senseamp
Lifer
- Feb 5, 2006
- 35,787
- 6,195
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I find it amusing that so many people are screaming "$649 for a 6-inch smartphone? That's outrageously overpriced!"
Hi, folks, go take a look at the prices of the Galaxy Note 4, Lumia 1520 and iPhone 6 Plus. The $649 price is not only in the ballpark, it's actually one of the better deals. Google is reminding you that hardware companies have to make money, and that this is what phones really cost. It sucks in that the Nexus is losing one of its biggest selling points, but it long felt like Google was leading fans down the garden path and fooling them into thinking that $350 was a realistic price for a high-end phone.
Why is it not realistic? Just upgrade the SOC on the Nexus 5, and done.
BOM's on these are in $200 range, so even at $350, they are making good money on them, not that Nexus is supposed to be profit driver at Google.
This is a marketing error on Google's part. They aimed the product at too high of a price point, too big of a display size for their Nexus customer base.
Nexus is primarily aimed at pre-paid unsubsidized market who buys their phones on Play store. The one going down the garden path is Google, thinking they can sell Nexus phones at $600 price range. They got a niche overpriced product. They'll either come back to their senses and release a $350 5" phone in the next few months, or Nexus as a concept is finished.