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Old Nov 10, 2012, 06:45 AM   #76
mcman77
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I don't quite agree. I do understand where you're coming from, but I don't see it quite that way.

By no account is Google making money off these, and by many accounts they're losing a far bit on each one. So... I'm not sure they're trying to sell as many as possible. I think they were aware of the issues in the review units and intentionally wanted what they're getting: generally favorable reviews, but with a few "issues" to make sure there's not an insane push to buy them right off the bat.

The battery life is fixable. The throttling is fixable. But those things, and the "ZOMG NO LTE!!!!1!!1BBQ" issue, will temper consumer demand initially. Developers will buy them anyway. Tech geeks will buy them. But there won't be a crazy rush.

Over time, reviews will be even more favorable, but the lack of LTE and the 16GB cap will keep sales down - which is fine, because Google's losing money on these.

Then, you'll see 32GB and 64GB provider versions (some/many with LTE) which aren't for sale on Play and which require a contract (because Google will charge the providers more for them), and people will buy them.

Google will stop losing money, people will like the phones, which will see a few software revs due to feedback from those who bought them initially, and everybody will be happy.
well said but I have to disagree.

You're telling me that this nexus 4 is costing more than 279 16gb ($444) to produce?

If anything Google is making a profit on the hardware (small mark-up considering other company profit margins) and they are making money through their services.

What ever happend to the Google makes $15 per gmail account? (estimated revenue potential customers will generate just by using gmail)

Google wouldn't pay you to buy their phone...

If you look around you can find out actual price costs of phones. I know its an estimation cause when producing such high volume numbers the price will change. There is no way that this nexus 4 costs that much per unit let alone Google making a Loss on each device!
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Old Nov 10, 2012, 08:24 AM   #77
THE JUICEMAN
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Originally Posted by mcman77 View Post
well said but I have to disagree.

You're telling me that this nexus 4 is costing more than 279 16gb ($444) to produce?

If anything Google is making a profit on the hardware (small mark-up considering other company profit margins) and they are making money through their services.

What ever happend to the Google makes $15 per gmail account? (estimated revenue potential customers will generate just by using gmail)

Google wouldn't pay you to buy their phone...

If you look around you can find out actual price costs of phones. I know its an estimation cause when producing such high volume numbers the price will change. There is no way that this nexus 4 costs that much per unit let alone Google making a Loss on each device!
LG is selling the phone for twice as much as Google. This had made people speculate that google is taking a hit or subsidizing the phones. I personally think they are subsidizing because they know if they get these is the hands of a lot of people they will make up the money with ad revenue.
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Old Nov 10, 2012, 08:54 AM   #78
cynics
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Originally Posted by THE JUICEMAN View Post
LG is selling the phone for twice as much as Google. This had made people speculate that google is taking a hit or subsidizing the phones. I personally think they are subsidizing because they know if they get these is the hands of a lot of people they will make up the money with ad revenue.
That is probably true they would most certainly prefer if you used their services.

But don't forget apple does ad tracking anyway maybe to not the extent but its still there.



You can "limit" it though!
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Old Nov 10, 2012, 09:09 AM   #79
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Originally Posted by mcman77 View Post
You're telling me that this nexus 4 is costing more than 279 16gb ($444) to produce?
As mentioned, it's $299 here in the States, and that's including costs of manufacturing, design, development, warranty coverage, and so on.
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Old Nov 10, 2012, 09:50 AM   #80
THE JUICEMAN
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That is probably true they would most certainly prefer if you used their services.

But don't forget apple does ad tracking anyway maybe to not the extent but its still there.

Image

You can "limit" it though!
Lol I know apple does too! Not denying that!
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Old Nov 10, 2012, 10:30 AM   #81
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Lol I know apple does too! Not denying that!
Of course.

But if you are choosing the lesser of two evils why not at not getting ripped by a 50% profit margin? I could never understand buying an unsubsidized iPhones.
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Old Nov 10, 2012, 10:33 AM   #82
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Originally Posted by mcman77 View Post
You're telling me that this nexus 4 is costing more than 279 16gb ($444) to produce?
Don't forget to subtract VAT from that price as the Google Play store prices are VAT inclusive. Google or LG or both are almost certainly loosing on every phone. I'm a bit annoyed that they don't throw in free shipping like Apple.
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