Google on the Nexus 6 pricing: people want $199 flagships, this will sell
posted by Daniel P. / Oct 31, 2014, 8:07 AM
Google raised a lot of eyebrows when Motorola announced the Nexus 6 partnership handset, as it strays away from the typical Nexus tradition not only by being a no-compromise giant phablet, but also with the decision to out it at full price, like each and every other flagship out there, instead of subsidizing it to an extent.
We are selling the Nexus 6 in a way most people are used to buying it," said Hiroshi Lockheimer, VP of Android engineering at Google.This is a veritable U-turn in Google's strategy - the Nexus 6, as all other flagship phones, is selling for $649 unlocked, and the usual subsidized price with a two-year contract, but this time on all five major carriers in the US. "
We are selling the Nexus 6 in a way most people are used to buying itThe logic behind Google's decision is that research showed a predominant interest in a decked-out smartphone, whose higher pricing would be offset with carrier subsidies, as is the usual business model in the US. Nexus fans understood the power of a stock Android device that sells for $350 unlocked, but the rest of users, and these are the vast majority, only saw that the device costs much higher than the usual $199 they are accustomed to paying for a high-flying smartphone on a contract.
Here is why Google decided to go with the beaten path when it came to the Nexus 6, and release a no-holds-barred device, pricing it accordingly. According to Sandeep Waraich, a product manager for the Nexus 6: "It was a deliberate decision to push the boundaries on technology. We first arrived at the solution, then the price." There you have it. Actually, Google's folks think that this way the Nexus 6 might sell more than the previous editions, as it will have much more visibility in carrier stories, and availability from the manufacturer, for whom this will be hero device, earning respectable margins. We'll see if that credo pans out when the first sales numbers start to trickle in.
Google Nexus 6 OS: Android 7.1 Nougat, 7.0 Nougat, 6.0 Marshmallow, 5.1 Lollipop, 5.0 Lollipop View Full specs
- Display 6.0" 1440 x 2560 pixels
- Camera 13 MP / 2 MP front
- Processor Qualcomm Snapdragon 805, Quad-core, 2700 MHz
- Storage 64 GB
- Battery 3220 mAh(24h talk time)
Posts: 1412; Member since: Jul 06, 2014
AT&T Verizon T-Mobile Sprint are so happy to see nexus 6 priced at $699
posted on Oct 31, 2014, 8:15 AM 7
Posts: 632; Member since: Jul 11, 2013
Yes they are, except T-Mobile who doesn't make much money off their phones. Selling a brand new phone at $0 with subsidy automatically screams cheap to the average consumer. They have in their heads that phones cost $200 to make and don't realize there is any subsidy behind that numbers. So when the average consumer sees $0 on contract, they think they are literally giving phones away for free and not paying $400 for it (which they actually are). While I hate it, it's an unfortunately smart move by Google.
posted on Oct 31, 2014, 8:21 AM 3
Posts: 2; Member since: Oct 31, 2014
Phan, I understand what you're saying. that subside is divided by 24 months and that is why you pay more with those companies. But, with companies like T-mobile. You have to pay the full amount for your phone. divide that amount by 24 months and added to your bill and it comes out to the same. The difference is that you pay in advance. But, are out of that money. I am pretty sure a lot of people buy it using credit cards and the interest might be worst.
posted on Oct 31, 2014, 10:27 AM 3
Posts: 2; Member since: Nov 03, 2014
T-Mobile doesn't have subsidies or service contracts. It's a $0 down payment (if you have good credit) and the full price is paid over 24 months. Nearly all of T-Mobile's phones are available for $0 down, so it doesn't really have a negative impact.
posted on Nov 03, 2014, 11:36 AM 0
Posts: 435; Member since: Jul 27, 2011
This only applies to US market, because here in Europe and in some other markets it will fail because 649€ off contract equals to 812,68$ that is way too much compared with the 349€ (437,02$) of the Nexus 5.
posted on Oct 31, 2014, 8:19 AM 10
Posts: 1121; Member since: Jan 10, 2014
Actually it's vice versa. People in Europe and asia don't have to deal with carrier exclusives. They always get their phones unlocked... so they are more used to it. But this nexus is still very expensive just like you said.
posted on Oct 31, 2014, 8:24 AM 0
Posts: 399; Member since: Aug 16, 2014
As long as it's cheaper than the six plus, then the price is reasonable.
posted on Oct 31, 2014, 8:31 AM 2
Posts: 1544; Member since: Feb 16, 2012
Fully on target. In Europe the old model is better as the subsidies have been much lower here and in many countries they are dissapearing. This phone seems to be for US and US only, but the rest of the world will have to suffer the decission. And many Nexus fans are already dissapointed and buying something else (I know at least one that went for the LG G3 instead).
posted on Oct 31, 2014, 8:35 AM 1
Posts: 1693; Member since: Aug 18, 2013
Nexus 5 (2015) would be so cool. Updated camera and speaker, bit larger battery, more durable display and a SD801 w/ 2GB of RAM (enough for "budget" phone), and an affordable price. I'd consider it.
posted on Oct 31, 2014, 9:13 AM 0
Posts: 34; Member since: Feb 05, 2007
649.00 us converts to 519. € is that better?
posted on Oct 31, 2014, 9:21 AM 0
Posts: 1986; Member since: Jul 07, 2012
So what about countries where there are no contract price.... Nexus 5 is doing well in india because they priced it reasonably.... Now this will be priced neck and neck with note 4...only pure stock fans will buy it...
posted on Oct 31, 2014, 8:27 AM 6
Posts: 372; Member since: Jun 14, 2010
Just release it in the stores already.
posted on Oct 31, 2014, 8:28 AM 1
Posts: 375; Member since: Jan 28, 2014
It's not enouhg that they sell out ,they need to keep bragging about it. Google is more and more dissapointing with every moronic statement.
posted on Oct 31, 2014, 8:29 AM 0
Posts: 55; Member since: Oct 23, 2014
What's moronic about this? Every manufacture and OEM brags on their flagship like it's the greatest thing since sliced bread. Why is it that when Google joins the fray, it's moronic, whereas when Apple does it, it's business as usual?
posted on Oct 31, 2014, 8:44 AM 1
Posts: 470; Member since: Feb 26, 2012
Google never releases their sale figures for Nexus devices, no reason to believe they would for this Nexus. IMHO, Google is trying to have a commercially successful flagship stock Android device without upsetting the Android OEMs too much. They are trying to prove to OEMs that people would actually pay a high price just to get Google's Android experience. It goes in line with their Motorola strategy (Stock Android, minimal but useful features), which worked pretty well.
posted on Oct 31, 2014, 8:45 AM 0
Posts: 1962; Member since: Aug 15, 2013
Without a massive marketing effort this phone is not going to sell well. Most people don't know what a Nexus phone is and it's going up against established players like Apple and Samsung. I can't imagine consumers picking this phone over the iPhone 6+ and the Note 4.
posted on Oct 31, 2014, 8:45 AM 2
Posts: 1451; Member since: Nov 05, 2010
Google must not know too much. Yes, people want $199 flagships, but they want $199 off contract pricing for flagships; or at least below $400 flagships, and they should be available at most all carriers.
posted on Oct 31, 2014, 9:00 AM 0
Posts: 26; Member since: Oct 18, 2013
Google knows exactly what it's doing. People mainly buy phones on contract in the US and by 199 is the standard pricing for a flagship. IPhone 6, galaxy s5, HTC one m8, all debut at that price and iPhones of course I've sold a 500 dollar on contract price 6 plus 128 gb. There's techies that was the best for their money and do their research and those people don't make anybody any money. It's the masses that don't do much research, get what their friends having, like what they see in a commercial, and most importantly look at the price as part of the perceived value of the device. Some folks don't want the LG g3 over the s5 because it's cheaper, and that makes them think it's a lesser phone. It's only when I can educate them about the specifications that they'll understand the real value of the phones.
posted on Oct 31, 2014, 9:43 AM 1
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