How will Google or LG make money from the Nexus 5 if it's half the price of the iPhone 5S?
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.
You don't need an account to comment. Just enter your email address. We'll keep it private.
Leave a comment and click submit. You can change your username if you like.
Please choose a username, then leave your comment and click submit.
Looks like you're already a member! Please enter your password. If you have forgotten your password, click here.
That username is invalid or already in use. Please try another username.
© 2018 Mobot. All rights reserved.