How will the Google Nexus 5 make money if it's priced £250?

How will Google or LG make money from the Nexus 5 if it's half the price of the iPhone 5S?

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TJ Skywasher  Oct. 29, 2013 at 20:11

It doesn't make any money, the same as the Nexus 4. I'm not sure what the arrangement is between Google and LG for manufacturing them but Google sells the Nexus line at cost and doesn't make any money on them. The idea being to make the money on selling content, which is questionable as margins are very slim, only a few percent. Similarly Amazon sells it's hardware on the cheap but at a loss, I think on each Kindle Fire it sells it makes a loss of $15. So whilst prices seem attractive to the consumer and might look half the cost of an iPhone 5S there is a reason behind it.


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