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Google losing money on each LG Nexus 4 sale?

Google losing money on each LG Nexus 4 sale?

Google is losing hundreds of pounds on each LG Nexus 4 sale, reports suggest, as the handset-maker opts to sell the phone at a loss in the name of boosting Android’s market share.

Google is selling the entry-level 8GB edition of the phone through its Play webstore for £239 – a price point that tech-watchers pegged instantly pegged as insanely low for such a lavishly specc’d handset when it was launched last month.

lg nexus 4 official

According to The Next Web, this keener-than-keen price point is only possible because Google is subsidising the cost of the Nexus 4 to the tune of £237 for the cheapest model.

Adding fuel to that rumour is the site’s discovery that LG, which manufactured the Nexus 4 on Google’s behalf, is charging Spanish vendors for the best part of £480.

Google's willingness to upset manufacturing partners and retailers by subsidising the price of the Nexus 4 suggests the company could pursue a much more aggressive strategy with its own-branded Nexus phones and tablets in future.

The news follows Carphone Warehouse’s release of contract pricing for the Nexus 4 on O2 and Vodafone. The retailer’s cheapest contract is £31 per month and includes a free phone, plus 600 anytime, any-network minutes and 500MB of mobile data per month.

Source:

The Next Web

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