On 03/08/2013 08:47 AM, Rich Pieri wrote:
On Thu, 7 Mar 2013 23:22:21 -0500
Brendan Kidwell <bren...@glump.net> wrote:
Do we know they're really being subsidized? Or are they just cheap?
We don't "know" in the sense that Google hasn't stated as such. "Just
cheap", however, isn't the determining factor. Compare. Nexus 4, made
by LG, costs $299 without a contract. The LG Optimus G, almost exactly
the same device, is $549 without a contract. Nearly identical hardware
and operating system and no Windows tax, but a retail cost difference
of $150.
Price is a function of the market, not cost. (Econ 101). LG and Samsung
spend a lot of marketing dollars to differentiate their productsthus
manipulating the demand curve. Additionally, AT&T and Verizon push those
products. Another reason a company might want to sell at a lower price
is to get the product into the market. One drawback with the Nexus 4 is
that you cannot get the higher 4G and LTE speeds in the US. (Actually,
from what I have read, they have an LTE radio on band 4, but band 4 LTE
is not used by the major carriers other than T-Mobile 3G. The Cnet
article tells alot :
http://news.cnet.com/8301-1035_3-57554574-94/lg-nexus-4-sort-of-has-4g-lte/
I will stick with contract phone for a while.
--
Jerry Feldman <g...@blu.org>
Boston Linux and Unix
PGP key id:3BC1EB90
PGP Key fingerprint: 49E2 C52A FC5A A31F 8D66 C0AF 7CEA 30FC 3BC1 EB90
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