Nexus One worth $174.15?

by Gaurav Kheterpal on January 12, 2010

Google Nexus One Bill of Material - 174.15$

Google Nexus One Bill of Material - 174.15$

Many people ask me if the price tag of Google Nexus One – $529 (unsubsidized) and $179 with a two year service contract from T-Mobile is justified?

According to a recent Teardown Analysis by iSuppli, a leading market intelligence firm, Google’s Bill of Material (popularly known as BOM) for Nexus One comes out to be $174.15. While this includes the hardware cost, it does NOT include expenses incurred for software, boxing, accessories, manufacturing and royalties.

The most costly component that goes into Nexus One is the $30.50 1 GHz Qualcomm Snapdragon based baseband processor which accounts for nearly 20% of Nexus One BOM. The other major components contributing to the costs are the AM-OLED Display, Unibody Design, 4GB DDR and the Capacitive Touch Screen.

If I include the manufacturing costs, software costs and the royalties, I’d say that $179 with a 2 year service contract sounds like a pretty good deal to me. Regarding the unsubsidized price of $529, it might sound like a lot of money to many people. If you have the money, I’d say Go For It !

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Written by: Gaurav Kheterpal. www.digitcom.ca. Follow TheTelecomBlog.com by: RSSTwitter,Identi.ca, or Friendfeed

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