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HTC Nexus One


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Nexus One's hardware cost $174.15


Jan 9, 2010, 7:09 PM
So Google makes $354.85 profic on each Nexus One. Retail prices for cell phones are over prices. Especially compared to the price of netbooks.

http://www.engadget.com/2010/01/09/nexus-one-hardwar ... »

Jan 10, 2010, 12:49 PM
No, Google is not "making" $353.85 one each unit. The $174.15 figure is just the estimated cost of all the components to build the phone. There are no figures given in that article for labor, packaging, shipping from the manufacturer to the distribution point, shipping to the final purchaser, etc. You also have to consider that Goole and HTC have how many months, man-hours of time in R & D of this product. A manufacturer may have 22% - 28% margins. There are many factors not addressed in that article.

Jan 10, 2010, 7:49 PM
Oh, I still don't get how smartphones cost more than netbooks.

Jan 12, 2010, 8:58 AM
Significantly smaller devices, meaning all the pieces have to be smaller to fit inside. Netbooks can also use a lot of "universal" pieces, meaning that you'll have 50+ netbooks with the same basic parts whereas with a phone, a lot of piece could be custom made for just that line (or just that device). Then you look at the RD that went into the software. Even with "stock" android devices, they still need to be tweaked a bit to take advantage of each phones capabilities, where a netbook takes a the same OS.

The chips used for connecting the device to the networks have royalty costs associated with them as well.

The screen is most likely some proprietary stuff.. I can't talk for the Nexus One, but the Droid is made using Gorilla Glass...

Jan 12, 2010, 5:52 PM
Interesting, thanks for explaining that "universal" parts stuff, it makes sense.

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