Comments on: Nexus One Parts Cost $174.15 http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/ Android Phone News, Rumors, Reviews, Apps, Forums & More! Mon, 04 Apr 2011 02:51:21 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: HOSS789 http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-76397 HOSS789 Fri, 15 Jan 2010 17:16:35 +0000 http://phandroid.com/?p=10751#comment-76397 I forgot about the big one: Factory Operation. Some part of the price has to go just to keep the lights on in the Factory. Without power and maintenance the phones do not get built. I forgot about the big one: Factory Operation. Some part of the price has to go just to keep the lights on in the Factory. Without power and maintenance the phones do not get built.

]]> By: HOSS789 http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-76396 HOSS789 Fri, 15 Jan 2010 17:13:49 +0000 http://phandroid.com/?p=10751#comment-76396 Costs also included in the sale price 1. Parts 2. assembly labor 3. Miscellaneous payroll (the guy that clean the factory needs to get paid too) 4. packaging 5. warehouse storage 6. shipping 7. marketing 8. Research and Development 9. Software (while Android is free some of the other stuff isn't) 10. Customer support services 11. And finally profit. Most companies only make pennies on the dollor for a devise like this. . I am not trying to say Google and HTC are not making money. This is an expensive device. Just realize that more then parts and cheap Chinese labor goes into the cost calculation. Costs also included in the sale price
1. Parts
2. assembly labor
3. Miscellaneous payroll (the guy that clean the factory needs to get paid too)
4. packaging
5. warehouse storage
6. shipping
7. marketing
8. Research and Development
9. Software (while Android is free some of the other stuff isn’t)
10. Customer support services
11. And finally profit. Most companies only make pennies on the dollor for a devise like this.
.
I am not trying to say Google and HTC are not making money. This is an expensive device. Just realize that more then parts and cheap Chinese labor goes into the cost calculation.

]]> By: Jiboy http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75365 Jiboy Tue, 12 Jan 2010 06:00:07 +0000 http://phandroid.com/?p=10751#comment-75365 I think its still working out cheap considering the assembly cost is far less in china than in any part of the world. All R & D must be done in the US where the pay is steeply high and this should be compensated for during assembly. Else the price of the device will be more than a $1000 in case of iPhones and other smart devices. there is no other way to bring down the cost as already the components and raw materials are at its lowest possible pricing. I think its still working out cheap considering the assembly cost is far less in china than in any part of the world. All R & D must be done in the US where the pay is steeply high and this should be compensated for during assembly. Else the price of the device will be more than a $1000 in case of iPhones and other smart devices.
there is no other way to bring down the cost as already the components and raw materials are at its lowest possible pricing.

]]> By: JD http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75128 JD Mon, 11 Jan 2010 21:27:41 +0000 http://phandroid.com/?p=10751#comment-75128 I for one don't think the Nexus is over priced...comparatively speaking. However, some of these retorts, like "if you don't want to pay then you build it yourself!!11!!!" or "Of course there's a markup, that's the business! ", are missing the point. Being gauged, though very capitalist in nature, and therefore expected, does not make it right. So it's okay to be raked over the coals for a phone at laptop prices because every other company does the same thing? Okay then...carry on goose steppers! I for one don’t think the Nexus is over priced…comparatively speaking. However, some of these retorts, like “if you don’t want to pay then you build it yourself!!11!!!” or “Of course there’s a markup, that’s the business! “, are missing the point. Being gauged, though very capitalist in nature, and therefore expected, does not make it right.

So it’s okay to be raked over the coals for a phone at laptop prices because every other company does the same thing? Okay then…carry on goose steppers!

]]> By: Rock http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75106 Rock Mon, 11 Jan 2010 18:43:14 +0000 http://phandroid.com/?p=10751#comment-75106 Yeah compared to other unlocked phones this is a reasonable price I guess but like I said earlier it is not affordable. I'm. On T-Mobile and unfortunately I'm on a family plan so only option for me is to put out 530 dollars. And like the others said, then comes the contract... Yeah compared to other unlocked phones this is a reasonable price I guess but like I said earlier it is not affordable. I’m. On T-Mobile and unfortunately I’m on a family plan so only option for me is to put out 530 dollars. And like the others said, then comes the contract…

]]> By: Mark http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75105 Mark Mon, 11 Jan 2010 18:26:18 +0000 http://phandroid.com/?p=10751#comment-75105 @Yeath: Exactly! Those costs are high, and the equipment is expensive as well unless you contract everything out. If you think you can do things for less, then look into the cost of pick'n'place machines, annual tech support and maintenance contracts for them, a reflow oven, and a building to house it all. Yeath left out the fact that it will take months or years from the time you hire your engineers and managers to the time you have a prototype, and even longer before you can begin manufacturing it. You will need a loan to pay them, and of course you'll have to pay a lot of interest on that loan. All you whiners are only proving your lack of intelligence. @Yeath:
Exactly! Those costs are high, and the equipment is expensive as well unless you contract everything out. If you think you can do things for less, then look into the cost of pick’n'place machines, annual tech support and maintenance contracts for them, a reflow oven, and a building to house it all.

Yeath left out the fact that it will take months or years from the time you hire your engineers and managers to the time you have a prototype, and even longer before you can begin manufacturing it. You will need a loan to pay them, and of course you’ll have to pay a lot of interest on that loan.

All you whiners are only proving your lack of intelligence.

]]> By: Rick http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75086 Rick Mon, 11 Jan 2010 16:17:44 +0000 http://phandroid.com/?p=10751#comment-75086 The parts certainly are cheaper than that list, however for most electronic devices it cost more to assemble, package and ship than the parts themselves. You folks are completely ignoring the initial R&D cost, the after sell support cost (including warranty), marketing cost... I estimate the actual price to market is probably $350-$400, which is why most electronics drop in price by 15-25% after the first 6 months. The parts certainly are cheaper than that list, however for most electronic devices it cost more to assemble, package and ship than the parts themselves.

You folks are completely ignoring the initial R&D cost, the after sell support cost (including warranty), marketing cost…

I estimate the actual price to market is probably $350-$400, which is why most electronics drop in price by 15-25% after the first 6 months.

]]> By: Derek http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75080 Derek Mon, 11 Jan 2010 15:37:42 +0000 http://phandroid.com/?p=10751#comment-75080 If anyone has a problem with the markup, then you should find your own suppliers and buy each part separately. Then you can put it together. Good luck with that. The manufacturers have something you will never have......ECONOMIES OF SCALE!!! If anyone has a problem with the markup, then you should find your own suppliers and buy each part separately. Then you can put it together. Good luck with that.

The manufacturers have something you will never have……ECONOMIES OF SCALE!!!

]]> By: Yeath http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75079 Yeath Mon, 11 Jan 2010 15:36:58 +0000 http://phandroid.com/?p=10751#comment-75079 If you think $530 is a scandal or that they could have charged less, then why don't you simply start your own company, hire the engineers to design/test/assemble the phone and release your own phone for far less? I'm sure you will make a killing selling the same exact phone for less money. If you think $530 is a scandal or that they could have charged less, then why don’t you simply start your own company, hire the engineers to design/test/assemble the phone and release your own phone for far less? I’m sure you will make a killing selling the same exact phone for less money.

]]> By: Zach http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75077 Zach Mon, 11 Jan 2010 15:29:19 +0000 http://phandroid.com/?p=10751#comment-75077 How much are the parts cost on the muerto-rola droid? How much are the parts cost on the muerto-rola droid?

]]> By: Sasquatch http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75071 Sasquatch Mon, 11 Jan 2010 15:02:28 +0000 http://phandroid.com/?p=10751#comment-75071 Heh. I like you you list the cost of the parts, as if that's how much it costs Google to deliver the phone. Then you concede that, "Well, that doesn't include the cost of assembly, transportation, etc." ...uh, what about the cost paid to HTC, research and development, design, software development, marketing, administration, returns, etc? Ever wonder how many Google employees are behind this project? They all need to be paid (including benefits). At $174.15, I'm surprised Google is able to deliver it as inexpensively as they are. Heh. I like you you list the cost of the parts, as if that’s how much it costs Google to deliver the phone. Then you concede that, “Well, that doesn’t include the cost of assembly, transportation, etc.” …uh, what about the cost paid to HTC, research and development, design, software development, marketing, administration, returns, etc? Ever wonder how many Google employees are behind this project? They all need to be paid (including benefits). At $174.15, I’m surprised Google is able to deliver it as inexpensively as they are.

]]> By: Thomas http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75069 Thomas Mon, 11 Jan 2010 14:44:52 +0000 http://phandroid.com/?p=10751#comment-75069 Did you expect anything else. After adding development, marketing, manufacturing, management and many, many other costs you are not that far away from $530. Did you expect anything else. After adding development, marketing, manufacturing, management and many, many other costs you are not that far away from $530.

]]> By: mike http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75067 mike Mon, 11 Jan 2010 14:36:28 +0000 http://phandroid.com/?p=10751#comment-75067 wah wah wah- my coffe mug is made of sand and clay i could buy in my back yard yet they have the nerve to charge me for it. wah wah wah- the electons that MS uses to make their software run on my laptop costs them NOTHING yet they charge me to buy office. wah wah wah- (my favoite repeated like 3 million times a day all over the net)- verizon charges soo much more than the other carriers- what a ripoff?1 wah wah wah- I'm a congressman and the country is going bankupt but i think it's important to investigate why per text message costs have risen in the past few years. GROW UP PEOPLE. The cost of goods sold has very little to do with what the ingredients cost. It's more about what the market will bear. Google decided for whatever reason that $530 was the price they wanted to charge. Prices directly related to the cost of the parts is just not what happens in the world. If you think it's a "rip-off" maybe they did it on purpose to keep such haters/whiners/complainers away and rather just keep the inital lunch to the fanboys to help them smooth out the bumps related to releasing a new product. They are already getting a certain amount of bad mojo from "all the issues" at launch. Could also be that they dont want to market it so the masses see it ealted at all to anything like a 'feature phone'. If it costs the same price as a POS then to a degree it will get viewed by some as a POS. And I doubt anyone can just call qualcomm up and buy ONCE CPU- so of course the pricing is somewhat related to buying in bulk. I'm sure those are not the prices that someone pays when buying a million but it's not like the cost is one tenth that. wah wah wah- my coffe mug is made of sand and clay i could buy in my back yard yet they have the nerve to charge me for it.

wah wah wah- the electons that MS uses to make their software run on my laptop costs them NOTHING yet they charge me to buy office.

wah wah wah- (my favoite repeated like 3 million times a day all over the net)- verizon charges soo much more than the other carriers- what a ripoff?1

wah wah wah- I’m a congressman and the country is going bankupt but i think it’s important to investigate why per text message costs have risen in the past few years.

GROW UP PEOPLE. The cost of goods sold has very little to do with what the ingredients cost. It’s more about what the market will bear. Google decided for whatever reason that $530 was the price they wanted to charge. Prices directly related to the cost of the parts is just not what happens in the world.

If you think it’s a “rip-off” maybe they did it on purpose to keep such haters/whiners/complainers away and rather just keep the inital lunch to the fanboys to help them smooth out the bumps related to releasing a new product. They are already getting a certain amount of bad mojo from “all the issues” at launch.

Could also be that they dont want to market it so the masses see it ealted at all to anything like a ‘feature phone’. If it costs the same price as a POS then to a degree it will get viewed by some as a POS.

And I doubt anyone can just call qualcomm up and buy ONCE CPU- so of course the pricing is somewhat related to buying in bulk. I’m sure those are not the prices that someone pays when buying a million but it’s not like the cost is one tenth that.

]]> By: celulares http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75058 celulares Mon, 11 Jan 2010 13:13:37 +0000 http://phandroid.com/?p=10751#comment-75058 So Google could have dropped the price a little...As Rock said, isn't affordable at $530 So Google could have dropped the price a little…As Rock said, isn’t affordable at $530

]]> By: Spitfire http://phandroid.com/2010/01/10/nexus-one-parts-cost-174-15/#comment-75046 Spitfire Mon, 11 Jan 2010 10:27:10 +0000 http://phandroid.com/?p=10751#comment-75046 Will Google offer self-assembly kits?! Will Google offer self-assembly kits?!

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