Weekend tech reading: Nexus One costs $174.15 to build

By on January 9, 2010, 2:25 PM
Google Nexus One carries $174.15 materials cost, iSuppli teardown reveals With its new Nexus One, Google Inc. has taken many of the latest smart-phone innovations and combined them in a single product that manages to be both cutting edge and cost competitive, according to a teardown conducted by iSuppli Corp. iSuppli

Google Voice is coming to the iPhone "one way or the other" Google's vice president of engineering Vic Gundotra said the Google Voice application, which is still in limbo after Apple declined to give it the greenlight for the app store, will come to the iPhone "one way or the other." VentureBeat

A deluge of devices for reading and surfing You've heard of Amazon.comís Kindle. And you probably know that Apple is likely to introduce a tablet computer this year. Soon you may also be hearing about the Alex, the Que proReader and the IdeaPad U1 Hybrid. The New York Times

HP working on 'Half-Pint' android tablet Hewlett Packard is working on numerous tablet devices that will come in a variety of sizes, shapes and operating systems, including Windows 7, Google's Android, and possibly the open-source operating system Linux. The New York Times

Netflix CEO Hastings sees 20 more years of mailing DVDs; "Excellent" chance of Nintendo Wii deal Someday, Netflix will offer more than 100,000 movies on its streaming service. Not yet, of course. They currently offer 17,000-plus pieces of streaming content and counting. Meanwhile, the company continues to ship an increasing number of DVDs to their customer base in the mail. Tech Trader Daily

User Comments: 9

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Kibaruk Kibaruk, TechSpot Paladin, said:

Me wants a Nexus! (I know I know it's not bad english I just meant it that way)

saintbodhisatva said:

How'd it get to $529! hahaha.

Guest said:

That is how much it costs in parts so 529-174.15=354.85 but in retail they like to make about 50% profit so that would mean 529x0.5=264.5(How much money they would like to make on each phone). What this tells us is that it costs 264.5-174.15(parts)=$90.35(labor) to engineer each phone.

When you read those isuppli reports that is just how much the hardware costs. It doesn't inlcude the R&D or the overhead for putting it all together and the distribution network.

Kibaruk Kibaruk, TechSpot Paladin, said:

Yup, do you know how much it takes to make a single bottle of Coke? 90% of it is advertisement costs.

compdata compdata, TechSpot Paladin, said:

I second the comment about not including R&D,labor, or overhead. But it does show that they have high potential to recoup a lot of this.

Vrmithrax Vrmithrax, TechSpot Paladin, said:

The other side of the cost vs price on the Nexus to consider - how much do they sell them to the actual wireless providers for? Usually, phones are sold at tiny margins to the telecoms, with the manufacturers counting on quantity to make any money. Selling them as a direct option as well is just gravy, more pure profit in the coffers.

It's also one step closer to dragging us into similar wireless service as most of the rest of the world - Pay full for the phone, go to whatever provider you want, don't get stuck in a draconian contract with a horrible service. AT&T, Verizon, and the ilk have had us by the short curlies for far too long.

TomSEA TomSEA, TechSpot Chancellor, said:

20 more years of mailing DVD's for Netflix? No way. Technology is moving too fast and DVD's are already starting to decrease over other methods of media transfer.

20 years from now DVD's will be considered in the same light as we view 8-track cassette's today.

Burty117 Burty117, TechSpot Chancellor, said:

Totally agree with Vrmithrax!

TorturedChaos, TechSpot Chancellor, said:

@Nexus thing

So if they are costing $174.15 just to make, not counting all the other cost, and with a 2 yr contract they are $179, how is google making money of any of those? Only ones they would make a nice profit on are the unlocked ones, or if someone is dumb enough to breach that contract and google can actually collect on the rest of the cash.

@ Netflix thing

Yah I don't see 20 years of mailing DVD's. Maybe push 20 years, but really doubt it, if they are including Blu-ray's. I think by 20 years down the road there will me too much digital distribution competing with Netflix for them to keep up with mailing anything.

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