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Google's Nexus 5 wholesale price exceeds retail, UK retailers say

Google's Nexus 5 wholesale price exceeds retail, UK retailers say
Google's Nexus line of contract-manufactured handsets, at least as of late, has become prominent thanks to a healthy mix of a great quality, high-performing handset that also carries a bargainious price tag.

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:

We saw the same thing with the Nexus 4,” Wood explains. “With the Nexus line, Google always goes for very aggressive pricing with its manufacturing partner.”

Wood also touches on the main driver behind the Nexus line:

Although it is unlikely Google would sell the Nexus 5 at a straight loss, it is highly likely that it would sell it at around cost or with very little margin,” Wood commented. “Google will only sell around 1-2m Nexus 5s, but they will be bought by key people – Android evangelists, developers and influencers – spreading the Android brand.”

In other words, keep to the Play Store, folks. It's likely to save you a sizable chunk of cash.

Source: The Guardian

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posted on 08 Nov 2013, 07:08 5

7. PBXtech (Posts: 1032; Member since: 21 Oct 2013)

The Nexus 5 is the biggest anti-Apple statement ever made. The iPhone got an overwhelming amount of people to accept paying too much for phones, now Google is showing them a better way. You can make a powerful high end phone and keep it affordable.

posted on 08 Nov 2013, 07:25 1

8. sniper1087 (Posts: 531; Member since: 31 Dec 2011)

The problem is the uninspired design and battery life, camera is better than before, but not better than that of the iPhone and I have both phones and been doing some comparison. The nexus is still good for the price, that's the reason I have both.

posted on 08 Nov 2013, 08:07 1

9. brar.arsh (Posts: 202; Member since: 12 Sep 2012)

I have Nexus 5 and my Wife has Iphone 5S..

Camera is definitely better in Nexus 5..

posted on 09 Nov 2013, 12:41 1

14. Sriniva1995 (Posts: 44; Member since: 06 Nov 2013)

Cool some iphone guy is raving about nexus rather than his iphone , hands off to you for Atleast agreeing that I phone kinda sucks is a brave move my boy keep it up.

posted on 08 Nov 2013, 12:35

13. lifeyourlive (Posts: 126; Member since: 23 Aug 2013)

Batery is really bad, oppo N1 is the way!

posted on 08 Nov 2013, 08:11

10. scriptwriter (Posts: 396; Member since: 13 Nov 2012)

I knew this was going to happen. So got mine off contract, direct from Google. Arrived in 2 business days (even though ETA was today)

posted on 08 Nov 2013, 09:06 1

11. PapaSmurf (Posts: 10457; Member since: 14 May 2012)

N5 is going for over $500 for the 16GB... I actually seen an ad for $700. Talk about the highest resale value ever.

posted on 08 Nov 2013, 09:21

12. indianapple89 (Posts: 47; Member since: 28 Feb 2013)

Its one of the easiest ways to mint money I suppose...

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