pRoDucT Study
Breaking It Down:
Nexus One Smartphone
The Google Nexus One was released on January 5th among a swirl of rumors and a buzz of anticipation. Technology buffs and gizmo junkies
alike were practically salivating at the prospect of getting their hands on the new phone with Android 2.1 technology and Snapdragon CPU.
iSuppli recently conducted a breakdown study of the phone’s material cost and concluded with the cost of US$174.15. This price, when com-
pared to the fact that it’s being retailed at US$530 (without a service plan) is impressive, since it has “the most advanced features of any smart
phone ever dissected” by iSuppli. The iPhone 3GS, which is a less advanced piece of hardware, had a material cost of $178.96 when iSuppli
did an analysis last June. This price however, does not take into consideration other costs involved in manufacturing, logistics or packaging.
Here’s a look at other pricing factors to consider in the Nexus’s journey from factory to doorstep.
MADE IN TAIWAN
The Nexus is manufactured by HTC in Taiwan. According
to an anonymous source, the margin of HTC for making
the phone is over 30%. “The Nexus One is a kind of ODM
[original design manufactured] model rather than HTC
branded,” he says. “However, I don’t think HTC would ac-
cept only manufacturing cost without any margin.”
Taiwan
ONLY 80,000 UNITS
SOLD IN 1 MONTH!
Google only sold 80,000 Nexus
One mobile phones in its first
Google Nexus Phone Stats
month. In comparison, the Mo-
torola Droid sold 525,000 units in
Height: 119mm - Width: 59 8mm - Depth:11 5mm
its first month and the iPhone 3GS
(slightly thinner than the iPhone 3GS at 12 3 mm)
topped the charts selling 1.6 mil-
Weight: 130 grams w/battery (vs iPhone 135 grams)
lion in its first week.
32 MARCH/APRIL 2010 www.supplychains.com
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