Sam Oliver
After conducting a teardown of the Nexus One, iSuppli has estimated taht the cost of parts in the handset is $174.15. The dollar amount includes hardware and component costs, but does not take into consideration expenses like manufacturing, software, box contents, accessories and royalties.
"Items like the durable unibody construction, the blazingly fast Snapdragon baseband processor and the bright and sharp Active-Matrix Organic Light Emitting Diode (AM-OLED) display all have been seen in previous phones, but never before combined into a single design," said Kevin Keller, senior analyst of competitive analysis for iSuppli.
"This gives the Nexus One the most advanced features of any smart phone ever dissected by iSuppli’s Teardown Analysis Service—a remarkable feat given the product’s BOM is similar to comparable products introduced during the past year."
The estimate is about on par with the costs associated with the iPhone 3GS from a similar review last year. iSuppli estimated that the 16GB iPhone 3GS cost $178.96, slightly higher than the $174.33 in parts found in the 8GB iPhone 3G.
The Nexus One's Snapdragon processor, which allows 720p video playback, is estimated to cost $30.50, making it the most expensive component of the phone. The 3.7-inch AM-OLED display is estimated at $23.70. The phone also has 512MB of DDR DRAM and 512MB of NAND flash memory, along with a 4GB MicroSD card. The memory, supplied by Samsung, is said to cost $20.40.
Source: iSuppli Corp., Jan. 2010
Google's handset, built by HTC, can be purchased direct from the company unlocked and contract-free for $529. It can be bought subsidized by T-Mobile for new customers with a two-year contract for $179. A CDMA version of the handset will also be available for Verizon this spring.
Last week, a teardown of the Nexus One found the 0.45-inch-thick device was easy to disassemble. It has a removable battery, features 802.11n Wi-Fi, and was shown to be "colorful" on the inside.
Following its launch last week, Google faced some criticism from customers. Support is not available by phone, only via e-mail. In addition, some have complained that they can't find answers for support issues from Google, and that they have been passed back and forth between the search giant, HTC and T-Mobile for assistance.
For more on the Nexus One and how it stacks up against Apple's iPhone 3GS, see an in-depth comparison from AppleInsider.
Wesley Hilliard
AppleInsider Staff
Andrew Orr
Amber Neely
William Gallagher
45 Comments
When this site became GoogleInsider?
Hmm, iPhone $600 - $179 = $421
Lets assume Apple is figuring on replacing each iPhone once under warranty plus shipping, so that's $200/$200 and the last $200 is profit.
So if the iPhone works correctly under warranty, that's $400 profit.
Plus the kickback from the carriers...
Plus the kickback from the App Store and iTunes...Nice margins and multiple income streams there Apple...I'm not playing, because outside of a few apps used occasionally, the iPhone is mostly a gaming device as proven by the TOP APPS.
The way I figured it, a iPhone with contract costs as much as a MacBook Pro MORE than a regular cell phone with a $30 a month contract.I guess it's assumed we should give up one for the other, and a lot of people are doing just that.
I'm not playing, because outside of a few apps used occasionally, the iPhone is mostly a gaming device as proven by the TOP APPS.
The way I figured it, a iPhone with contract costs as much as a MacBook Pro MORE than a regular cell phone with a $30 a month contract.
your argument leads me to believe you base your purchasing decisions on the cost of the device. naturally there is nothing wrong with that. however cost alone is not the determining factor for most people who buy apple products; apple products are luxury devices, i expect that most people who visit these forums are rich enough to pay extra for prestige or pleasure.
on another note, the iphone is obviously implemented for various uses and tasks, i'm sure it's used for gaming by some people, for me however it is a mobile office while on tour and taking care of business; i have never played a single game on this device in the 2 years i've had it, nor do most of the people i know who use it. ie: app-store stats are not automatically an indication of what the iphone is being used for. i use it all day every day - for office work, and have only downloaded about 5 apps in 2 years, my needs are covered by mail, ical, safari, maps etc. no need for a any more.
This article is comparing current N1 parts costs with last year's 3Gs. Don't the costs of the parts decrease over time as manufacturing methods are made more efficient and additional suppliers come online? I'm very curious what the CURRENT cost to manufacture a 3Gs is. Anyone have any info on this?
Top Apps prove that games happen to be popular, not that the iPhone is a "gaming device." The iPhone also has the highest-quality apps in each class across the board, from IM clients to utilities, etc.
However, the iPhone is the premiere device for mobile (smartphone) gaming. This is because it has the best games. Great games for any device will always be popular, regardless of whatever else the device does. If a device has good games for it, games will always feature very high on the popularity lists. You can have several great VNC apps or amazing navigation apps, but games tend to have mass appeal.
The iPhone is an everything device. It does a variety of things and it does most of them quite well. The popularity of games, however, does not mean it is a "gaming device" (whatever that means) as opposed to a (fill in the blank) device.