From Reuters
Google Inc's new Nexus One smartphone, which retails for $529 without a service plan, is built from components that cost about $174, according to a research report.
But analysts said the big gap between the components' costs and the phone's price tag did not necessarily mean the Internet giant was making a hefty profit, since the retail price includes expenses such as licensing fees and marketing costs.
"You can't base margins off of costs alone," said Canaccord Adams analyst Peter Misek, noting that a variety of expenses are not reflected in so-called teardown reports, which dissect an electronics device and take inventory of the various parts.
Google began selling the Nexus One, which is made by HTC Corp, on its website last week, its first foray into selling electronics devices directly to consumers. The retail price if $529, but if a buyer agrees to a two-year contract with Deutsche Telekom's T-Mobile USA, the carrier will subsidize the phone and it costs only $179.
Read more about the real cost of the Google Nexus One phone here.
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