Nexus one Parts cost 175$....

[outlaw.99]

This isnt the only business that does this....In paintball, when the new Egos and DM`s come out they can go for around 1200-1500....The parts cost around 250....What your paying for is the name, research and marketing the first year....Notice prices always drop after they break even....

[Unaufhaltsam]

Looks like Google has its own $350 ETF fee on top of T-Mobiles $200 if you cancel within 120 days. Anyone buying this better make sure they're gonna keep it a while.

[imtjnotu]

wow google this is not the way u start off ur own phone damnit...

[sorge]

Hmmm all seems pretty standard......

Revenue - Marginal Cost(175 apparently)= Contribution margin

Contribution Margin is then used to pay off fixed cost, such RnD, adversiting, replacing bad units.....and so on.

After that they get.....profit....the Iphone cost about the same to make and it costs more.

Thats not even a high mark up.....only 250ish%. Go buy a 6 dollar aux cable in a store and there you have a real mark up.

[we350z]

interesting - thats a deep profit

[imtjnotu]

Originally Posted by sorge

Hmmm all seems pretty standard......

Revenue - Marginal Cost(175 apparently)= Contribution margin

Contribution Margin is then used to pay off fixed cost, such RnD, adversiting, replacing bad units.....and so on.

After that they get.....profit....the Iphone cost about the same to make and it costs more.

Thats not even a high mark up.....only 250ish%. Go buy a 6 dollar aux cable in a store and there you have a real mark up.

but there hasnt been much adverstising....u only see it on websites much of which google owns somewhat or atleast the domains.....its not like the iphone or droid that get so many tv ads

[MrObvious]

Oh the Google ETF is only 120 days? That's not too bad.

[tokuzumi]

Originally Posted by imtjnotu

true on the base econimics but i figured the cheaper the price the more it will sell and a bigger chunk of the market share u will take away from apple...hmm

For a first product, I wouldn't want to sell millions of these things. If the phone has hardware/software issues galore, it's best to fix this with only a small number of units, vs having millions of these phones out there, and none of them work. That would be a PR disaster for Google. By the time Verizon gets this phone (and hopefully Sprint.....a man can dream), the hardware/software bugs will be ironed out, and it will be ready for a big marketing campaign, and possibly some nice online deals.