Google's Nexus One smartphone costs $530 to buy online. The company could be making a handsome profit. iSuppli, the semiconductor industry analyst firm, reckons the Nexus One is a $174 (£107/€120) collection of bits, chips and aluminium. The handset has a total Bill of Materials (BoM) cost of $174.15, according to the iSuppli …
The parts are bought in bulk so the components may be a lot cheaper still. A nice little earner. But this is true for most companies.
However since Google are buying the phones outright through HTC it's HTC who are paying for the parts and taking a slice of the cake so to speak.
OK, so that's the component cost - now add assembly, testing, shipping, support, wastage
I used to work in the gift business and standard mark up was 6x the cost price of the item - that's how you make money.
To be honest I'm surprised it costs so much for the components (although bulk pricing will help a bundle)
capacitive touch-screen assembly
"While the module and the Android operating system support multitouch input, the capability is deactivated on the Nexus One."
Interesting.... Wonder if its crippled so that in can be in the next version?
Room for some hacks here then?
Could be licensing/patent laws.
The Motorola Droid (US) has no multitouch, yet the Milestone (EU) has multitouch, despite them being the exact same phone. I know my EU Hero has multitouch, not sure if the CDMA US Hero also does, and they're more or less the same hardware in a different case. I'm sure I read somewhere a while back that Apple has some pretty nasty patents on the multitouch tech in the US, but I could be making that up out of Apple dislike.
yes it does
Broadcomm is not Qualcomm
The Bluetooth chip is Broadcomm part. Bluetooth is one radio technology Qualcomm don't seem to be very successful with.
Qualcomm will also be taking a % of the wholesale price for their patents too. They're doing well out of it.
Just the one M please!
You are right though - the Bluetooth chip is a BroadcoM part..
The iNevitable comparison
The iPhone 3GS's components unsurprisingly cost less yet an unlocked iPhone (and good luck finding one!) costs about twice as much as the Nexus One.
Company in "selling device at profit" shocker
And this is a surprise how? Most consumer devices, bicycles, toaster, etc have a 40-60% mark-up.
You're also forgetting HTC's mark-up when they sell to Google.
Slow news day?
Charging what the market can bear...
If people are willing to shell out upwards of £40/month or £450 pay as you go for a Jesus H Jobs phone is it really any surprise that Google's retail price is similar? It's all the fault of the idiots who are happy to pay what really is a huge amount of money when you think of it, for a silly phone which is really not all that swish (even with all that mobile internet device stuff).
The total parts cost of a BMX 3 series is about the same as a Ferrari 430. And yet the Ferrari costs 5 times as much. Outrageous.
why iphone is more than driod
cos people actually want one - there are smart phones then there is the iPhone
So by your logic, the "i" in iPhone stands for "idiot".