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Lamiel

join:2008-04-05
Saint Johns, MI
Reviews:
·Skyweb Online

Reality Check

Google's pricing for their direct-sale Nexus phones (first the Galaxy Nexus and now the Nexus 4) should be a reality check for both the wireless industry and the wireless consumer. While the carriers are selling off contract devices for $600-$700, here's Google offering up high-end smartphones (top-of-class, in fact) at an astonishingly reasonable price point. Just more proof that price-gouging is the name of the game for the Big Four. I can only hope that as more and more people choose to go the MVNO route, the powers that be will see the writing on the wall and return to sanity. A lot to hope for, I know... But hey, I can dream!
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Core2Quad Q9450 @ 3.4GHz, XFX 780i SLI mobo, MSI GTX 560 OC, 4GB Patriot Viper DDR2-1066, Samsung 20x optical, Samsung F3 1TB HDD, Antec TP3 650 watt PSU, CoolerMaster Centurion 5 case, Win7 Home Premium 64 bit...



FailOverflow

join:2011-02-23
united state

Pricing it at cost, means you're much more likely to use Gmail, Youtube, buy "Drive" space. etc. It's actually brilliant marketing.
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All hail my invisible zombie in the sky who watches everything you do and sends you to fictional places when you die.



skeechan
Ai Otsukaholic
Premium
join:2012-01-26
AA169|170
kudos:2
reply to Lamiel

It isn't the carriers charging $600-$700...wouldn't that be the manufacturers, with just carrier mark up for retail?

It could be the Google itself is ultimately subsidizing the phone.


Lamiel

join:2008-04-05
Saint Johns, MI
Reviews:
·Skyweb Online
reply to Lamiel

At cost? I doubt it. It doesn't take $300 to put together a smartphone, even with top specs. And I doubt Google is banking on making their money back on their various services - these are services that people would most likely be using regardless of device choice, or who they bought the device from. Google's services are ubiquitous across platforms.

I hardly think that the carriers' retail mark-ups are within the bounds of reason. They charge ridiculous prices because that drives people to subsidized devices on contracts. Remember, contracts are what they bank on. If you were to see what the carriers pay the manufacturers for these phones, I imagine you'd probably be quite surprised.
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Core2Quad Q9450 @ 3.4GHz, XFX 780i SLI mobo, MSI GTX 560 OC, 4GB Patriot Viper DDR2-1066, Samsung 20x optical, Samsung F3 1TB HDD, Antec TP3 650 watt PSU, CoolerMaster Centurion 5 case, Win7 Home Premium 64 bit...