Weekend tech reading: Nexus One costs $174.15 to build

By Matthew ยท 9 replies
Jan 9, 2010
  1. 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

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  2. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,286   +903

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

    saintbodhisatva TS Rookie Posts: 59

    How'd it get to $529! hahaha.
  4. 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.
  5. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,286   +903

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

    compdata TechSpot Paladin Posts: 529   +7

    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.
  7. Vrmithrax

    Vrmithrax TechSpot Paladin Posts: 1,352   +293

    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.
  8. TomSEA

    TomSEA TechSpot Chancellor Posts: 2,718   +860

    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.
  9. Burty117

    Burty117 TechSpot Chancellor Posts: 3,147   +915

    Totally agree with Vrmithrax!
  10. TorturedChaos

    TorturedChaos TechSpot Chancellor Posts: 839   +29

    @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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