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Nexus 4 subsidized price, the Google no brainer

These days in the mobile space when it comes to a high end smartphones offering top notch specs, one expects to have to shell out quite a bit of cash to purchase the device. But when it comes to the Nexus 4, Google is asking for 299-bucks for the 8GB model, and 349-bucks for the 16GB version. So the big question is could Google be subsidizing the Nexus 4 to keep those prices down?

According to an article over on 9to5google, typically smartphones with the type of high-end specs the Nexus 4 offers go for somewhere in the region of $500 to $700 unsubsidised. The Nexus 4 doesn’t support LTE, but the lack of an LTE chip would not bring the price down that much.

As you know, the Google Nexus was priced at $349, but the handset did come with an older generation chipset, less RAM, a 5 megapixel camera and less expensive pentile display, so how is Google selling the Nexus 4 so cheap?

Virgin sells unsubsidised handsets in the USA, with the likes of the Motorola Triumph going for $279, and is a 4-inch handset with a single core processor that is over a year old. The HTC EVO V from Virgin is nearly two years old and still commands a price tag of $299.99

LG will offer the Nexus 4 to their carrier partners in Italy and Spain, which will get quite a price hike according to Phone House Spain’s Facebook page, with the device being offered to them by LG for an RRP of 599 Euros, but doesn’t stipulate which model that will be. However it is a fairly substantial price increase of between 250 Euros and 300 Euros over purchasing it from Google Play.

T-Mobile is also offering the Nexus 4, but is offering the handset paired with a voice and data plan over two-years for an upfront cost of $199.99 along with 20 monthly payments of $15 through the carrier’s Equipment Instalment Plan.

That $199 along with a two-year commitment is in line with other high end devices such as the iPhone 5 or Samsung Galaxy S3 with other carriers. But that $199 along with $300 in monthly payments bring the Nexus 4 up to $500, which would imply that T-Mobile is not getting the device for $299, or they could be slapping on a huge margin.

This leads one to believe that Google might not be just offering the Nexus 4 at price, but possibly at cost, because the numbers simply don’t add up.

What do our readers think, is Google subsidising the Nexus 4?

Comments

3 thoughts on “Nexus 4 subsidized price, the Google no brainer”

  1. I think Google wants more ppl to buy from the play store as sort of a pilot project to see how well things work because their long term plan my not include multiple devices offered by carriers but possibly 2 or 3 devices of different sizes from each carrier that are all nexus devices. This would greatly help Android update woes that seem to be a point of argument for crApple users on what they dislike about Android. Possibility,…… maybe? – KID ANDROID. ( Team.Android.Canada)

  2. Reply
    Thomas Hughes says:

    Google want more people using the Nexus devices. Its easier for software developers to write apps for a few devices than many, so if everyone is on Nexus we will see more apps.
    Most of the Android market share is still using Gingerbread. Making this phone so much cheaper will push alot more users to Jelly bean.

    I wonder how the Smartphone market will react to this? This is a massive price undercut, so anyone who doesn’t have lots of money to burn will buy this phone. The Galaxy S3 is pretty much twice the price of the Nexus 4, and only really offers LTE and expandable storage as extra… To a gross majority this is not important.
    Hard to predict how this will affect the iPhone and Windows market yet. Google do not believe in or create the hype that Samsung and Apple do about their products, so most people are probably unaware the Nexus 4 exists at this price.

  3. Reply
    abrahavt says:

    Not sure about the US but in other countries around the world this phone has the potential to not just eat into iPhone and Windows sales but also sales of existing overpriced Android phones like the Samsung S3.

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