iSuppli's teardown reveals a $174.15 cost on the Nexus One

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.

HTC Nexus One Specifications | Hands-on

source: iSuppli via Gizmodo



1. htc_prep

Posts: 303; Member since: Oct 09, 2009

30.50 for the processor and 23 and change for the screen if i could snatch those at those priced id find some way to integrate it into my current phone. lol

2. oddmanout

Posts: 443; Member since: May 22, 2009

so the actual price of its hardware is less than 200? so i'm assuming the other $300 is just coming from production and to android/google for the software? thats a nice piece of change. I always wondered why cellphones cost so much... it would be nice if they would get a little more reasonable with the prices though.

3. endokun83

Posts: 13; Member since: Aug 09, 2009

Keep in mind that R&D cost much more than actual production cost, and of course packaging, assembling, workers, and everything else. I actually thing the MSRP pricing is quite reasonable, maybe even low balled.

4. remixfa

Posts: 14605; Member since: Dec 19, 2008

this article is very deceiving. it only tells you how much it costs to manufacture off the assembly line. Dont think the rest is profit, otherwise you are missing the rest of the picture. you have to pay someone to develop the phone, set up the mfctr process, manage, clean toilets, utility bills, ect. All that is built into the actual retail price as well. add in that and you are probably looking at 400-475 ACTUAL cost. of course, thats just a guestimate, but i doubt its far off.

5. mobilemike11

Posts: 16; Member since: Jan 09, 2010

What do you know? A phone costing that much to make! You wonder why the manufacturer must charge cell providers over 400 dollars for each phone. Besides, you don't know how much was spent by google/htc on advertising, r&d, etc. It's is so nice that someone has finally shown consumers that phones are NOT CHEAP TO MAKE!!!!

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