Google’s new Nexus One smartphone costs just $US200 to make but the company is selling the unlocked version of the device for over $US500, Reuters has reported.
The report cites a research document from iSuppli, which states the cost of the components comes to about $US187, following a document from Goldman Sachs analyst James Mitchell which last week stated the component costs were expected to be about $US322.
However, some tech analysts have suggested Google may not be making much money from the phone due to the company’s expenditures on marketing and licensing.
Canaccord Adams analyst Peter Misek told Reuters, “You can’t base margins off of costs alone”.
ABOUT THE AUTHOR
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
COMMENTS
SmartCompany is committed to hosting lively discussions. Help us keep the conversation useful, interesting and welcoming. We aim to publish comments quickly in the interest of promoting robust conversation, but we’re a small team and we deploy filters to protect against legal risk. Occasionally your comment may be held up while it is being reviewed, but we’re working as fast as we can to keep the conversation rolling.
The SmartCompany comment section is members-only content. Please subscribe to leave a comment.
The SmartCompany comment section is members-only content. Please login to leave a comment.