Google said to be taking a £237 hit on every Nexus 4 it sells
Keeping the Nexus 4’s price tag as low as it is will cost Google a fortune, according to reports
Google’s Nexus 4, the debut Android 4.2 handset designed by LG, will begin shipping in the UK on November 13, with prices starting from as little as £239 for the 8GB version.
That’s an exceptionally low price-point given the handset’s specs, which read very much like a hero device from either Samsung or HTC. You have a 4.7-inch True HD IPS display, a 1.5GHz Qualcomm S4 Snapdragon Pro CPU, an 8-megapixel camera, and, of course, the latest build of Google’s Android software, 4.2.
We spoke with IDC analysts Francisco Jeronimo yesterday about the Nexus 4’s pricing, with specific emphasis on how Google could produce a handset for so cheap and what the likely affect of its introduction would be on the Android space at large.
Today, a new report from The Next Web is claiming that Google is subsidising the Nexus 4 by as much as £237 ($380) in order to soak up market share and generate even more traction for its already dominant mobile operating system.
LG built the Nexus 4, taking over OEM duties from Samsung, with the latter focussing it's attention on creating Google's new 10-inch tablet, the Nexus 10.
And it is here where things start to get interesting. Apparently, LG is offered the handset to Spanish retailers at a recommended retail price of €599 – that’s £478.79.
That means Google is offering the Nexus 7 for around £239.79 cheaper via its Play store.
‘The sentiment is echoed in Italy, where angry would-be customers are taking to the LG Mobile Facebook page to protest against the huge disparity in pricing,’ reports The Next Web.
It added: ‘the same problem is apparent in Austria too, with the 16GB model being the only one available, at €549).’
Carphone Warehouse in the UK currently has the Nexus 4 available on a variety of contracts for free starting from £31 a month. There is no mention of a SIM-free cost, however.
We’ve reached out to LG for comment on this issue, and will update the story once they’ve been in touch.