Nexus one Parts cost 175$....

imtjnotu · #1 (**permalink**) 01-09-2010, 03:34 PM

well u read right the phones internals and hardware parts only cost 175 dollars....haha google really wants that profit margin to be as big as possible...just sign ur wallet over to them

http://www.engadget.com/2010/01/09/n...ill-priceless/

**Noir** · #2 (**permalink**) 01-09-2010, 05:18 PM

so the phone costs only that much ideally but because of google name on it...its what 4-500 dollars oem?

newone757 · #3 (**permalink**) 01-09-2010, 06:03 PM

thats about normal and actually cheap for the internals on it

with contract they are only making $5 off of the phone, which is why they make you pay $80 a month

Unaufhaltsam · #4 (**permalink**) 01-11-2010, 09:25 PM

Smartphone prices have been around $450-$550 for as long as I can remember. I think its less of a market demand, r&d, advertising (until a little bit ago how often did you see a smartphone advertisement) and more of that's just how it is. I understand R&D costs but HTC made this phone using nothing they haven't used before so its not that high. That goes for most of HTCs phones. But hey that's why you got contracts and ebay.

**breakmyfootoff** · #5 (**permalink**) 01-12-2010, 01:43 AM

Even the last generation Touch Pro and Diamonds were over 500.00, and they'll continue to keep selling them at this price (or higher) as long as we keep buying them.

outlaw.99 · #6 (**permalink**) 01-12-2010, 07:10 AM

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 · #7 (**permalink**) 01-12-2010, 09:08 AM

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 · #8 (**permalink**) 01-12-2010, 05:37 PM

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

sorge · #9 (**permalink**) 01-12-2010, 06:12 PM

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.

imtjnotu · #10 (**permalink**) 01-14-2010, 12:39 PM

Quote:

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