? The parts on this phone are probably worth two hundred or so dollars, plus assembly, warranty claims, marketing. There will be a thin margin, but it will be there. I don't think many carriers will pick up the phone, so it will only really appeal to people who avoid contracts, anyway.
Sent from my HTC Vision using xda app-developers app
It makes sense for LG to do it at little to no profit because releasing the phone would help their market and image in the long run if the phone is a success. Google is baking on the consumers to buy apps, books, music, and magazines from their store.
giant22000 said:
I wouldn't be surprised one bit if LG can spit these phones out in mass production at $50 a unit or cheaper.
Click to expand...
Click to collapse
Have you been drinking tonight by any chance? Your post has me curious :laugh:
Borteeo said:
You ever look at any tear downs of phones? The parts on this phone are probably worth two hundred or so dollars, plus assembly, warranty claims, marketing. There will be a thin margin, but it will be there. I don't think many carriers will pick up the phone, so it will only really appeal to people who avoid contracts, anyway.
Sent from my HTC Vision using xda app-developers app
Click to expand...
Click to collapse
Think of it this way. When it comes to building a pc, you can't build one as cheap as you can buy one from one of the big boys. Plain and simple, they buy parts by the 1000's. These parts are heavily discounted at a contracted, negotiated price when bought this way.
I can assure that NO company is going to put forth the effort for a small profit margin. That's just how the corporate world works. If it doesn't make good/excellent profits, it's simply not worth the time or effort.
y would you complain about something like this though. the price is a good thing :good:
No complaining here! I'm totally stoked about it's price point. Best bang for the buck bar-none in my book! Can't wait to order...
I can assure that NO company is going to put forth the effort for a small profit margin. That's just how the corporate world works. If it doesn't make good/excellent profits, it's simply not worth the time or effort.
Click to expand...
Click to collapse
Still I disagree about $50, there are actual documented break down of iPhone 4S hardware cost, is around $180, though the 5 is cheaper. Give the chinese slaves a break.
Sent from my R800x
Well here is the news Google partnered with lg because of the price as they are the only one who agreed to make phone at this price level. Its also get back lg to the market, despite their products are cool but their developers are sucks, lazy people wouldnt work on old devices to bring latest os so people like me promised won't buy lg product ever again, other company like Sony and Samsung refused Google to make smartphone with this spec for this price. But who cares about the partner as long as Google controls the os. I'm getting this as soon as it goes live for sale.
Sent from my Galaxy Nexus using xda app-developers app
Maybe Samsung doesn't want to create any more nexus phone just because of this. Their Galaxy S line and Note line will be ruined.
The same thing happens with the nexus 10, which is cheaper and FAR more specwise than note 10.1
Sent from my GT-I9100 using Tapatalk 2
qreffie said:
I think Google is taking the hit and selling it close to cost.
Click to expand...
Click to collapse
The iPhone 5 costs about 200$ (16gb I think). I don't think the Nexus will cost much more. So, Google will get money out of this
Google was earning money even with the 16gb a 249$
I you think it costs them that money to make a phone you are mistaken.
I have seen retail buy in prices for handsets in bulk, and those would raise your eye brows!
so manufacturing prices would be much less.
Related
lol i do.
yesterday i needed some quick cash because of a move im doing and i was short on my energy bill...
so i put my sprint galaxy nexus on craigslist for sale/ trade.
last week i got it new in the box for 150. a deal to me for sure.
i got a bunch of crap offers but eventually someone offered me their epic 4g touch and 100 cash for the gnex.
so we met up at a sprint store and called customer care because the store cannot do active phone swaps and we both went home happy.
right away i listed the phone on craigslist, within a few hours i got a few offers, mostly junk but one was or seemed to be worth while.
a white iphone 4 8gb, with case and charger, even trade. so telling her i was interested i posted the white iphone up on craigslist also forsale/trade before i even had it. i got many offers, a few low balls (lol even 50 dollars with the excuse that its outdated and old and the new iphone will be out this month lol), then a 225.00 offer, a 200 dollar offer, you get the idea. i entertained them all, but one of the guys ended up changing their minds and made a even better offer, he retracted his 200 dollar offer and said he would trade me his mint condition epic 4g touch with case,charger and 100 cash... BINGO lol, i quickly accepted.
how could i loose, i met up with the girl at 615pm to do the swap for my epic touch for her iphone 4, after thats done i wait for the guy who comes at 7 and we call sprint all over again and do another swap, it all works out and i leave with another 100 in cash and the same phone i came in with lol.
so i was tainted with a apple phone for about 10 mins... Lol it wasn't that bad but the screen was hard to adjust to.
anyone else flip on craigs? needless to say i have my epic back up on CL for hopefully another trade or sale.
i already got my epic touch running jellybean and honestly its not too much different then my gnex minus the lte which i dont have yet and the HD screen which is noticeable to me.
Seems kind of immoral to me. It's like abusing Wal-Mart return policies to make a buck. You're using Craigslist outside of its intended use for profit. But you do what you gotta do to make the bills work: I personally would not make a habit of "flipping phones".
alpha-niner64 said:
Seems kind of immoral to me. It's like abusing Wal-Mart return policies to make a buck. You're using Craigslist outside of its intended use for profit. But you do what you gotta do to make the bills work: I personally would not make a habit of "flipping phones".
Click to expand...
Click to collapse
lol immoral?
im using a public website that is made for buying,selling, and bartering.
thats exactly what im doing.
im not "abusing" or misusing anything, and its not a mega corporation where im scamming their return policies.
its a buy sell and trade website..
thats exactly what im doing.
in fact there are reality tv shows based on this same thing, that where they use outlets like craigslist, people do it with everything under the sun, from tvs, to cars.
im not ripping anyone off or telling people things that they arent.
im giving people what they want and im getting what i want.
exactly what the website is for.
When you start to talk about morality, you instantly are entering into a subjective paradigm in the philosophical/metaphysical sense. However, I do agree you're in a way taking advantage of peoples lack of knowledge on the tech you're trading. Is this immoral? Depends on how you define it. If both parties are happy and walk away from the deal feeling like their was an equitable exchange, then I personally don't think so. Ignorance is bliss I guess. Now, if you intentionally mislead the other party into believing they're getting a much better offer than they realize for your profit then yes this is, to me, immoral, but I don't think your doing this. It is the reason I believe the majority of advertisements and those working in the field are in some sense immoral, but this is getting off topic.
In short, I haven't done it and for me the amount of time and effort isn't worth the small return.
I didn't mean to imply you're ripping anyone off. I just find it interesting how one can make a buck nowadays. I stress the kind of part because I read about the iphone part and it boggles my mind how people are willing to pay so much for so little. I get that if the needs are met then it's fine. However it boggles me further how people can conclude the iphone 4 and the galaxy s2 phone is of equal value. Galaxy s2 clearly has better specs plus MIUI more than makes up for the iOS experience. I get that not everyone is gifted with our passion which is why I use the term "immoral" for someone who knowingly barters with this information in hand. But I do agree with l3lessed that if the girl is happy then that's what matters. Then I conclude that while the ends justifies the means this time, I wouldn't make a habit of this kind of business.
That said: I'm sure you can many people in the MP that has "flipped phone".
alpha-niner64 said:
I didn't mean to imply you're ripping anyone off. I just find it interesting how one can make a buck nowadays. I stress the kind of part because I read about the iphone part and it boggles my mind how people are willing to pay so much for so little. I get that if the needs are met then it's fine. However it boggles me further how people can conclude the iphone 4 and the galaxy s2 phone is of equal value. Galaxy s2 clearly has better specs plus MIUI more than makes up for the iOS experience. I get that not everyone is gifted with our passion which is why I use the term "immoral" for someone who knowingly barters with this information in hand. But I do agree with l3lessed that if the girl is happy then that's what matters. Then I conclude that while the ends justifies the means this time, I wouldn't make a habit of this kind of business.
Click to expand...
Click to collapse
Ahh I see.
I was just short this month and this way its legal Lol
Everyone was happy. In fact all the deals I did were brought to me, made by the other party.
I agree the iPhone to me isn't worth much but as everyone can see they have a huge faithful following, enough so to dump more premium phones (in our eyes) in order to have one.
Locally regular iPhone 4 non s versions are still selling more than galaxy s2s.
Its mind boggling to me actually.
Sent from my SPH-D710 using Tapatalk 2
I flip phones all the time. If i find a great deal then i will most definitely snatch it up. One thing I never do is low ball. I always offer them a fair price that's low enough for me to make a profit, yet sits well with conscience. Business on Craigslist is easy money if you can negotiate.
Sent from my iPad using Tapatalk HD
I can't see the immorality in his actions. He's entertaining offers from others and not misrepresenting his goods. If anything, I'm impressed by the fact that youre arranging Craigslist deals in advance and juggling it all. You should get into stocks or futures or something and make real money with your talents.
It's not immoral, nothing wrong with it.
I have done that once or twice, it's how I get "new phones for free" but honestly it takes too much time/effort/driving and to me is not really worth it. I do it like once a year to upgrade my phone but that's about it. It's not a bad way to get a decent device though, just be willing to put up with all the BS that goes along with it.
I actually prefer the MP here for the most part, except for a few items that are overpriced here that I want to buy or underpriced (compared to local prices) that I want to sell.
Moved to Off-topic.
Sent from my HTC Glacier using xda premium
guthrien said:
I can't see the immorality in his actions. He's entertaining offers from others and not misrepresenting his goods. If anything, I'm impressed by the fact that youre arranging Craigslist deals in advance and juggling it all. You should get into stocks or futures or something and make real money with your talents.
Click to expand...
Click to collapse
If I only knew where to begin.
I'm stuck at a dead end job for the last 8 years and live check to check.
Sent from my SPH-D710 using Tapatalk 2
TeeJay3800 said:
Moved to Off-topic.
Sent from my HTC Glacier using xda premium
Click to expand...
Click to collapse
I apologize I thought I was in the off topic section.
Sent from my SPH-D710 using Tapatalk 2
Damn, that's a really good idea. Never though of that. ;p
KayxGee1 said:
I flip phones all the time. If i find a great deal then i will most definitely snatch it up. One thing I never do is low ball. I always offer them a fair price that's low enough for me to make a profit, yet sits well with conscience. Business on Craigslist is easy money if you can negotiate.
Sent from my iPad using Tapatalk HD
Click to expand...
Click to collapse
Exactly.
Low ballers make me sick,but that's just a part of Craigslist.
Its not hard to do,but can be time consuming and irritating when you run into tire kickers and people who bs.
Throughout all the years I've used Craigslist for everything under the sun, from TVs,to fish tanks,to cars,refrigerators and probably other things I can't recall. But I've never have had one bad experience, never been robbed or put into any bad situations.
You just have to be smart and smell a bad situation before it happens.
Sent from my SPH-D710 using Tapatalk 2
intheb0x said:
Exactly.
Low ballers make me sick,but that's just a part of Craigslist.
Its not hard to do,but can be time consuming and irritating when you run into tire kickers and people who bs.
Throughout all the years I've used Craigslist for everything under the sun, from TVs,to fish tanks,to cars,refrigerators and probably other things I can't recall. But I've never have had one bad experience, never been robbed or put into any bad situations.
You just have to be smart and smell a bad situation before it happens.
Sent from my SPH-D710 using Tapatalk 2
Click to expand...
Click to collapse
I've never been robbed either. Just very nice people looking to buy and sell items.
If they want quick cash and I'm willing to buy, so be it. I take the time to relist the item and sit on it for a few days, a week, hell I've sat on an item for 3 months! It's all about time and effort. Here in NJ, there are really good deals. Business is just business.
Sent from my iPad using Tapatalk HD
alpha-niner64 said:
Seems kind of immoral to me. It's like abusing Wal-Mart return policies to make a buck. You're using Craigslist outside of its intended use for profit. But you do what you gotta do to make the bills work: I personally would not make a habit of "flipping phones".
Click to expand...
Click to collapse
So you feel the same about people that flip houses, cars, etc? Essentially you hate capitalism? Supply & demand, etc?
I made money on craigslist this pass week. I just sold my GS3 for $400 (which I bought new for $440 on eBAY) and with the money I bought a white EVO LTE in mint condition for $225 which I sold on Ebay for $340 ($300 after fees and ship).
I list it on XDA http://forum.xda-developers.com/showthread.php?t=1900703 but the memebers here are to cheap to even recognize a good deal.
shook187 said:
I made money on craigslist this pass week. I just sold my GS3 for $400 (which I bought new for $440 on eBAY) and with the money I bought a white EVO LTE in mint condition for $225 which I sold on Ebay for $340 ($300 after fees and ship).
I list it on XDA http://forum.xda-developers.com/showthread.php?t=1900703 but the memebers here are to cheap to even recognize a good deal.
Click to expand...
Click to collapse
Very nice.
I made some additional moves on Craigs list recently which I didn't post about.
I traded my gs2 for a white 16gb 4s which in return i traded for a new in the box black evo lte.
Sad to say I'm surprised that the resale value on these phones aren't higher, because the lte is not too much different than the gs3...
Sent from my EVO using Tapatalk 2
I have for years!
Sent From My Amaze.
I think it depends on your local community. For me craigslist is a massive headache full of flakes and people wanting msrp for 2 year old used tech.
I can't even tell you how many times I've relied to ads and been ignored.
Sent from my Galaxy Nexus using Tapatalk 2
Can not for the life of me see how this phone is so cheap considering the specs and build quality. Anybody had any hands on experience with the phone find any flaws? If I get the money I'm almost definitely going to buy this. I just hope that the battery life and sound quality are decent as to me it just seems too cheap to be perfect. I also hate the snobbery from the iPhone users who have seen the price of this and think what a load of cheap garbage but I'd love for this to prove them wrong.
It's not that this phone is cheap, it's that unlocked phones are CRAZY overpriced.
There is no catch, Google wants to get consumers away from carrier control and push their Android ecosystem. Win/win for them.
sharpinator said:
Can not for the life of me see how this phone is so cheap considering the specs and build quality. Anybody had any hands on experience with the phone find any flaws? If I get the money I'm almost definitely going to buy this. I just hope that the battery life and sound quality are decent as to me it just seems too cheap to be perfect. I also hate the snobbery from the iPhone users who have seen the price of this and think what a load of cheap garbage but I'd love for this to prove them wrong.
Click to expand...
Click to collapse
Search Nexus 4 reviews on Google, I'm sure you bound to find many advantages and disadvantages. Biggest ones to concern me is the glass back breaks easily and that storage wise you only get 8GB or 16GB. Not having LTE isn't a problem since I'm with T-Mobile.
They are probably only barely breaking even on the costs; phones like the Galaxy S III and the iPhone 5 have a unit cost much lower than their retail cost. Gotta make money somehow. I'm not sure what Google's motivations are with setting these prices, but they're not making a profit from them.
DanielBeaver said:
I'm not sure what Google's motivations are with setting these prices, but they're not making a profit from them.
Click to expand...
Click to collapse
Probably pushing stock android and android development. Google isn't looking to get a profit on the phone, but they are looking to get a profit on what you do with the phone (aka: search).
DanielBeaver said:
They are probably only barely breaking even on the costs; phones like the Galaxy S III and the iPhone 5 have a unit cost much lower than their retail cost. Gotta make money somehow. I'm not sure what Google's motivations are with setting these prices, but they're not making a profit from them.
Click to expand...
Click to collapse
That's very interesting Daniel. It kind of sounds like how Sony sold the ps3 at a much lower price than it should be sold. They were losing money to push blu ray so maybe google are selling a really "affordable" High end phone to push android that one step further than iPhone.
Its Google flexing a little, its all about market share so break even is fine. Im aliitle concerned about when motorola takes the lead, though that could be a year or two away. no complaints if they want to give me a break. Im on t-Mobile too so no big deal LTE.
The catch is they know you will buy apps. + you may be tempted to get one for other peeps in your life as they are cheap and its xmas time. These peeps, will also buy apps.
/shrug
GoreTan said:
Search Nexus 4 reviews on Google, I'm sure you bound to find many advantages and disadvantages. Biggest ones to concern me is the glass back breaks easily and that storage wise you only get 8GB or 16GB. Not having LTE isn't a problem since I'm with T-Mobile.
Click to expand...
Click to collapse
I suppose the glass breaking could be an issue but then again I treat my phones like the crown jewels so I doubt that would be a huge problem for me. Also being in the UK on three I get decent HSPA speeds so the lack of LTE or 4G is absolutely irrelevant to me and most of the UK. The faster phones processors are getting the faster web browsing is with 3g anyway so I'm not fussed for 4g at the moment.
Right, they want Android everywhere and this is how Android wins eventually..not to mention it costs them squat per phone to build..
Sent from my Nexus 7 using xda app-developers app
So it's a marketing ploy to really push android. I'm fine with that As long as they weren't sacrificing any quality with the phone. This is surely exciting. I hope I can get one as soon as possible. I'm a huge phone geek (well that's obvious being on XDA as we all are) and I've never seen anyone with a Nexus device in the UK so I think it will be great If people in the UK will start getting them. I've always been with sense so vanilla will be a completely new experience.
I came here immediately looking for posts that said that no LTE is the catch, didn't see any to my surprise
espionage724 said:
I came here immediately looking for posts that said that no LTE is the catch, didn't see any to my surprise
Click to expand...
Click to collapse
haha I'm so glad no one has said it. It barely matters to anyone outside of the US!
As great as this price is to get Android out into the world more, I just have a feeling that since the phone is only being sold on the play store for the (majority of people to buy) I am concerned that if they dont go all out on commercials (which they should of started with already IMO) then I have a feeling that they wont get many new people buying the phone.
sharpinator said:
Can not for the life of me see how this phone is so cheap considering the specs and build quality. Anybody had any hands on experience with the phone find any flaws? If I get the money I'm almost definitely going to buy this. I just hope that the battery life and sound quality are decent as to me it just seems too cheap to be perfect. I also hate the snobbery from the iPhone users who have seen the price of this and think what a load of cheap garbage but I'd love for this to prove them wrong.
Click to expand...
Click to collapse
Not sure there's a catch. I don't like the glass back. Seems like they're copying Apple. I also don't ;like how you can't remove the battery. They wear out after a while.
I hope hope hope that they improved the camera. When the Galaxy Nexus was released, it was promised that it took pictures instantly. This was an improvement from my older Androids which used to take 2-5 seconds to focus and snap a pic. However, the camera on the Galaxy Nexus was weak as hell. Grainy and blurry in low light and only 5 MP..
Most likely, Google is making a limited profit with this device because they just want to get it out there.
tweaked said:
The catch is they know you will buy apps. + you may be tempted to get one for other peeps in your life as they are cheap and its xmas time. These peeps, will also buy apps.
/shrug
Click to expand...
Click to collapse
That's what I'm thinking. I'm sure the bulk of their profit from Android is based on the play store. Lower the cost of phones, get them in to the hands of more people, and in turn the people buy more apps from the play store. There's their profit:thumbup:
Sent from my A100 using xda app-developers app
Cost for making an iPhone 5 is $389.XX. Read it in the Time magazine. This may answer the question.
Its not marketing.. its just how they do money. Google is the second most profitable company in the world. And now of that was accomplished by selling hardware. Selling hardware at cost that boosts their income method is the best way to stay in "what they best". Plus it has some perks like happy customers, injected competition and market confidence.
On the other side of the medal, you have apple, the most profitable company in the world, that makes their money on high margin.
Both ways are legit ways to make money, but me, personally I prefer the half priced one
No, catch. Like what others have posted Google wants people using their ecosystem.
I think its great they are pricing it at cost probably, I'm sure there is profit but very little. I'm tiredof carriers and manufacturers raping customers with their crazy markups.
I've never had my phone battery go bad on me. The battery is easily accessible via 2 screws on bottom of phone, no biggie.
LTE is not really a deal breaker for me, I'm in las Vegas and get 14mbps on T-mobiles faux G.
Sent from my Nexus 7 using Tapatalk 2
So what do you guys think?
I'm still puzzled by how Google can sell basically the same phone as the Optimus G for half the price.
Benchmarks show heat issues with the N4 and very low heat tolerances before the CPU/GPU starts throttling massively cutting performance basically in half.
So maybe when Google approached LG to build the N4 and told them they need to sell it for $299 off contract, LG was like..,"hmmm.. we do have a bunch of rejected bin parts from the Optimus G we could sell for half price. Deal, we'll build the N4 for $299 Cha-Ching!!$!"
Manufacturers bin parts all the time, Intel, Nvidia ect. bin their CPU's and GPU's and basically put the rejected ones in lower end models and downclocks them.
LG makes some amazing IPS $1000 panels for Apple and Dell, the ones that don't cut it get sold for basically nothing and put into cheaper non-brand name cases (Yamakasi,Acheiva ect) and sold for $300.
Makes me think that maybe LG is doing the same with the N4 line up. What do you guys think? These thermal issues the N4 is facing is pointing me in that direction. Lower bin parts.
No
Sent from my Galaxy Nexus using xda app-developers app
Interesting approach. But Google would go nuts if LG would so something like that. I can't really give an educated answer but I personally don't think they do. Just a feeling.
Dan37tz said:
So what do you guys think?
I'm still puzzled by how Google can sell basically the same phone as the Optimus G for half the price.
Benchmarks show heat issues with the N4 and very low heat tolerances before the CPU/GPU starts throttling massively cutting performance basically in half.
So maybe when Google approached LG to build the N4 and told them they need to sell it for $299 off contract, LG was like..,"hmmm.. we do have a bunch of rejected bin parts from the Optimus G we could sell for half price. Deal, we'll build the N4 for $299 Cha-Ching!!$!"
Manufacturers bin parts all the time, Intel, Nvidia ect. bin their CPU's and GPU's and basically put the rejected ones in lower end models and downclocks them.
LG makes some amazing IPS $1000 panels for Apple and Dell, the ones that don't cut it get sold for basically nothing and put into cheaper non-brand name cases (Yamakasi,Acheiva ect) and sold for $300.
Makes me think that maybe LG is doing the same with the N4 line up. What do you guys think? These thermal issues the N4 is facing is pointing me in that direction. Lower bin parts.
Click to expand...
Click to collapse
It is very possible and happen a lot in computer world.
But we can't know for sure. Both LG and Google won't say anything about this.
It costs apple like $166 to make an iPhone..google is making money..believe it.The markup is insane on phones..
Sent from my Nexus 7 using xda app-developers app
Dan37tz said:
So what do you guys think?
I'm still puzzled by how Google can sell basically the same phone as the Optimus G for half the price.
Benchmarks show heat issues with the N4 and very low heat tolerances before the CPU/GPU starts throttling massively cutting performance basically in half.
So maybe when Google approached LG to build the N4 and told them they need to sell it for $299 off contract, LG was like..,"hmmm.. we do have a bunch of rejected bin parts from the Optimus G we could sell for half price. Deal, we'll build the N4 for $299 Cha-Ching!!$!"
Manufacturers bin parts all the time, Intel, Nvidia ect. bin their CPU's and GPU's and basically put the rejected ones in lower end models and downclocks them.
LG makes some amazing IPS $1000 panels for Apple and Dell, the ones that don't cut it get sold for basically nothing and put into cheaper non-brand name cases (Yamakasi,Acheiva ect) and sold for $300.
Makes me think that maybe LG is doing the same with the N4 line up. What do you guys think? These thermal issues the N4 is facing is pointing me in that direction. Lower bin parts.
Click to expand...
Click to collapse
Unlikely tbh. Good comspiracy thogh I think google subsidizes it to sell it almost above cost. LG doesn't, thus non play countries are screwed. EU wouldn't allow them to sell it at cost or below so the 8GB is slightly above cost, and they know that many people won't buy that, so the 16GB is all profit.
Dan37tz said:
So what do you guys think?
I'm still puzzled by how Google can sell basically the same phone as the Optimus G for half the price.
Benchmarks show heat issues with the N4 and very low heat tolerances before the CPU/GPU starts throttling massively cutting performance basically in half.
So maybe when Google approached LG to build the N4 and told them they need to sell it for $299 off contract, LG was like..,"hmmm.. we do have a bunch of rejected bin parts from the Optimus G we could sell for half price. Deal, we'll build the N4 for $299 Cha-Ching!!$!"
Manufacturers bin parts all the time, Intel, Nvidia ect. bin their CPU's and GPU's and basically put the rejected ones in lower end models and downclocks them.
LG makes some amazing IPS $1000 panels for Apple and Dell, the ones that don't cut it get sold for basically nothing and put into cheaper non-brand name cases (Yamakasi,Acheiva ect) and sold for $300.
Makes me think that maybe LG is doing the same with the N4 line up. What do you guys think? These thermal issues the N4 is facing is pointing me in that direction. Lower bin parts.
Click to expand...
Click to collapse
Ah stop this kind of conspiracy. Say it when you have some proof.
Richieboy67 said:
It costs apple like $166 to make an iPhone..google is making money..believe it.The markup is insane on phones..
Sent from my Nexus 7 using xda app-developers app
Click to expand...
Click to collapse
this
+ selling it for a lower price means selling more. More sold devices result in more money through play store (apps, music, books, movies...)
Another dumb conspiracy theory.
Mods, we need a "dumb conspiracy theories because I wasn't able to get one" thread to consolidate these into.
If this were the case, you know warranty returns and repairs and everything else would drive up the cost for both LG and Google, no?
Richieboy67 said:
It costs apple like $166 to make an iPhone..google is making money..believe it.The markup is insane on phones..
Sent from my Nexus 7 using xda app-developers app
Click to expand...
Click to collapse
Not to mention the cost of brick and mortar stores as well as the amount of advertising that Apple does vs what Google does for the Nexus devices. Adding more advanced technology, like LTE radios and microSD readers will also mean higher costs (perhaps not a huge amount, but additional costs, none the less).
Google is in the search business, ad business and by getting people onto their phones they are also getting people into the google eco system its like apple believe it or not, people buy into it because they like the product at first but before they know it all their music is on itunes and they are buying apps from the app store all making apple money. Same applies there isnt much you can do on an android phone without making google money one way or another. either from the ads displayed or searches completed then there is play music which is aggressively priced for digital download. coincidence. no they want you locked into all things google. So by subing the phone initially they will predict the revenue made through other means will counter that,
so no it is not made from reject parts
also why would LG even care if this is successful. They make the same amount per handset as selling directly to distributors just google is acting as the distributor and lowering the price by subsidising it.
If i was a manufacturer like LG i would hope it sold in its millions as it would make me as a manufacturer some quick cash that I can then pump back into future R&D and manufacturing processes meaning it can compete better on par with its rivals
Simple really
hbkmog said:
Ah stop this kind of conspiracy. Say it when you have some proof.
Click to expand...
Click to collapse
Well I'm still kind of lost why the performance of this device suffers so much compared to other phones with the same chipset.
Hell for example the newly introducted HTC DNA which uses the identical chipset S4 pro, is pulling in over 8000 in quadrant! It's also pushing a 1080p screen with 440ppi!!!
Then we have the N4 here, with much less pixels to tax the GPU/CPU and it's pulling in 4000 Quadrants. There is something majorly wrong here.
I don't think it's the design of the phone, the N4 is not a super thin lightweight device. It's pretty thick so there should be plenty of room inside for heat dissipation.
I also don't think it has anything to do with software, the DNA is running 4.1 Jellybean, with a whole bunch of Verizon crap on it.
The N4 is running 4.2 Pure Jellybean, which is basically the same just with a couple camera tricks, a new keyboard and no crapware to slow it down. It's a pure unaltered android software so if it really was just an issue with the kernal or rom, Google would have fixed it easily and immediately with the latest OTA. That OTA didn't do crap and it still suffers from the performance issues.
Makes me believe it's an actual problem with the chipset itself, a lower bin set.
its simply down to power management which others incorporate where as the N4 has not as its not a feature baked into android. However devs will come up with these options as add ons and you will see where you can tweek the processor
Nope nope nope
ok the thing is these phones are about $700 with no sub from carrier. google is shelling out about $380 a unit for the phone to be sold at the price they are being sold for $299 and $349us or $309 or $359 cnd. that price is subsidize by google. so to answer the question of OP no its not cheaper parts for the cheaper phone! the part for the phone is still the same cost it just google will be making their money back on ads and playstore purchase and also google drive upgrades.. I mean $380 a unit is a lot but if google is truly the ad's king they will rake in the dough from all the revenue of that which would mean peanuts for $380 a phone!
xdviper said:
If this were the case, you know warranty returns and repairs and everything else would drive up the cost for both LG and Google, no?
Click to expand...
Click to collapse
The thing is Google never advertised that the N4 should achieve a certain score on a benchmark. As far as they're concern, as long as the device runs their software smoothly, it doesn't matter what the benchmarks say.
Alicklee said:
ok the thing is these phones are about $700 with no sub from carrier. google is shelling out about $380 a unit for the phone to be sold at the price they are being sold for $299 and $349us or $309 or $359 cnd. that price is subsidize by google. so to answer the question of OP no its not cheaper parts for the cheaper phone! the part for the phone is still the same cost it just google will be making their money back on ads and playstore purchase and also google drive upgrades.. I mean $380 a unit is a lot but if google is truly the ad's king they will rake in the dough from all the revenue of that which would mean peanuts for $380 a phone!
Click to expand...
Click to collapse
I would guess it costs them well under $200 for them to make this phone..the optimus also..
Sent from my Nexus 7 using xda app-developers app
This thread makes my head hurt. I gave it a 1 out of 5 stars because there is no option for 0 star. By this logic then I suggest you buy the LG Optimus G instead.
Google and T-Mobile get the device from LG. Google is selling the Nexus 4 for cheap because they have lots of money. T-Mobile is selling the Nexus 4 at $500 because they like to rip off people. The end.
do you even know what binning is or how it actually works?
I think LG of all companies wanted to do the Nexus because they wanted to gain a better smartphone manufacturer image. What better way to do this by doing a highly anticipated phone like this? Think of all the posts trashing LG about their phones (including me). I was so pissed when I found out. But the more I think about it, most of the issues I've had with LG phones have been software related. Hopefully with stock Android, the phone will regain the trust from the masses. But I highly doubt LG would make a crappy phone to try and rebuild their presence as a smartphone manufacturer.
Sent from my LT30at using xda app-developers app
As most(if not all) of us watch google i/o, google released the galaxy s4 with stock android, as well as "prompt" future updates. What do you guys think this means for the future of nexus do you think companies will continue to build phones for google when they can just appeal to everyone and relase a version of their flagship with stock android?
I guess I never really thought about it yet. That's a good point though. I just got into the Nexus family around a month and a half ago and I already feel at home. If there is not a future for Nexus devices, I will be extremely sad. Yeah, you still get pure Android, plus an unlocked bootloader, but there's just something about having a Nexus. I guess I just feel unique having it, you know? I'm not just another guy with a Galaxy S phone. Plus, having a Nexus phone kind of shows that you're a power user/developer. I dunno...I just really love my Nexus 4 and want to be able to buy the next one when I'm ready.
That all said, it makes perfect sense. I'm pretty sure Google sells the Nexus at a loss. And if that's not enough, you see threads on here all the time with people finding the smallest reasons for getting an RMA, reasons that aren't even valid but Google fulfills them anyway. Not only that, but people will brick their Nexus cuz they're stupid and come here to ask what they can do to RMA. They do this when it was CLEARLY their fault for bricking it and they think Google should have to cover the cost for a new one because they (the person) flashed a ROM/kernel for a different phone. If I were Google, I would probably be looking at this option, sadly.
the S4 isnt the only non nexus that has been released in the past with pure android, nor will it be the last. htc has released stock android phones before, so has lg. sony has even been working with aosp for the xperia http://techcrunch.com/2013/04/23/so...n-source-project-for-the-xperia-z-smartphone/
Here's the deal Nexus gives you the most bang for your buck. No one else gives you that. The N4 is half the price of the S4. The next Nexus phone will be a power house of hardware for a bargain.
Sent from my Nexus 4 using xda app-developers app
simms22 said:
the S4 isnt the only non nexus that has been released in the past with pure android, nor will it be the last. htc has released stock android phones before, so has lg. sony has even been working with aosp for the xperia http://techcrunch.com/2013/04/23/so...n-source-project-for-the-xperia-z-smartphone/
Click to expand...
Click to collapse
This, I remember the biggest reason I bought my G2 was due to stock Android. It might not have been AOSP, but was close enough. I kept it running until I got my Nexus, and it was even running 4.2.
The Nexus lines future will always be as bright as the Sun!
galaxys said:
The Nexus lines future will always be as bright as the Sun!
Click to expand...
Click to collapse
lol i hope your right about that one. I just don't want it to be to the point that nexus users get the crap specs from an OEM that is more worried about their flagship. Why should they go all out on a nexus device when they can provide each type of consumer what they want...a version with either their skinned version of android or pure android. Just playing devil's advocate lol...
Simple there contracted to. If you don't fulfill your contract you don't get paid. To be honest I almost bought a S3 cuz I didn't do much research before buying a phone. The nexus is the best kept secret from none rooters, flashers, etc. Thank god I do tons of research before buying anything and troll xda
Sent from my Nexus 4 using xda app-developers app
Galaxy S4 is not the first device reintroduced in the i/o with stock android, back in 2011 or 2010 google introduced Galaxy Tab 10.1 with stock honeycomb in it.
And for AOSP support, not every device shipped with vanilla android in it get an AOSP support.
Sent from my Nexus 4 using Tapatalk 2
I don't get the reaction to Samsung's Google edition S4. It isn't a Nexus and shouldn't be compared with a Nexus. The Nexus product line is first and foremost designed by Google then built by their respective manufacturers. The S4 doesn't even follow the button layout for Android! This Google edition S4 is just purely software and since I assume that Samsung will be the ones responsible for maintaining the software, it'll still be second class compared to the Nexus line when it comes to the latest and greatest Android version.
intersectRaven said:
I don't get the reaction to Samsung's Google edition S4. It isn't a Nexus and shouldn't be compared with a Nexus. The Nexus product line is first and foremost designed by Google then built by their respective manufacturers. The S4 doesn't even follow the button layout for Android! This Google edition S4 is just purely software and since I assume that Samsung will be the ones responsible for maintaining the software, it'll still be second class compared to the Nexus line when it comes to the latest and greatest Android version.
Click to expand...
Click to collapse
Nexus 4 is based on LG Optimug G. It is almost like a little redesigned Optimus G with Google's software. SGS4 Google Edition isn't redesigned, but also got Google's software. It will be sold through Play Store, it was revealed on Google I/O by Hugo Barra and it was said that it will get updates at the same time as other Google's devices. So like it or not, SGS4 Google edition could be easily called Nexus 5. I guess they didn't want to launch new Nexus only a few months after LG Nexus 4 became widely available.
Nexus 4 is very good phone, the best for its price, but got some problems - thermal throttling, cracked glass on back, which isn't cheap to replace due to internals on backcover, limited internal space and lack of SD cards, camera isn't very good. Other than that, it is very good phone. SGS4 got great hardware, but software is its weak point and I didn't want to get another Galaxy S phone because of that. But now SGS4 Google Edition is very tempting, because finally great hardware will get great software + fast updates.
The Galaxy S4 Google Edition is not a Nexus device, as much as Samsung fanboys would believe it is.
Apart from Google calling it the Nexus S4, planning to update it timely and selling it through the play store.
I'm sure Google has nice plans for their Nexus series. Or will stop making them. Which I highly doubt! Hope.
Also I don't know how anyone could get themselves to believe they sell a product at a loss.
Sent from my Nexus 4 using xda premium
+1
Sent from my Nexus 4 using Tapatalk 2
Google/Android have a confusing agenda of where they want to go with the Android platform.
I guess their agenda is to just throw the kitchen sink at everyone and everything and hope to conquer the mobile platform that way.
I thought they had a certain way they were going to do the "Nexus" line.
Nexus is "pure google"
"Prompt" updates
"state of the art" hardware (with horrible camera..ha ha)
affordable pricing
The Galaxy Nexus and Nexus 4 (especially with the price reduction of the original GNex to $399 than $350).
I personally do not think the pure Galaxy S4 will be a big seller in the USA. Most Americans are on family plans with post paid services like ATT or Verizon.
Paying full $650 price for a smartphone only makes sense if you go prepaid and have 1-2 lines. Most Americans on post paid have 4-5 lines where subsidized phones make sense.
No one remembers the original iPhone was $499/599. It was not a big seller except for techies or people who have too much money. When Apple dropped the price to $399 it boosted sales quickly.
There is still plenty of money to be made by selling phones below $400. Most top of the line smartphone cost $200-250 to make. So profit margin is still there.
---------- Post added at 01:07 PM ---------- Previous post was at 01:02 PM ----------
myturbo1 said:
I'm sure Google has nice plans for their Nexus series. Or will stop making them. Which I highly doubt! Hope.
Also I don't know how anyone could get themselves to believe they sell a product at a loss.
Sent from my Nexus 4 using xda premium
Click to expand...
Click to collapse
I know. It costs $200-250 to make a smartphone with high end specs. Even accounting for advertising costs. Their is still $50-100 profit to spare.
I think Google purposely kept the 8GB/16GB with no SD to secure profits.
I might have missed something but does anyone else think that the fact Google bought Motorola mobility means they are going to eventually stop dependence on other phone manufacturers? It sucks to build awesome software and have to rely on other companies to put it on. Then said company delays in putting updated software on devices which in turn makes people upset they got android in the first place.
I know kinda out there but i can kinda see how this would work.
Sent from my Nexus 4 using xda premium
myturbo1 said:
Also I don't know how anyone could get themselves to believe they sell a product at a loss.
Click to expand...
Click to collapse
Because they probably do. Let's break it down. It'll be quite a journey, so pack a lunch.
The cost of materials alone cost, let's say, $250. That's only $50-$100 "profit" per unit. Considering how many units they sell, that's still a large amount of money, right? Well, that $250/unit cost doesn't cover labor (that I know of, I could be wrong; in which case disregard this point, there are plenty more). They have to pay the people to assemble the phones. Then they have to pay to ship it over-seas to get it to the U.S. Don't quote me here, but I think companies have to pay taxes on commercially-imported things. You know the U.S. government want their cut. Even if that's not true, don't worry; there are plenty of other things to eat that $50 up.
Research and Development is probably the biggest cost of any small electronics device. You have to pay those engineers to design your phone with the hardware you want and make it the size you want. I'm no pro or anything, but I'm pretty sure R&D has beta-testing of the hardware from the prototype all the way to the finished product. That's hardware that will never see light of day.
I take that back about R&D being the most costly thing about making electronics. Let's touch on the point I made of people RMA'ing. When it's legitimate, it costs the company a ridiculous amount of money. I don't even know what they do with the phones that are RMA'd, but I don't see them selling refurbished phones on the Play store. That's money down the drain. And that's when it's legitimate. Think about those guys that RMA because they are idiots and flashed the wrong kernel to the phone. Google still fulfills those RMA's! They lose so much doing this, it boggles my mind.
Now let's look at why. Why would Google knowingly sell devices at a loss? It isn't exactly the best business practice to sell things and lose money on them. First, let's look at the developers. This phone is a "developers" phone. If you're developing for Android, you are probably using a Nexus to test your app and tweak it. When you're done developing your app, what do you do? Publish it in the Play store. All these "app stores" you see everywhere are huge cash cows, and they cost almost nothing to keep going. Throw an app store up, shave a little off the top of every purchase, and kick back while the money flows in. Secondly, and this is true for every company that sells anything, there is the reputation of the company/product. You make a solid phone and sell it for pretty cheap, you get happy customers. Happy customers tend to also be returning customers. I know people that buy iPhones simply because it's called "iPhone", and has the apple on the back of it. That's purely the reputation of the phone. They were happy with their previous phones, so they simply go to the updated version of it when they need to buy another one. I picked on iPhones because it's probably the most widespread example of this, plus it has to do with a phone, which is what we're talking about.
The nexus line is Googles way of thanking developers and phone enthusiasts, they are ones that buy the phone
Sent from my Nexus 4 using xda app-developers app
---------- Post added at 04:26 PM ---------- Previous post was at 04:21 PM ----------
Johmama said:
Because they probably do. Let's break it down. It'll be quite a journey, so pack a lunch.
The cost of materials alone cost, let's say, $250. That's only $50-$100 "profit" per unit. Considering how many units they sell, that's still a large amount of money, right? Well, that $250/unit cost doesn't cover labor (that I know of, I could be wrong; in which case disregard this point, there are plenty more). They have to pay the people to assemble the phones. Then they have to pay to ship it over-seas to get it to the U.S. Don't quote me here, but I think companies have to pay taxes on commercially-imported things. You know the U.S. government want their cut. Even if that's not true, don't worry; there are plenty of other things to eat that $50 up.
Research and Development is probably the biggest cost of any small electronics device. You have to pay those engineers to design your phone with the hardware you want and make it the size you want. I'm no pro or anything, but I'm pretty sure R&D has beta-testing of the hardware from the prototype all the way to the finished product. That's hardware that will never see light of day.
I take that back about R&D being the most costly thing about making electronics. Let's touch on the point I made of people RMA'ing. When it's legitimate, it costs the company a ridiculous amount of money. I don't even know what they do with the phones that are RMA'd, but I don't see them selling refurbished phones on the Play store. That's money down the drain. And that's when it's legitimate. Think about those guys that RMA because they are idiots and flashed the wrong kernel to the phone. Google still fulfills those RMA's! They lose so much doing this, it boggles my mind.
Now let's look at why. Why would Google knowingly sell devices at a loss? It isn't exactly the best business practice to sell things and lose money on them. First, let's look at the developers. This phone is a "developers" phone. If you're developing for Android, you are probably using a Nexus to test your app and tweak it. When you're done developing your app, what do you do? Publish it in the Play store. All these "app stores" you see everywhere are huge cash cows, and they cost almost nothing to keep going. Throw an app store up, shave a little off the top of every purchase, and kick back while the money flows in. Secondly, and this is true for every company that sells anything, there is the reputation of the company/product. You make a solid phone and sell it for pretty cheap, you get happy customers. Happy customers tend to also be returning customers. I know people that buy iPhones simply because it's called "iPhone", and has the apple on the back of it. That's purely the reputation of the phone. They were happy with their previous phones, so they simply go to the updated version of it when they need to buy another one. I picked on iPhones because it's probably the most widespread example of this, plus it has to do with a phone, which is what we're talking about.
Click to expand...
Click to collapse
R&D is done by the contractor, which I'm sure is already spent by the contractor since they build phones, the people manufacturing the phones are in sweat shop conditions so I don't think there paid much. My family does a lot of over seas manufacturing and you would be surprised at how much it really cost
Sent from my Nexus 4 using xda app-developers app
Tunderpimp said:
The nexus line is Googles way of thanking developers and phone enthusiasts, they are ones that buy the phone
Sent from my Nexus 4 using xda app-developers app
---------- Post added at 04:26 PM ---------- Previous post was at 04:21 PM ----------
R&D is done by the contractor, which I'm sure is already spent by the contractor since they build phones, the people manufacturing the phones are in sweat shop conditions so I don't think there paid much. My family does a lot of over seas manufacturing and you would be surprised at how much it really cost
Sent from my Nexus 4 using xda app-developers app
Click to expand...
Click to collapse
Not really. It's a consumer device in the same arena as the Galaxy series, however Google has failed miserably at advertising and pushing their product due in part to poor management. The same corporate structure that gives rise to things like AOSP is not the ideal format for selling items across multiple countries and cultures. They still cannot definitively say what the end goal is with the Nexus line. If they're trying to steer people into Google services then they need to figure out how to advertise and sell, which in this country means getting in bed with the carriers, and that will not change no matter how much these forums boast about prepaid plans. That doesn't even begin to get into the area of "open source" and how no one outside of this community gives a damn.
Sent from my Nexus 4 using Tapatalk 2
Google does subsidize the Nexus line. There was an argument a few weeks back about if google subsidizes it's nexus here it is
"We already recognize that the company is likely subsidizing their own pricing on the Nexus 5 at $349 while the carriers are selling it off contract for $100 more. "
http://9to5google.com/2013/11/15/ed...-is-to-out-nokia-nokia-and-its-going-to-work/
I'm sure Google make money from each device sold.
Cell companies make money, they make high MSRP, so make even more money. It is what they do.
jimmyjoebob said:
I'm sure Google make money from each device sold.
Cell companies make money, they make high MSRP, so make even more money. It is what they do.
Click to expand...
Click to collapse
Did you read the article? Google is not trying to make money from the hardware in nexus or Motorola it's about the software and ad sales and search engine proliferation
That's not proof of anything. It's one guy's opinion that Google is "likely" subsidizing them.
How much do you think it costs to build a smartphone? You're looking at maybe $200-$250 for material costs and then a bit for marketing. When Apple (for example) sells someone a 64gb iPhone for $849, there's roughly $600 of pure profit worked into that price. The only difference with the N5 is that Google is selling the phones basically at cost rather than artificially inflating a $200 bill of materials with a bunch of profit. There's no "subsidizing" going on.
maxpower7 said:
That's not proof of anything. It's one guy's opinion that Google is "likely" subsidizing them.
How much do you think it costs to build a smartphone? You're looking at maybe $200-$250 for material costs and then a bit for marketing. When Apple (for example) sells someone a 64gb iPhone for $849, there's roughly $600 of pure profit worked into that price. The only difference with the N5 is that Google is selling the phones basically at cost rather than artificially inflating a $200 bill of materials with a bunch of profit. There's no "subsidizing" going on.
Click to expand...
Click to collapse
In other words you just proved me correct. If a phone costs 250 to build the other costs would be more than 100 dollars and therefore the point is not to make a profit on nexus and now Motorola's hardware ( which neither have ever brought a profit) it is to proliferate google services and Ad revenue. All the while giving the consumer the affordability in cheaper phones while increasing their reach with their services.
AndreaCristiano said:
If a phone costs 250 to build the other costs would be more than 100 dollars
Click to expand...
Click to collapse
That's pure speculation on your part unless you've actually seen Google's financial data. I really don't think that marketing costs for the N5 add up to more than 100 bucks per phone. What other costs are you taking into consideration?
I agree, it's just an opinion.
However, Google's Motorola phone effort is more likely trying to kill the competition (Apple, Samsung, etc) by lowering prices while maintaining state of the art performance. Samsung sees the writing on the wall and is trying to establish an OS, app and tune market, etc.
If the components cost x and the phone sells for y, there is a huge missing piece, a few actually. Development costs, qa, regulations, etc.
In the case of android, and especially the nexus line software development is nill. the Dev was going to happen regardless the nexus. Drivers, and things like that of course aren't free, so there is that software and hardware integration.
Anyway, until someone posts the bom for the phone parts it's hard to even guess, even then it is a guess cause no one is going to release the Dev costs.
Sent from my Nexus 10 using Tapatalk 4
maxpower7 said:
That's pure speculation on your part unless you've actually seen Google's financial data. I really don't think that marketing costs for the N5 add up to more than 100 bucks per phone. What other costs are you taking into consideration?
Click to expand...
Click to collapse
First off it's not speculation. We're working on your numbers 250 for the cost of production for a phone. Being sold at 350 that's 100 dollars. That hundred dollars doesn't cover the advertising, the web presence on the sites, shipping and handling in the sales process, supprt teams for customer service, etc etc there are many costs incurred that the average person doesn't realize. Let's not forget the R&D to make the phone even if it is based off another there was still R&D. In the end it averages out to much more than 100 dollars. Ps it's pretty well known that nexus devices have not made google money and once again it's about the services not the hardware. Example why does iOS have every google app available to expand its reach and increase profitability. If it really wanted android hardware to be the main focus google apps would be android only
TiltedAz said:
I agree, it's just an opinion.
However, Google's Motorola phone effort is more likely trying to kill the competition (Apple, Samsung, etc) by lowering prices while maintaining state of the art performance. Samsung sees the writing on the wall and is trying to establish an OS, app and tune market, etc.
Click to expand...
Click to collapse
Totally on the right track :good:
Are you really using an opinion based article as concrete proof of a company's business plan?
samagon said:
If the components cost x and the phone sells for y, there is a huge missing piece, a few actually. Development costs, qa, regulations, etc.
In the case of android, and especially the nexus line software development is nill. the Dev was going to happen regardless the nexus. Drivers, and things like that of course aren't free, so there is that software and hardware integration.
Anyway, until someone posts the bom for the phone parts it's hard to even guess, even then it is a guess cause no one is going to release the Dev costs.
Sent from my Nexus 10 using Tapatalk 4
Click to expand...
Click to collapse
Although actual figures will not be released educated guesses will obviously bring to realization that 50-100 in profit per phone is not viable
One I'm not using it as proof per se but it is a logical conclusion. I mean have none of you taken business courses in school and or own a business? I did and still own a business. If mine or any other business ran on the supposed razor thin margins that these phones bring to google they would be closed. It's obvious that the focus is on the means that the phones provide google not the phone it' self
Its basically the same principle as giving android away for free Google makes its money off of the services that are within android and its ads.
Sent from my Nexus 5
AndreaCristiano said:
Google does subsidize the Nexus line. There was an argument a few weeks back about if google subsidizes it's nexus here it is
"We already recognize that the company is likely subsidizing their own pricing on the Nexus 5 at $349 while the carriers are selling it off contract for $100 more. "
http://9to5google.com/2013/11/15/ed...-is-to-out-nokia-nokia-and-its-going-to-work/
Click to expand...
Click to collapse
This article means nothing. The phone isn't sold at a loss or even to break even. Now that's my opinion which holds as much stock as this guys opinion
>^.^< Sent from meow nexus5
Your opinion is illogical and doesn't make sense. Just because you believe something to be true doesn't make it so. Also just because Google sells the phone at a loss does not make the phone any less stellar nor does i t make Google inferior. Quite the contrary it makes them quite intelligent because the risk reward is heavily in their favor. Loss of a few million to make a few billion is always smart
Sent from my Nexus 5
AndreaCristiano said:
One I'm not using it as proof per se but it is a logical conclusion. I mean have none of you taken business courses in school and or own a business? I did and still own a business. If mine or any other business ran on the supposed razor thin margins that these phones bring to google they would be closed. It's obvious that the focus is on the means that the phones provide google not the phone it' self
Click to expand...
Click to collapse
Have you taken any introductory writing courses in school? If you did you would know you can't cite opinion based articles as fact.
When did I ever say it was fact? No where did I state it was fact. I stated and a few have concurred that it is an educated guess by looking at the numbers. So please unless you have something to contribute don't put words into my mouth
Sent from my Nexus 5
AndreaCristiano said:
First off it's not speculation. We're working on your numbers 250 for the cost of production for a phone. Being sold at 350 that's 100 dollars. That hundred dollars doesn't cover the advertising, the web presence on the sites, shipping and handling in the sales process, supprt teams for customer service, etc etc there are many costs incurred that the average person doesn't realize. Let's not forget the R&D to make the phone even if it is based off another there was still R&D. In the end it averages out to much more than 100 dollars. Ps it's pretty well known that nexus devices have not made google money and once again it's about the services not the hardware. Example why does iOS have every google app available to expand its reach and increase profitability. If it really wanted android hardware to be the main focus google apps would be android only
Click to expand...
Click to collapse
I'm well aware of Google's intent with the Nexus program and the fact that they don't make any money off it. My point is that you couldn't possibly know Google's costs associated with building and selling the phone, so everything you're saying is speculation.
I don't have any hard data either, so I could very well be proven wrong. I'm just saying that the article in the OP doesn't prove anything.
No proof positive no. It does lend credence to those whom are like minded and realize that the nexus program and now Motorola are about two things the proliferation of Google services and lowering costs of the competitions phones. All the while operation at a loss for these programs to further the growth in its real mainstay and money making programs search ads etc. I started this thread because some people do not want to see or admit the obvious and for some reason think that it is heresy to even suggest these things
Sent from my Nexus 5