Nexus 4 - Google aggressive on price

mrochester

ringo_24601 wrote: »

What's interesting is how O2 is pricing it. They obviously can't make it too cheap - it's a 'flagship' phone on a par with the Samsung Galaxy S3 yet £200 cheaper. If they priced it £10 a month less on a contract - who in their right mind would get an S3 anymore?

Now, i suspect O2 would make far more money on an S3 than selling a Nexus 4.

So, you'll see O2, then probably vodaphone also, skewing the price of Nexus 4 on a contract well above the 'real' cost.

O2 will be treating it like any other device in that respect. We have to allow these companies to make a profit if we want them to continue improving their products and services.

[Deleted User]

mrochester wrote: »

O2 will be treating it like any other device in that respect. We have to allow these companies to make a profit if we want them to continue improving their products and services.

This isn't profits - it's about psychology and economics

mrochester

ringo_24601 wrote: »

This isn't profits - it's about psychology and economics

Do explain how!

[Deleted User]

mrochester wrote: »

Do explain how!

ok. Many people want 'the best phone'. They're also prepared to pay for it. I'm only discussing Android here; as the Android/Apple debate is too 'religious'

Currently, the best Android phones are the Samsung Galaxy S3 and the HTC One X+. The Nexus 4 is on a par, or maybe a bit above them in terms of performance.

Even though the Nexus 4 16GB is £130 cheaper £5.50 a month cheaper; they need to offer it at the same price as the other 'leaders' or they risk confusing consumers.

Consumers expect 'the best' to cost the most. They will be more likely to sell more Nexus 4 contracts if it is seen 'on a par' as the other leading phones - in terms of price.

mrochester

ringo_24601 wrote: »

ok. Many people want 'the best phone'. They're also prepared to pay for it. I'm only discussing Android here; as the Android/Apple debate is too 'religious'

Currently, the best Android phones are the Samsung Galaxy S3 and the HTC One X+. The Nexus 4 is on a par, or maybe a bit above them in terms of performance.

Even though the Nexus 4 16GB is £130 cheaper £5.50 a month cheaper; they need to offer it at the same price as the other 'leaders' or they risk confusing consumers.

Consumers expect 'the best' to cost the most. They will be more likely to sell more Nexus 4 contracts if it is seen 'on a par' as the other leading phones - in terms of price.

But that doesn't account for the vast number of sales at the low and mid-range. If every customers is looking for 'the best' and every customer thinks 'the best' = the most expensive, then only the most expensive phones would sell. But that's not the case at all.

[Deleted User]

Go read freakonomics and you'll understand

You can't sell a 'top end phone' at the price of the 'mid-end phone' or you'll confuse consumers and damage your sales. Look at the way Apple price the Ipad Mini (which is priced right between the ipad Touch and the more expensive bigger ipad)

mrochester

ringo_24601 wrote: »

Go read freakonomics and you'll understand

You can't sell a 'top end phone' at the price of the 'mid-end phone' or you'll confuse consumers and damage your sales. Look at the way Apple price the Ipad Mini (which is priced right between the ipad Touch and the more expensive bigger ipad)

So why is Google pricing their device at a point that'll 'confuse consumers'?

[Deleted User]

mrochester wrote: »

So why is Google pricing their device at a point that'll 'confuse consumers'?

Well, that is an interesting question. Why isn't their phone more expensive - when it definitely could be. It's a very interesting decision. Maybe its a big finger at Apple - selling a competing product for half the price.

Maybe its a sign of them expecting more people to buy a phone and a contract separately. I suspect their price isn't too far off the price that mobile networks buy the other phones at (so maybe my argument about O2 is actually wrong)

Anyway - i'm waiting to see how Vodaphone price it (since i need to move to a provider that can also supply 'signal boosting' technology for my backwater rural village). They should get it 30 days after O2 launch it

mrochester

ringo_24601 wrote: »

Well, that is an interesting question. Why isn't their phone more expensive - when it definitely could be. It's a very interesting decision. Maybe its a big finger at Apple - selling a competing product for half the price.

Maybe its a sign of them expecting more people to buy a phone and a contract separately. I suspect their price isn't too far off the price that mobile networks buy the other phones at (so maybe my argument about O2 is actually wrong)

Anyway - i'm waiting to see how Vodaphone price it (since i need to move to a provider that can also supply 'signal boosting' technology for my backwater rural village). They should get it 30 days after O2 launch it

It's a big finger to Google's partners, the very companies who have helped make Android the success that it is. Talk about stabbing those who have helped you in the back!

anandp

mrochester wrote: »

It's a big finger to Google's partners, the very companies who have helped make Android the success that it is. Talk about stabbing those who have helped you in the back!

Those other companies didn't do it for charity! Ever noticed that those very companies you're talking about aren't joining the debate against Google?

Yes their profit margins will be harmed, but will they go away completely - I doubt it. They'll still make a margin, but a smaller one.