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?