LG hampering Nexus 4 production - Nexus 4 General

There's a rumor on french websites about LG not very happy about the success of the N4, for various reasons:
- Not enough profit per phone and market breaker, LG set a new price standard which every high end phones can't compete, including LG Optimus G, and not so enjoyable hypothesis for future smartphones sales and profits.
- Hence its limitation for very few countries when it can easily be sold in every national Play Store with scheduled launches and good will.
It's a flagship not destined to be massively sold, just a flag.
- Carriers/Hardware suppliers/Competition (legal threats) pressure?
What do you think ?

Wooven said:
There's a rumor on french websites about LG not very happy about the success of the N4, for various reasons:
- Not enough profit per phone and market breaker, LG set a new price standard which every high end phones can't compete, including LG Optimus G, and not so enjoyable hypothesis for future smartphones sales and profits.
- Hence its limitation for very few countries when it can easily be sold in every national Play Store with scheduled launches and good will.
It's a flagship not destined to be massively sold, just a flag.
- Carriers/Hardware suppliers/Competition (legal threats) pressure?
What do you think ?
Click to expand...
Click to collapse
I think im hungry and need to eat lunch.

N4 is a chance for LG to show they can do high end and quality. How they were convinced to have this selling beside the optimus g but at half the price I doubt we'll ever know.
Besides that, obviously nobody but those looking to get one are happy about it. Given that this is only a win for consumers, wouldn't surprise me to see LG give poor stock, although it may not be up to them and already be in a big contract.
Sent from my SAMSUNG-SGH-I727 using Tapatalk 2

It doesn't matter whether LG is happy or not; this is the course that the Illuminati mapped out for mankind after world leaders made contact with extraterrestrial intelligences shortly after WWII. Through the United Nations, which is really a puppet regime of the Illuminati designed to prepare us for contact with advanced alien lifeforms and technology, they ensure that this kind of high-end tech will slowly but steadily become cheaper so that we all become so used to having it be an integral part of our lives until we accept the idea of it being integrated biologically and the aliens can use it to turn us into mindless, cybernetic slaves.
Now that is a conspiracy theory, my friend.

I LOLd.
Gesendet von meinem HTC Desire mit Tapatalk 2

MaxCarnage said:
It doesn't matter whether LG is happy or not; this is the course that the Illuminati mapped out for mankind after world leaders made contact with extraterrestrial intelligences shortly after WWII. Through the United Nations, which is really a puppet regime of the Illuminati designed to prepare us for contact with advanced alien lifeforms and technology, they ensure that this kind of high-end tech will slowly but steadily become cheaper so that we all become so used to having it be an integral part of our lives until we accept the idea of it being integrated biologically and the aliens can use it to turn us into mindless, cybernetic slaves.
Now that is a conspiracy theory, my friend.
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What?

I would have never considered a LG phone if it wasn't for this Nexus.
They are proving that they can build decent phones(hopefully). This will open them up to a lot of people like me who never took them seriously.

jmejiaa said:
I would have never considered a LG phone if it wasn't for this Nexus.
They are proving that they can build decent phones(hopefully). This will open them up to a lot of people like me who never took them seriously.
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Click to collapse
The Nexus 4 only came to be because Google guided/forced them to make it how THEY wanted it done.
If you want to see LG's industrial design/interface go look at the Optimus G and the gazillion other LG phones which didn't sell well (In the U.S. at least).
The only thing the Nexus 4 proves is that Google can turn a phone all about the specs into something that actually looks good and has decent specs.

jmejiaa said:
I would have never considered a LG phone if it wasn't for this Nexus.
They are proving that they can build decent phones(hopefully). This will open them up to a lot of people like me who never took them seriously.
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Click to collapse
This is what it really boils down to, I think. LG is a substantially smaller player in the smartphone game (at least in the States), and designing the flagship Android phone for Google will only help them to establish a better name for themselves in the U.S. market. Whatever loss or minimal profit there is to be had with the Nexus 4, the key is that people who might never have even considered an LG phone before are now clamoring for one. Who knows? If it's a great phone, I might become an LG fan.

Is it time for a mandatory IQ test before posting?
Sent from my Nexus 4 using xda premium

enviii said:
The Nexus 4 only came to be because Google guided/forced them to make it how THEY wanted it done.
If you want to see LG's industrial design/interface go look at the Optimus G and the gazillion other LG phones which didn't sell well (In the U.S. at least).
The only thing the Nexus 4 proves is that Google can turn a phone all about the specs into something that actually looks good and has decent specs.
Click to expand...
Click to collapse
Not really, the optimus G has been getting great reviews as well, but I would have never considered it.
Most likely the Nexus came to be because they came at google with the best bid and Google took them up on the bid. If samsung would have given them a better offer I'm sure they would have taken it.

jmejiaa said:
Most likely the Nexus came to be because they came at google with the best bid and Google took them up on the bid. If samsung would have given them a better offer I'm sure they would have taken it.
Click to expand...
Click to collapse
Yes that is exactly how the nexus phone happened
Sent from my Nexus 4 using xda premium

Wooven said:
There's a rumor on french websites about LG not very happy about the success of the N4, for various reasons:
- Not enough profit per phone and market breaker, LG set a new price standard which every high end phones can't compete, including LG Optimus G, and not so enjoyable hypothesis for future smartphones sales and profits.
- Hence its limitation for very few countries when it can easily be sold in every national Play Store with scheduled launches and good will.
It's a flagship not destined to be massively sold, just a flag.
- Carriers/Hardware suppliers/Competition (legal threats) pressure?
What do you think ?
Click to expand...
Click to collapse
I think you need something better than Babelfish.
I am not sure what you are saying.

MaxCarnage said:
...they ensure that this kind of high-end tech will slowly but steadily become cheaper...
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Click to collapse
Krugman refers to this as the Tchotchke Economy. It's been forced upon us by the elite, the so called "anointed ones".. it goes deep, too: prime ministers, Hollywood, the heads of academia, bankers. Only a select few. Could it be when you have all the power and all the money and all the lands and all the art, you have to do something new, you have to provide cheap cellphones to geeks just to spite LG?

crachel said:
Krugman refers to this as the Tchotchke Economy. It's been forced upon us by the elite, the so called "anointed ones".. it goes deep, too: prime ministers, Hollywood, the heads of academia, bankers. Only a select few. Could it be when you have all the power and all the money and all the lands and all the art, you have to do something new, you have to provide cheap cellphones to geeks just to spite LG?
Click to expand...
Click to collapse
It was Krugman too who insisted that an alien invasion would be the best thing to happen to the global economy:
http://www.huffingtonpost.com/2012/06/19/paul-krugman-alien-invasion_n_1609805.html
I think that we've made the final connection; the aliens are amongst us and the war of the worlds is about to begin. The catalyst: Nexus 4.

Just hypothetical questions....
If you are Samsung, how would you compete versus N4 given the very low price?
Don't you think the Android market is now less attractive for you?
Suddenly, you are now forced to come low price products...
Suddenly, you now cannot have more profits...
What's your take on this?
If N4 is being sold in the street store, with this quality and the same low price as Play Store... Who would buy SGS3? Who would buy LG OG?...
Suddenly, all other high end Android becoming unattractive... Don't you think?
Sent from my Nexus 7 using xda premium

gogol said:
Just hypothetical questions....
If you are Samsung, how would you compete versus N4 given the very low price?
Don't you think the Android market is now less attractive for you?
Suddenly, you are now forced to come low price products...
Suddenly, you now cannot have more profits...
What's your take on this?
If N4 is being sold in the street store, with this quality and the same low price as Play Store... Who would buy SGS3? Who would buy LG OG?...
Suddenly, all other high end Android becoming unattractive... Don't you think?
Sent from my Nexus 7 using xda premium
Click to expand...
Click to collapse
I think Samsung has built a fan base, similar to Apple. I can't stand whenever people talk about Android, it's all Samsung.
So I'm not worried about them not able to compete.

I also have a conspiracy that my neighbors upstairs and downstairs have sex at the same time just to annoy me.
Very relevant.

richteralan said:
I think Samsung has built a fan base, similar to Apple. I can't stand whenever people talk about Android, it's all Samsung.
So I'm not worried about them not able to compete.
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Click to collapse
They are (1) not nearly as cultish and (2) despite what you may think, they're probably more devoted to software than the hardware. I think the immense demand for the N4 speaks volumes. Price matters, and there is no other phone that comes even remotely close at this price.

enviii said:
What?
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Seriously? If you didn't know about all of this you're blind
Sent from my MB860 using xda app-developers app

Related

LG eating itself alive with Nexus 4

Google and LG most likely make NO money from selling the Nexus 4 at the $299 pricepoint. The Nexus 4 is identical to the Optimus G, which is suppose to be LG's cash cow. Same proc, same screen. Tbe build actually looks nicer on the Nexus 4. The camera is a wash since the 13MP one sucks and the 8MP is identical on both. So literally the only difference is whether you want LTE or not. Is LTE (and a subjectively much uglier design) worth $200+ price premium for the Optimus G? The Nexus 4 also has pure Android which is also a big plus, So why is LG releasing the (much better) Nexus 4 at a no-profit price and undercutting their cash cow the Optimus G? They are barely making squat right now in the mobile phone space. This makes no business sense.
I'm pretty sure LG just builds the phone and gets paid for it, Google probably will sell it close to what they paid to get it built. So LG isn't losing money, Google is just breaking even or maybe barely losing.
Sent from my Galaxy Nexus using xda premium
Improving their brand image while simultaneously getting their brand name out there?
While not entirely the same, you could argue that with the Galaxy Nexus, it was fighting with the S2 and a little bit of the S3.
Yet Samsung managed to really make their push during that time period. People have tons of horror stories when it comes to LG. If they play their cards right with these devices, they'll have a much brighter future.
Sent from my Transformer Prime TF201 using Xparent Cyan Tapatalk 2
The Xiaomi Mi2 will also be selling at a loss ($310 vs a cost of $370), and has pretty much identical specs as the Nexus 4. I think they can manage to break even overall, especially with most sales going to the 16 GB version.
florelui001p said:
I'm pretty sure LG just builds the phone and gets paid for it, Google probably will sell it close to what they paid to get it built. So LG isn't losing money, Google is just breaking even or maybe barely losing.
Sent from my Galaxy Nexus using xda premium
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Click to collapse
X2
Google pays for it, and then they sell it to us with expensive taxes via Google Play :B
I'm assuming LG developed the phone for a flat contract price to Google.
Google is likely making little to nothing on selling the price.
They are likely straight up buying marketshare for android and enticing people to buy into their ecosystem while they make money off apps, movies, tv shows, music, and ads.
datwunkid said:
I'm assuming LG developed the phone for a flat contract price to Google.
Google is likely making little to nothing on selling the price.
They are likely straight up buying marketshare for android and enticing people to buy into their ecosystem while they make money off apps, movies, tv shows, music, and ads.
Click to expand...
Click to collapse
They sure are!
I will mostly likely be dropping the iPhone ecosystem for Android because of the Nexus 4 come November 13th. Eventually I will also convince others who rely on my smartphone knowledge on what to buy to get the Nexus 4. So it has done its job even if Google isn't making a profit off of the hardware. They will eventually make profit off of me from the Google Play content I (and many others I convince) purchase.
Excellent post datwunkid :good:
I think Google is taking the hit and selling it close to cost. You also have to factor in that the retail cost of some phones have carrier markup added in as well so that they can make some extra $$$ off people buying off contract. They're probably selling it close to cost and the Nexus line isn't really a big seller to begin with so nobody's really losing a boatload of money here. LG gets to have their name attached to what is looking to be an incredible Android phone (and DEAD SEXY!!!) which will get them back into the good graces of some of the Android fans out there. Also remember Google is an ad company - selling phones for profit isn't where they're making the lion's share of their money and while I'm sure they care somewhat about how well this device does, it'll barely have any effect on their bottom line.
Let's not kid ourselves. Google is definitely making money here. I know in the retail market, mark-up is routinely 1000%. I wouldn't be surprised one bit if LG can spit these phones out in mass production at $50 a unit or cheaper. Anybody that's had any experience in buying mass quantities knows that Google is making money.
When you see service providers selling phones out of contract for $600-$800, your seeing first hand the companies rape/screw the general public like they do best. Even when you buy a phone for a subsidized price from one of the big four, do you really think that are not still making money off the sale of the unit? Don't kid yourself...
giant22000 said:
Let's not kid ourselves. Google is definitely making money here. I know in the retail market, mark-up is routinely 1000%. I wouldn't be surprised one bit if LG can spit these phones out in mass production at $50 a unit or cheaper. Anybody that's had any experience in buying mass quantities knows that Google is making money.
When you see service providers selling phones out of contract for $600-$800, your seeing first hand the companies rape/screw the general public like they do best. Even when you buy a phone for a subsidized price from one of the big four, do you really think that are not still making money off the sale of the unit? Don't kid yourself...
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You ever look at any tear downs of phones? The parts on this phone are probably worth two hundred or so dollars, plus assembly, warranty claims, marketing. There will be a thin margin, but it will be there. I don't think many carriers will pick up the phone, so it will only really appeal to people who avoid contracts, anyway.
Sent from my HTC Vision using xda app-developers app
It makes sense for LG to do it at little to no profit because releasing the phone would help their market and image in the long run if the phone is a success. Google is baking on the consumers to buy apps, books, music, and magazines from their store.
giant22000 said:
I wouldn't be surprised one bit if LG can spit these phones out in mass production at $50 a unit or cheaper.
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Click to collapse
Have you been drinking tonight by any chance? Your post has me curious :laugh:
Borteeo said:
You ever look at any tear downs of phones? The parts on this phone are probably worth two hundred or so dollars, plus assembly, warranty claims, marketing. There will be a thin margin, but it will be there. I don't think many carriers will pick up the phone, so it will only really appeal to people who avoid contracts, anyway.
Sent from my HTC Vision using xda app-developers app
Click to expand...
Click to collapse
Think of it this way. When it comes to building a pc, you can't build one as cheap as you can buy one from one of the big boys. Plain and simple, they buy parts by the 1000's. These parts are heavily discounted at a contracted, negotiated price when bought this way.
I can assure that NO company is going to put forth the effort for a small profit margin. That's just how the corporate world works. If it doesn't make good/excellent profits, it's simply not worth the time or effort.
y would you complain about something like this though. the price is a good thing :good:
No complaining here! I'm totally stoked about it's price point. Best bang for the buck bar-none in my book! Can't wait to order...
I can assure that NO company is going to put forth the effort for a small profit margin. That's just how the corporate world works. If it doesn't make good/excellent profits, it's simply not worth the time or effort.
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Still I disagree about $50, there are actual documented break down of iPhone 4S hardware cost, is around $180, though the 5 is cheaper. Give the chinese slaves a break.
Sent from my R800x
Well here is the news Google partnered with lg because of the price as they are the only one who agreed to make phone at this price level. Its also get back lg to the market, despite their products are cool but their developers are sucks, lazy people wouldnt work on old devices to bring latest os so people like me promised won't buy lg product ever again, other company like Sony and Samsung refused Google to make smartphone with this spec for this price. But who cares about the partner as long as Google controls the os. I'm getting this as soon as it goes live for sale.
Sent from my Galaxy Nexus using xda app-developers app
Maybe Samsung doesn't want to create any more nexus phone just because of this. Their Galaxy S line and Note line will be ruined.
The same thing happens with the nexus 10, which is cheaper and FAR more specwise than note 10.1
Sent from my GT-I9100 using Tapatalk 2
qreffie said:
I think Google is taking the hit and selling it close to cost.
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The iPhone 5 costs about 200$ (16gb I think). I don't think the Nexus will cost much more. So, Google will get money out of this
Google was earning money even with the 16gb a 249$
I you think it costs them that money to make a phone you are mistaken.
I have seen retail buy in prices for handsets in bulk, and those would raise your eye brows!
so manufacturing prices would be much less.

Did Nexus 4 really just sold out faster than iPhone 5?

I mean, I am not iFan or anything, but all around the world where Nexus 4 was available for purchase was sold out in a blink of an eye.
Is this successful for Google or bad? What do you guys think.
Sent from my GT-N7100 using xda premium
No they just have less units available at launch
Sent from my Nexus 4
Can't say but I doubt it. I'm pretty sure that Google just had WAAAYYYYYY less stock than the iPhone 5! Just a marketing stunt imo
3 of my friends and 2 cousins who have been up since last night sitting infront of their computer, couldn't get theirs. I'm sure there are many more like that out there right now. After Nexus 7, imo Google should have been prepared, maybe should have gone with a solo US launch first and cover the rest of the world after 2 weeks or so. Works for Samsung every single time.
EvoYas said:
3 of my friends and 2 cousins who have been up since last night sitting infront of their computer, couldn't get theirs. I'm sure there are many more like that out there right now. After Nexus 7, imo Google should have been prepared, maybe should have gone with a solo US launch first and cover the rest of the world after 2 weeks or so. Works for Samsung every single time.
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Click to collapse
Being in France I think I'd have to say why don't they cover the "rest of the world" first and leave America to last?.... :silly:
hopefully this was just to test the waters to make sure there is a demand before they make more since they are selling these at a loss. hopefully they restore stock before the holidays.
lol, nothing against any other country, just be easier on everyone to not have a bad experience this way. But I must say, this is by far the most popular Nexus Cellphone, LG and Google got this one for sure. I'm happy thou, because it will only get better from here.
DR-Dizzy said:
Can't say but I doubt it. I'm pretty sure that Google just had WAAAYYYYYY less stock than the iPhone 5! Just a marketing stunt imo
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Click to collapse
Yep, smells somewhat like a PR-stunt to me. No offense to Google, but such a big company (that makes its money througn market analytics and advertising), not prepared for this huge demand after the success of the N7 and the low-pricing-policy? Hard to think of...
This is all speculation, but they could be after the exact headline of this thread coming to major newspapers tomorrow, certainly not a bad thing in terms of PR.
I personally think, that they made a low amount of devices available at the launch hoping for a sell-out like it has only happened with Apple products. Main stash of devices will be available soon, there has to be some over-stock before the holidays, they won't loose all the possible sales at this time of the year where customers tend to spend the most money on electronic devices.
But as I said, all speculations, no offense. I could be wrong
flx-grafix said:
Yep, smells somewhat like a PR-stunt to me. No offense to Google, but such a big company (that makes its money througn market analytics and advertising), not prepared for this huge demand after the success of the N7 and the low-pricing-policy? Hard to think of...
This is all speculation, but they could be after the exact headline of this thread coming to major newspapers tomorrow, certainly not a bad thing in terms of PR.
I personally think, that they made a low amount of devices available at the launch hoping for a sell-out like it has only happened with Apple products. Main stash of devices will be available soon, there has to be some over-stock before the holidays, they won't loose all the possible sales at this time of the year where customers tend to spend the most money on electronic devices.
But as I said, all speculations, no offense. I could be wrong
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Click to collapse
Speculation but the only reasonable logic. Given how slow and how many errors there were, Google is not ready to sell iPhone numbers. I do not believe that much stock was emptied. In either case, hopefully they provide some numbers for us. If they don't, well then I think we can just assume the PR stunt.
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Lets wait and watch, I would love to read about this launch and see what everyone is thinking about this. Can't call this a satisfying launch at all but a successful launch from Google's point of view I would say.
Sent from my GT-N7100 using xda premium
Yeah it seems to be a ****ty marketing stunt, might of had a negative impact actually because they've pissed a lot of people off
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Sp does nokia claim for their latest lumia lol but they only put on sale some thousands and not some millions so depends on the stock quantity
flx-grafix said:
Yep, smells somewhat like a PR-stunt to me. No offense to Google, but such a big company (that makes its money througn market analytics and advertising), not prepared for this huge demand after the success of the N7 and the low-pricing-policy? Hard to think of...
This is all speculation, but they could be after the exact headline of this thread coming to major newspapers tomorrow, certainly not a bad thing in terms of PR.
I personally think, that they made a low amount of devices available at the launch hoping for a sell-out like it has only happened with Apple products. Main stash of devices will be available soon, there has to be some over-stock before the holidays, they won't loose all the possible sales at this time of the year where customers tend to spend the most money on electronic devices.
But as I said, all speculations, no offense. I could be wrong
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Click to collapse
i guess they did it on reason, everytime apple releases iphone they make huge buzz around the world sold out sold out huge line outside of the store.. AS GOOGLE CANT HAVE HUGE LINE OUTSIDA STORE THEY TRICKED US WITH LESS STOCK AND MAKING SOLD OUT BUZZ. SHUT UP GOOGLE U MORON U LEFT LOADS OF UNHAPPY LOYAL SLEEPLESS CUSTOMERS WHO WERE EAGERLY WAITING ON THE DEVICE.
i doubt they had 500 devices for uk market
stinky73 said:
Being in France I think I'd have to say why don't they cover the "rest of the world" first and leave America to last?.... :silly:
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Click to collapse
lol, they effectively did, started in Australia and worked westward to the US.
I find it believable, since they are not pulling off the same sold out stunt with the Nexus 10. It is probably due to the price. All they have to get out there is superior to the GS3 and for $349 unlocked with no contract and whoever that needs a new phone would be crazy not to buy it.
That said, there are not enough geeks to sustain these numbers like the iphone 5 can sustain the numbers. However, 2 million or more geeks all ordering at 9am pst is definitely plausible. But once that 2 million gets theirs then we will see how much staying power the Nexus 4 generates.
This is without a doubt a marketing technique. Watch all the tech articles tomorrow "Google sells out Nexus 4 in .03 microseconds!"
And you'll get ignorant posters with comments like "OMGWTFBBQ Apple took 2 days to sell out! I love Google tehe LMAO OMFG"
even if Google only had 3 phones to sell, and Apple had 3 million
marketing stunt
Exactly, totally a marketing stunt. They want the headlines that the Nexus 4 sold out, that its a hot commodity. That will create more interest, higher demand, and magically in a few days a whole butt-load of units will show up in the play store. It'll be interesting to see if they actually release number of units sold today.
They sold out because they only had like 10 devices available in each region, except the US, where they had like 15 units available...
Yes, I'm bitter.
I'm actually more curious the volume of sales for the first day of release, and if Google will release those numbers.
I gt one for myself!! But ya google sucked!! I feel sorry for you all!! They must have stocked arnd one lakh/0.1 million units in each country!! Thats really bad!! Apple had really done a good job

Intentional hype?

Am I the only one here thinking that it was part of google's plan to make it look like they sold a bunch of N4s in order to get the media's attention by bragging about how many they sold? Just Google: "nexus 4 sold out". You will find many websites reporting that nexus 4 are selling like hot cakes/or are sold out. I'm going to have to look at the next news paper, I bet we will see it in the headlines. This is wonderful news for Google. Great advertisement.
More over I would like to know what you guys think of this. Don't you think that such a rich company like Google would have for seen this?
Also the fact that the number of sold devices are not being reported, wouldn't that indicate that the amount of devices are actually not that much after all? (mentioning the # of sold units would discredit their bragging right? - Of course, only if it is not high)
Chances are they have a lot on stock but want to sell only a certain amount for the time being.
Now what would concern me is, if it actually is the truth that they ran out of supply. I mean, LG? There are few people who have faith in LG, their android update policy is enough to associate that company with incompetence.
Even with the nexus phone being an LG, they already managed to leave a bad impression in countries with no play store by announcing a price which could be nearly up to double the price of the nexus 4 in the play store.
What if LG is not able to keep up with demand? What is your say? What do you think is going on?
I visited a site that mentioned that Google has done this before, in order to see how high the demand is and to fulfill the needs a few days/weeks/month later. Was not following the galaxy nexus sale , anyone that experienced this here?
Hope this thread doesn't get closed, I could imagine some interesting discussion going on
no, just scumbags trying to make a profit by hogging all the stock
AznDud333 said:
no, just scumbags trying to make a profit by hogging all the stock
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I think it its engineered, why not Apple do it all the time
Naw, I mean, there really weren't any commercials over it or anything. Google has the money to spend on advertising for it, but they honestly didn't. I feel they just weren't too sure on when to do it themselves and that we were probably making more out of it than needed to be.
dahmmy said:
I think it its engineered, why not Apple do it all the time
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Click to collapse
google's site never lags
it lagged today.
It's a big global conspiracy to ruin your day. Mission accomplished.
If this was Apple then, yes, I would believe it was intentional but honestly the server was crashing. What I saw you can't fake. It was like a DDoS attack. That server was basically brought to its knees. SERIOUSLY.
Sent from my Nexus 7
Ravynmagi said:
It's a big global conspiracy to ruin your day. Mission accomplished.
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Click to collapse
The Illuminati. Yes! They are watching us!
@above: hmmm. I prefer Lg is incompetent
I think it may be a combination of Google's lack of concern about their customers combined with a poor working relationship with LG. I don't think Google wants publicity about this launch because they and LG won't come off looking too good. Google must have thought it was getting more units from LG because they had indicated they would sell the Nexus 4 via Playstore in the Netherlands and Belgium. Then at the last minute, they had to cancel those commitments because they didn't get enough units from LG. At the same time, non-US carriers selling the phone at a much higher price than Google got units ahead of launch time so their customers could physically have the phone today. Hence, you have a number of users posting threads here about problems with their brand new Nexus 4 phones, which they have in hand. So, LG shorted Google to send phones to vendors that sell the Nexus 4 at a higher price. I suspect the whole sales cycle of this phone may be marked by problems between Google and LG, resulting in supply shortages for the lower priced Google-sold phones. If consumers want the phone and don't want to wait for weeks at a time between LG's periodic shipment of a meager supply to Google, you may be forced to buy from other vendors at a higher price or, in the US, a contract commitment to T-Mobile. It looks like Google + LG= oil + water; they don't mix well.
mke1973 said:
I think it may be a combination of Google's lack of concern about their customers combined with a poor working relationship with LG. I don't think Google wants publicity about this launch because they and LG won't come off looking too good. Google must have thought it was getting more units from LG because they had indicated they would sell the Nexus 4 via Playstore in the Netherlands and Belgium. Then at the last minute, they had to cancel those commitments because they didn't get enough units from LG. At the same time, non-US carriers selling the phone at a much higher price than Google got units ahead of launch time so their customers could physically have the phone today. Hence, you have a number of users posting threads here about problems with their brand new Nexus 4 phones, which they have in hand. So, LG shorted Google to send phones to vendors that sell the Nexus 4 at a higher price. I suspect the whole sales cycle of this phone may be marked by problems between Google and LG, resulting in supply shortages for the lower priced Google-sold phones. If consumers want the phone and don't want to wait for weeks at a time between LG's periodic shipment of a meager supply to Google, you may be forced to buy from other vendors at a higher price or, in the US, a contract commitment to T-Mobile. It looks like Google + LG= oil + water; they don't mix well.
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.... Or maybe not. That's quite the stretch.
shadehh said:
Also the fact that the number of sold devices are not being reported, wouldn't that indicate that the amount of devices are actually not that much after all? (mentioning the # of sold units would discredit their bragging right? - Of course, only if it is not high)
Click to expand...
Click to collapse
It is Google's policy not to release sales figures. So it indicates absolutely nothing. Asus released some Nexus 7 sales figures last month and apparently Google was not too happy.
This is what happens when things are under-priced. Whether mandated by law (price controls) or whether a company does it out of its own desire (Nexus 4). Selling something below its true value will lead to shortages because the demand will be too heavy. Combine that with Google probably trying to not overestimate the demand in order to not build too many, it should be no surprise that it sold out so quickly.
FallN said:
If this was Apple then, yes, I would believe it was intentional but honestly the server was crashing. What I saw you can't fake. It was like a DDoS attack. That server was basically brought to its knees. SERIOUSLY.
Sent from my Nexus 7
Click to expand...
Click to collapse
very true... i had an N4 in my cart 8 times today (EIGHT freakin times) and each and every time i tried to proceed, i got that craptastic yellow banner telling me that something happened on the back end. their servers were absolutely hammered.
PincheKeith said:
This is what happens when things are under-priced. Whether mandated by law (price controls) or whether a company does it out of its own desire (Nexus 4). Selling something below its true value will lead to shortages because the demand will be too heavy. Combine that with Google probably trying to not overestimate the demand in order to not build too many, it should be no surprise that it sold out so quickly.
Click to expand...
Click to collapse
I'm happy with the low price and even if I have to wait a year to get a nexus 4 I'm so happy Google set new standards. I don't find the price too cheap, they could have easily added 50 bucks more for all I care. But I'm glad they set new standards for great hardware all others phone manufacturers must now adjust
I waited all day, from 3:00 AM EST when it was SUPPOSED to launch, to 12:00 PM EST when the "second" launch time was "announced", resulting in two times in which the "Add to Cart" button popped up but didn't work after clicking through. The minute I step inside my house, I rush to my computer, and see a nice, red SOLD OUT sign.
It had to be either a) testing the waters in terms of demand for the device (highly unlikely), b) a publicity stunt in order to garner more (free) attention for the Nexus4 (as we say it, any publicity is good publicity), or c) as stated a shortage of devices as a result between miscommunication/communication breakdowns between LG and Google.
Thoroughly disappointed. I sold my phone (GNexus) in the hopes of upgrading for very little $, and now I'm stuck with no phone at all.
oceansaber said:
I waited all day, from 3:00 AM EST when it was SUPPOSED to launch, to 12:00 PM EST when the "second" launch time was "announced", resulting in two times in which the "Add to Cart" button popped up but didn't work after clicking through. The minute I step inside my house, I rush to my computer, and see a nice, red SOLD OUT sign.
It had to be either a) testing the waters in terms of demand for the device (highly unlikely), b) a publicity stunt in order to garner more (free) attention for the Nexus4 (as we say it, any publicity is good publicity), or c) as stated a shortage of devices as a result between miscommunication/communication breakdowns between LG and Google.
Thoroughly disappointed. I sold my phone (GNexus) in the hopes of upgrading for very little $, and now I'm stuck with no phone at all.
Click to expand...
Click to collapse
man, i feel you. i sold my gnex and my backup (g2x) device in anticipation of the nexus 4. I'm old and tired. So, i'm just going to go to my tmobile store and pick up a note 2. I got one for my wife last week and she has been completely satisfied with it. I'll re-evaluate the state of android in a couple months, whereby I might sell the note 2 to finally get the nexus 4. we'll see.
If you believe that its all a conspiracy, put your aluminum foil hat back on and go sit in the corner.
PincheKeith said:
This is what happens when things are under-priced. Whether mandated by law (price controls) or whether a company does it out of its own desire (Nexus 4). Selling something below its true value will lead to shortages because the demand will be too heavy. Combine that with Google probably trying to not overestimate the demand in order to not build too many, it should be no surprise that it sold out so quickly.
Click to expand...
Click to collapse
Finally someone who understand economics.
Put gas half price today. Guess what will happen. Even if gas stations prepared. EVERYONE will gas and you can't prepare for that. Supply is driven by how valuable it is to sell. Demand is determined by how much value you get. They released a 600$ phone at 300$. Take off your tinfoil hats and go to school.
There is no conspiracy. We are talking about about a relatively small cell phone player in LG and a device with a small profit margin. Considering that both these companies are banking on the same profit model, ie, google wants large volume sales for ads and LG wants large volume to compensate for smaller net profits per phone. With the next big phone literally always around the corner, to delay sales in any way is very bad for both companies.
shadehh said:
I don't find the price too cheap, they could have easily added 50 bucks more for all I care.
Click to expand...
Click to collapse
Then it is too cheap If people are willing to pay $400 or $450, and they sell it for $350, that's too cheap. That's why demand is (and should be!) so high.
I don't think they did this intentionally, they have a great device at a great price and it sold out.

Theory as to why LG is constantly out of stock, and why Google made a bad decision.

I have a theory as to why the Nexus 4 is out of stock, and for such a long time. This may or may not have been mentioned before (probably has) but I just wish to discuss it. Remember, this is purely speculation.
The reason LG has only made around 400,000 handsets and starved production was due to their own flagship, the LG Optimus G. Every single thing about this phone, is IDENTICAL to the Nexus 4, besides the fact the N4 is rocking stock stock android and the aesthetics are slightly different. The N4 has an advantage among the developer community with it being able to be torn apart and tweaked and tinkered with, unlike the OG which LG is still being a little b____ about the bootloader on many of their recent phones.
The 16GB LG Optimus G is $800 here in Australia, and the 16GB Nexus 4 is $400. You do the math.
I don't know if LG's actuaries are idiots or something, but they would have known about the guaranteed success of the next Nexus device, going on the sales figures of all the other devices. LG thought that making a tiny amount of profit on every Nexus device and in turn increasing their companies reputation in the mobile business, was worse than not making ANY profit on their CRAPBOX 3000 (LG Optimus G). I can see where they are coming from, as they don't want their spectacular flagship to be left in the dust with full stock, but zero sales so basically I think they were just chucking a cry or something.
SO DON'T HATE ON GOOGLE FOR THE LACK OF NEXUS'
What you can hate Google for, is choosing LG in the first place. Yeah, they may of felt generous and were trying to support them but at the cost of their own company getting hated? Why didn't they just buy LG like they did with Motorola, and that would be the end of it? When I heard of the new Nexus Device, I celebrating because for some reason I thought they were going to choose HTC for production (who knows why). Nek minnit, they choose some struggling company that either can't or won't keep up with production.
This may of looked like a run-out-of-the-mill rant, but this was some, high-quality, researched ranting skills to pay the bills.
Discuss.
^ not sure what you meant by high quality research as I don't see any evidence, references and all I can see is pure speculations that have been floating around in this forum since the day problems with stock started.
Do share some of your research details with us to base your ideas that has some concrete evidence of what you are assuming I'd happening and I'll gladly click thanks button under your name
Sent from my Nexus 4 using xda app-developers app
gie62001 said:
^ not sure what you meant by high quality research as I don't see any evidence, references and all I can see is pure speculations that have been floating around in this forum since the day problems with stock started.
Do share some of your research details with us to base your ideas that has some concrete evidence of what you are assuming I'd happening and I'll gladly click thanks button under your name
Sent from my Nexus 4 using xda app-developers app
Click to expand...
Click to collapse
Yeah he did say it was purely speculation. Whatever the reason, the lack of stocks is simply annoying.
Sent from my Nexus 7 using xda premium
I fail to see how you guys can always come up with such gossip.
Google has made contracts with LG and they are producing the amount Google demanded.
Whether it was Google ordering just a tiny amount of phones, or LG can't keep up with production, due to manufacturing errors or anything else, we will never know.
Also, LG is not a bad hardware manufacturer. They do have the capability to spit out hundreds of thousand devices a month, and they've proven that they can.
For your info: devices produced in October: 75k
Devices produced in December: 400k
As you can see, they can definitely keep up with the demand, it's probably just Google ordering only tiny amounts of it.
A contract breach, as in simply not delivering the amount of phones Google demanded, would have legal consequences for them, so I guess they will be thinking twice before hampering the production.
Cheers.
Lg has good hardware? Hmmmm...i don't know. Have you hold Lg L9 or L7, its a pure piece of ****. Quality zero. Maybe they build good displays and parts, but housing of every device is ****y. TVs also.
Sent from my HTC Sensation Z710e using Tapatalk 2
Nuu~ said:
I fail to see how you guys can always come up with such gossip.
Google has made contracts with LG and they are producing the amount Google demanded.
Whether it was Google ordering just a tiny amount of phones, or LG can't keep up with production, due to manufacturing errors or anything else, we will never know.
Also, LG is not a bad hardware manufacturer. They do have the capability to spit out hundreds of thousand devices a month, and they've proven that they can.
For your info: devices produced in October: 75k
Devices produced in December: 400k
As you can see, they can definitely keep up with the demand, it's probably just Google ordering only tiny amounts of it.
A contract breach, as in simply not delivering the amount of phones Google demanded, would have legal consequences for them, so I guess they will be thinking twice before hampering the production.
Cheers.
Click to expand...
Click to collapse
Lol, do you think "hundreds of thousands of devices a month" is anywhere near enough for a $600 phone priced at $350? Try several millions a month.
Oh and those production numbers were just speculation (albeit a logical one). No one knows the exact numbers.
Why does everyone blame LG? Is there a valid excuse for Samsung taking forever to restock the Nexus 10?
Sent from my Nexus 4 using xda app-developers app
Good point. Google is just building the hype. If they wanted to really earn money on N4 they would behave differently.
Sent from my HTC Sensation Z710e using Tapatalk 2
ed10000 said:
Lol, do you think "hundreds of thousands of devices a month" is anywhere near enough for a $600 phone priced at $350? Try several millions a month.
Click to expand...
Click to collapse
Yes, 400k might not be enough. But don't expect the nexus to sell like the iPhone or a Samsung galaxy. There simply is no marketing at all for the nexus. Companies like Apple and Samsung invest millions every year into marketing. Have you ever seen a nexus 4 ad other than on YouTube?
Probably not. The nexus' demographic is mostly tech enthusiasts.
I don't think LG is intentionally halting the manufacturing process, i mean they would be really stupid to do so, some of of you seem to forget that one of the biggests ways to sell is having quantity over price, if LG sells 5 million Nexus 4 that would make them a ton more money than selling 1 million Optimus G :laugh: , also it doesn't hurt that a lot more people are talking good stuff (regarding quality) about them, that could never hurt a company .
What LG did on purpose (in my opinion) was refusing to provide a 32 gb version of the phone , so if people want more storage (and LTE) they should buy the Optimus G
hundreder said:
Lg has good hardware? Hmmmm...i don't know. Have you hold Lg L9 or L7, its a pure piece of ****. Quality zero. Maybe they build good displays and parts, but housing of every device is ****y. TVs also.
Sent from my HTC Sensation Z710e using Tapatalk 2
Click to expand...
Click to collapse
I had a 2012 47" LG HDTV and the housing was actually pretty nice. They used some type of real brushed metal for the housing instead plastic made to look like brushed metal like other manufacturers. I ended up returning it for a bigger TV though.
Sent from my Nexus 4 using xda app-developers app
hundreder said:
Lg has good hardware? Hmmmm...i don't know. Have you hold Lg L9 or L7, its a pure piece of ****. Quality zero. Maybe they build good displays and parts, but housing of every device is ****y. TVs also.
Sent from my HTC Sensation Z710e using Tapatalk 2
Click to expand...
Click to collapse
I disagree. I had a g2x and it was awesome except for the software. When is the last time you had a phone with HDMI out??? G2x had it, also was the first device with dual core.
Sent from my Nexus 4 using xda app-developers app
Nuu~ said:
Yes, 400k might not be enough. But don't expect the nexus to sell like the iPhone or a Samsung galaxy. There simply is no marketing at all for the nexus. Companies like Apple and Samsung invest millions every year into marketing. Have you ever seen a nexus 4 ad other than on YouTube?
Probably not. The nexus' demographic is mostly tech enthusiasts.
Click to expand...
Click to collapse
Actually I've seen nexus 4, 7 and Samsung chromebook adverts in newspapers and on advertising boards on the London underground. Haven't seen any marketing for the nexus 10 though.
Sent from my Nexus⁴ using xda premium
Sent from my Nexus 4 using Tapatalk 2
Blame Google because they are paying LG and someone really messed up in projecting how many to produce.
I mean last time it was Verizon holding it back so Google had to plan better this time.
Sent from my Galaxy Nexus using Tapatalk 2
Nuu~ said:
Yes, 400k might not be enough. But don't expect the nexus to sell like the iPhone or a Samsung galaxy. There simply is no marketing at all for the nexus. Companies like Apple and Samsung invest millions every year into marketing. Have you ever seen a nexus 4 ad other than on YouTube?
Probably not. The nexus' demographic is mostly tech enthusiasts.
Click to expand...
Click to collapse
I'm sorry but this post is complete and utter rubbish. I have seen more adverts on telly for nexus 4 and nexus 7 than I have Samsung devices in the last month, so you cannot claim that there is no marketing at all. Get your facts straight.
Add to that the nexus adverts had me thinking it was an advert for an iPad, and Google are pretty bloody clever with their advertising.
biffsmash said:
I'm sorry but this post is complete and utter rubbish. I have seen more adverts on telly for nexus 4 and nexus 7 than I have Samsung devices in the last month, so you cannot claim that there is no marketing at all. Get your facts straight.
Add to that the nexus adverts had me thinking it was an advert for an iPad, and Google are pretty bloody clever with their advertising.
Click to expand...
Click to collapse
I can only speak for my country, but advertising for the nexus 4 is nonexistent here.
Hell, the only nexus ad I've ever seen was for the nexus s a few years ago. On the other hand, there are Samsung and Apple ads multiple times a day.
And I know that this is the case for a lot of countries.
biffsmash said:
I'm sorry but this post is complete and utter rubbish. I have seen more adverts on telly for nexus 4 and nexus 7 than I have Samsung devices in the last month, so you cannot claim that there is no marketing at all. Get your facts straight.
Add to that the nexus adverts had me thinking it was an advert for an iPad, and Google are pretty bloody clever with their advertising.
Click to expand...
Click to collapse
Which country?
rogerski1 said:
I disagree. I had a g2x and it was awesome except for the software. When is the last time you had a phone with HDMI out??? G2x had it, also was the first device with dual core.
Sent from my Nexus 4 using xda app-developers app
Click to expand...
Click to collapse
Yeah, but the O2X also doesn't have enough RAM, the proportions are a bit off and the spontaneous shut downs were never fully fixed. I have owned one for the past year and a half and wouldn't recommend it to anyone.
draugaz said:
Which country?
Click to expand...
Click to collapse
"telly" suggest the UK or somewhere there which makes sense as someone else says the "Tube" and such which is London's subway .
In the USA however, there is 0 ads on TV for the Nexus 4, there are some for the Nexus 7 but NEVER has there been one for the Nexus 4 or 10. Not even in the newspaper other than reviews and such mentioning it. Maybe that's why they don't however as they've already got tons of (positive) press here. In general, you advertise to get your name out there and build brand, once you are out there and everyone knows your name you tend to save those ad dollars.

The Future of Nexus Smartphones

As most(if not all) of us watch google i/o, google released the galaxy s4 with stock android, as well as "prompt" future updates. What do you guys think this means for the future of nexus do you think companies will continue to build phones for google when they can just appeal to everyone and relase a version of their flagship with stock android?
I guess I never really thought about it yet. That's a good point though. I just got into the Nexus family around a month and a half ago and I already feel at home. If there is not a future for Nexus devices, I will be extremely sad. Yeah, you still get pure Android, plus an unlocked bootloader, but there's just something about having a Nexus. I guess I just feel unique having it, you know? I'm not just another guy with a Galaxy S phone. Plus, having a Nexus phone kind of shows that you're a power user/developer. I dunno...I just really love my Nexus 4 and want to be able to buy the next one when I'm ready.
That all said, it makes perfect sense. I'm pretty sure Google sells the Nexus at a loss. And if that's not enough, you see threads on here all the time with people finding the smallest reasons for getting an RMA, reasons that aren't even valid but Google fulfills them anyway. Not only that, but people will brick their Nexus cuz they're stupid and come here to ask what they can do to RMA. They do this when it was CLEARLY their fault for bricking it and they think Google should have to cover the cost for a new one because they (the person) flashed a ROM/kernel for a different phone. If I were Google, I would probably be looking at this option, sadly.
the S4 isnt the only non nexus that has been released in the past with pure android, nor will it be the last. htc has released stock android phones before, so has lg. sony has even been working with aosp for the xperia http://techcrunch.com/2013/04/23/so...n-source-project-for-the-xperia-z-smartphone/
Here's the deal Nexus gives you the most bang for your buck. No one else gives you that. The N4 is half the price of the S4. The next Nexus phone will be a power house of hardware for a bargain.
Sent from my Nexus 4 using xda app-developers app
simms22 said:
the S4 isnt the only non nexus that has been released in the past with pure android, nor will it be the last. htc has released stock android phones before, so has lg. sony has even been working with aosp for the xperia http://techcrunch.com/2013/04/23/so...n-source-project-for-the-xperia-z-smartphone/
Click to expand...
Click to collapse
This, I remember the biggest reason I bought my G2 was due to stock Android. It might not have been AOSP, but was close enough. I kept it running until I got my Nexus, and it was even running 4.2.
The Nexus lines future will always be as bright as the Sun!
galaxys said:
The Nexus lines future will always be as bright as the Sun!
Click to expand...
Click to collapse
lol i hope your right about that one. I just don't want it to be to the point that nexus users get the crap specs from an OEM that is more worried about their flagship. Why should they go all out on a nexus device when they can provide each type of consumer what they want...a version with either their skinned version of android or pure android. Just playing devil's advocate lol...
Simple there contracted to. If you don't fulfill your contract you don't get paid. To be honest I almost bought a S3 cuz I didn't do much research before buying a phone. The nexus is the best kept secret from none rooters, flashers, etc. Thank god I do tons of research before buying anything and troll xda
Sent from my Nexus 4 using xda app-developers app
Galaxy S4 is not the first device reintroduced in the i/o with stock android, back in 2011 or 2010 google introduced Galaxy Tab 10.1 with stock honeycomb in it.
And for AOSP support, not every device shipped with vanilla android in it get an AOSP support.
Sent from my Nexus 4 using Tapatalk 2
I don't get the reaction to Samsung's Google edition S4. It isn't a Nexus and shouldn't be compared with a Nexus. The Nexus product line is first and foremost designed by Google then built by their respective manufacturers. The S4 doesn't even follow the button layout for Android! This Google edition S4 is just purely software and since I assume that Samsung will be the ones responsible for maintaining the software, it'll still be second class compared to the Nexus line when it comes to the latest and greatest Android version.
intersectRaven said:
I don't get the reaction to Samsung's Google edition S4. It isn't a Nexus and shouldn't be compared with a Nexus. The Nexus product line is first and foremost designed by Google then built by their respective manufacturers. The S4 doesn't even follow the button layout for Android! This Google edition S4 is just purely software and since I assume that Samsung will be the ones responsible for maintaining the software, it'll still be second class compared to the Nexus line when it comes to the latest and greatest Android version.
Click to expand...
Click to collapse
Nexus 4 is based on LG Optimug G. It is almost like a little redesigned Optimus G with Google's software. SGS4 Google Edition isn't redesigned, but also got Google's software. It will be sold through Play Store, it was revealed on Google I/O by Hugo Barra and it was said that it will get updates at the same time as other Google's devices. So like it or not, SGS4 Google edition could be easily called Nexus 5. I guess they didn't want to launch new Nexus only a few months after LG Nexus 4 became widely available.
Nexus 4 is very good phone, the best for its price, but got some problems - thermal throttling, cracked glass on back, which isn't cheap to replace due to internals on backcover, limited internal space and lack of SD cards, camera isn't very good. Other than that, it is very good phone. SGS4 got great hardware, but software is its weak point and I didn't want to get another Galaxy S phone because of that. But now SGS4 Google Edition is very tempting, because finally great hardware will get great software + fast updates.
The Galaxy S4 Google Edition is not a Nexus device, as much as Samsung fanboys would believe it is.
Apart from Google calling it the Nexus S4, planning to update it timely and selling it through the play store.
I'm sure Google has nice plans for their Nexus series. Or will stop making them. Which I highly doubt! Hope.
Also I don't know how anyone could get themselves to believe they sell a product at a loss.
Sent from my Nexus 4 using xda premium
+1
Sent from my Nexus 4 using Tapatalk 2
Google/Android have a confusing agenda of where they want to go with the Android platform.
I guess their agenda is to just throw the kitchen sink at everyone and everything and hope to conquer the mobile platform that way.
I thought they had a certain way they were going to do the "Nexus" line.
Nexus is "pure google"
"Prompt" updates
"state of the art" hardware (with horrible camera..ha ha)
affordable pricing
The Galaxy Nexus and Nexus 4 (especially with the price reduction of the original GNex to $399 than $350).
I personally do not think the pure Galaxy S4 will be a big seller in the USA. Most Americans are on family plans with post paid services like ATT or Verizon.
Paying full $650 price for a smartphone only makes sense if you go prepaid and have 1-2 lines. Most Americans on post paid have 4-5 lines where subsidized phones make sense.
No one remembers the original iPhone was $499/599. It was not a big seller except for techies or people who have too much money. When Apple dropped the price to $399 it boosted sales quickly.
There is still plenty of money to be made by selling phones below $400. Most top of the line smartphone cost $200-250 to make. So profit margin is still there.
---------- Post added at 01:07 PM ---------- Previous post was at 01:02 PM ----------
myturbo1 said:
I'm sure Google has nice plans for their Nexus series. Or will stop making them. Which I highly doubt! Hope.
Also I don't know how anyone could get themselves to believe they sell a product at a loss.
Sent from my Nexus 4 using xda premium
Click to expand...
Click to collapse
I know. It costs $200-250 to make a smartphone with high end specs. Even accounting for advertising costs. Their is still $50-100 profit to spare.
I think Google purposely kept the 8GB/16GB with no SD to secure profits.
I might have missed something but does anyone else think that the fact Google bought Motorola mobility means they are going to eventually stop dependence on other phone manufacturers? It sucks to build awesome software and have to rely on other companies to put it on. Then said company delays in putting updated software on devices which in turn makes people upset they got android in the first place.
I know kinda out there but i can kinda see how this would work.
Sent from my Nexus 4 using xda premium
myturbo1 said:
Also I don't know how anyone could get themselves to believe they sell a product at a loss.
Click to expand...
Click to collapse
Because they probably do. Let's break it down. It'll be quite a journey, so pack a lunch.
The cost of materials alone cost, let's say, $250. That's only $50-$100 "profit" per unit. Considering how many units they sell, that's still a large amount of money, right? Well, that $250/unit cost doesn't cover labor (that I know of, I could be wrong; in which case disregard this point, there are plenty more). They have to pay the people to assemble the phones. Then they have to pay to ship it over-seas to get it to the U.S. Don't quote me here, but I think companies have to pay taxes on commercially-imported things. You know the U.S. government want their cut. Even if that's not true, don't worry; there are plenty of other things to eat that $50 up.
Research and Development is probably the biggest cost of any small electronics device. You have to pay those engineers to design your phone with the hardware you want and make it the size you want. I'm no pro or anything, but I'm pretty sure R&D has beta-testing of the hardware from the prototype all the way to the finished product. That's hardware that will never see light of day.
I take that back about R&D being the most costly thing about making electronics. Let's touch on the point I made of people RMA'ing. When it's legitimate, it costs the company a ridiculous amount of money. I don't even know what they do with the phones that are RMA'd, but I don't see them selling refurbished phones on the Play store. That's money down the drain. And that's when it's legitimate. Think about those guys that RMA because they are idiots and flashed the wrong kernel to the phone. Google still fulfills those RMA's! They lose so much doing this, it boggles my mind.
Now let's look at why. Why would Google knowingly sell devices at a loss? It isn't exactly the best business practice to sell things and lose money on them. First, let's look at the developers. This phone is a "developers" phone. If you're developing for Android, you are probably using a Nexus to test your app and tweak it. When you're done developing your app, what do you do? Publish it in the Play store. All these "app stores" you see everywhere are huge cash cows, and they cost almost nothing to keep going. Throw an app store up, shave a little off the top of every purchase, and kick back while the money flows in. Secondly, and this is true for every company that sells anything, there is the reputation of the company/product. You make a solid phone and sell it for pretty cheap, you get happy customers. Happy customers tend to also be returning customers. I know people that buy iPhones simply because it's called "iPhone", and has the apple on the back of it. That's purely the reputation of the phone. They were happy with their previous phones, so they simply go to the updated version of it when they need to buy another one. I picked on iPhones because it's probably the most widespread example of this, plus it has to do with a phone, which is what we're talking about.
The nexus line is Googles way of thanking developers and phone enthusiasts, they are ones that buy the phone
Sent from my Nexus 4 using xda app-developers app
---------- Post added at 04:26 PM ---------- Previous post was at 04:21 PM ----------
Johmama said:
Because they probably do. Let's break it down. It'll be quite a journey, so pack a lunch.
The cost of materials alone cost, let's say, $250. That's only $50-$100 "profit" per unit. Considering how many units they sell, that's still a large amount of money, right? Well, that $250/unit cost doesn't cover labor (that I know of, I could be wrong; in which case disregard this point, there are plenty more). They have to pay the people to assemble the phones. Then they have to pay to ship it over-seas to get it to the U.S. Don't quote me here, but I think companies have to pay taxes on commercially-imported things. You know the U.S. government want their cut. Even if that's not true, don't worry; there are plenty of other things to eat that $50 up.
Research and Development is probably the biggest cost of any small electronics device. You have to pay those engineers to design your phone with the hardware you want and make it the size you want. I'm no pro or anything, but I'm pretty sure R&D has beta-testing of the hardware from the prototype all the way to the finished product. That's hardware that will never see light of day.
I take that back about R&D being the most costly thing about making electronics. Let's touch on the point I made of people RMA'ing. When it's legitimate, it costs the company a ridiculous amount of money. I don't even know what they do with the phones that are RMA'd, but I don't see them selling refurbished phones on the Play store. That's money down the drain. And that's when it's legitimate. Think about those guys that RMA because they are idiots and flashed the wrong kernel to the phone. Google still fulfills those RMA's! They lose so much doing this, it boggles my mind.
Now let's look at why. Why would Google knowingly sell devices at a loss? It isn't exactly the best business practice to sell things and lose money on them. First, let's look at the developers. This phone is a "developers" phone. If you're developing for Android, you are probably using a Nexus to test your app and tweak it. When you're done developing your app, what do you do? Publish it in the Play store. All these "app stores" you see everywhere are huge cash cows, and they cost almost nothing to keep going. Throw an app store up, shave a little off the top of every purchase, and kick back while the money flows in. Secondly, and this is true for every company that sells anything, there is the reputation of the company/product. You make a solid phone and sell it for pretty cheap, you get happy customers. Happy customers tend to also be returning customers. I know people that buy iPhones simply because it's called "iPhone", and has the apple on the back of it. That's purely the reputation of the phone. They were happy with their previous phones, so they simply go to the updated version of it when they need to buy another one. I picked on iPhones because it's probably the most widespread example of this, plus it has to do with a phone, which is what we're talking about.
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R&D is done by the contractor, which I'm sure is already spent by the contractor since they build phones, the people manufacturing the phones are in sweat shop conditions so I don't think there paid much. My family does a lot of over seas manufacturing and you would be surprised at how much it really cost
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Tunderpimp said:
The nexus line is Googles way of thanking developers and phone enthusiasts, they are ones that buy the phone
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---------- Post added at 04:26 PM ---------- Previous post was at 04:21 PM ----------
R&D is done by the contractor, which I'm sure is already spent by the contractor since they build phones, the people manufacturing the phones are in sweat shop conditions so I don't think there paid much. My family does a lot of over seas manufacturing and you would be surprised at how much it really cost
Sent from my Nexus 4 using xda app-developers app
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Not really. It's a consumer device in the same arena as the Galaxy series, however Google has failed miserably at advertising and pushing their product due in part to poor management. The same corporate structure that gives rise to things like AOSP is not the ideal format for selling items across multiple countries and cultures. They still cannot definitively say what the end goal is with the Nexus line. If they're trying to steer people into Google services then they need to figure out how to advertise and sell, which in this country means getting in bed with the carriers, and that will not change no matter how much these forums boast about prepaid plans. That doesn't even begin to get into the area of "open source" and how no one outside of this community gives a damn.
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