Of course, things look a tad better than they really are in reality, and despite the truly awesome value proposition, the Nexus 4, for example, hasn't really sold in quantities that could rival the big boys from Samsung or Apple. The same is expected with the Nexus 5, though it'll likely sell better than its predecessor. The reason for this is quite simple: the Nexus 4 was sold exclusively through the few Play Stores around the globe, while retail availability was truly poor. The suspected reasons for this are many, including lack of supply, but also the fact that margins couldn't have been that high to begin with. This situation has been somewhat bettered, as Google has partnered with a number of retailers in order to have the Nexus 5 reach the four corners of the world. At a price.
According to British retailers talking to The Guardian, Google is actually undercutting wholesalers by as much as £50 ($80), making the purchase through a Play Store significantly more compelling. Resellers can turn to LG and buy the phone for around £350 ($563, consumer electronics are expensive in the UK), whereas the British Play Store offers the handset for £300 ($483). While availability has been expanded, the situation with pricing hasn't really changed since the Nexus 4, according to CCS Insight's Ben Wood:
Wood also touches on the main driver behind the Nexus line:
In other words, keep to the Play Store, folks. It's likely to save you a sizable chunk of cash.
Source: The Guardian