Analyst firm iSuppli has broken down the cost of the parts that are used by HTC to make the Nexus One for Google and it has come to the conclusion that each phone is costing it roughly £107 ($174).
Before its release some expected the Nexus One, which currently retails for more than £328, to be passed on to the consumer without Google making any money in order to get the technology in the pockets of as many people as possible.
This assumption appears to be proved to be incorrect by iSuppli's findings, which show that Google is making quite a bit from the sales of the Nexus One.
The figure does not take into account the costs related to marketing the Nexus One, modifying the software and putting all of the parts together, but most believe that this will be more than covered by the £220 difference between the cost of the components and the retail price.
iSuppli's Kevin Keller said that although the technology contained within the Nexus One had been implemented in other smartphones, Google's effort is the first to actually combine hardware such as the AMOLED screen technology and the 1GHz Snapdragon processor into a self-contained package.
Mr Keller also said that his firm prices the processor at £19, making it the most expensive component, whilst the £14.50 screen and the £12.60 flash storage follow closely behind.
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