iSuppli's teardown reveals a $174.15 cost on the Nexus One
Without much hesitation, iSuppli took the Nexus One fresh from of its official release and tore it apart for the entire world to witness. During the whole process, they meticulously went through the cost of each part – all culminating to its $174.15 bill of materials cost. It’s of course known that the subsidized cost on T-Mobile with a 2-year contract brings the usual $529 price of the Android handset all the way down to $179. The preliminary estimate that iSuppli has come up with does not take into consideration other expenses such as manufacturing, software, box contents, accessories, and royalties – only hardware and component costs. Senior analyst for iSuppli, Kevin Keller, states that “With the Nexus One, Google has taken the most advanced features seen in recent smartphone design and wrapped them up into a single sleek design.” This directly makes note of the Snapdragon processor, AMOLED display, and durable unibody construction – something seen on different phones, but never combined all up into one. The Snapdragon processor took in a cost of $30.50 according to iSuppli; making it the single most expensive component in the Nexus One. On the other hand, the 3.7” AMOLED display that’s distinctively found on the Nexus One came in at $23.70. Not considering all the other external costs, it seems that there is still a slight profit to be made out of Google’s flagship phone.