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Google selling Nexus One at a loss

by Iain Thomson

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12 Jan 2010

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Google Nexus One
Hardware costs for the the Nexus One amount to $174.15, according to iSuppli

Google is selling its Nexus One smartphone at a near loss, according to a report from analyst firm iSuppli.

Hardware costs for the the Nexus One amount to $174.15 (£108.18), despite being sold for $179 (£111) at present, including a contract with T-Mobile. The estimate does not include marketing, retail and, crucially, software costs.

"With the Nexus One, Google has taken the most advanced features seen in recent smartphone designs and wrapped them up into a single sleek design," said Kevin Keller, senior analyst for competitive analysis at iSuppli.

"Items like the durable unibody construction, the blazingly fast Snapdragon baseband processor and the bright and sharp active matrix organic light emitting diode display have all been seen in previous phones, but never before combined into a single design.

"This gives the Nexus One the most advanced features of any smartphone ever dissected by iSuppli's Teardown Analysis Service, a remarkable feat given that the product's bill of materials is similar to comparable products introduced during the past year."

The most expensive single component in the handset is the 1GHz Qualcomm Snapdragon processor, which the report praised for its speed.

"The Snapdragon was first noted in a previous smartphone torn down by iSuppli, the Toshiba TGO1, which is based on Microsoft's Windows Mobile operating system," Keller said.

"However, the Android 2.1 operating system used in the Nexus One better capitalises on the Snapdragon's fast performance, making the user interface and applications run very quickly."

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