LG and Google's pricing of the Nexus 4 at £239 for 8gb and £279 for 16gb is breathtaking value for consumers and has frankly blown me away, but it begs the question; why can't other manufacturers hit this price point?
Google may well be selling this whole Nexus line at cost, but when you consider both the Samsung Galaxy S3 and the HTC One X had RRPs of closer to £500 at launch you have to ask the question why? Especially as the spec of the Nexus 4 is near as damn it the same as those two flagships?
Has the price of components come down that much in 12 months? Or have Samsung and HTC been walking away with £200 of profit on each phone for the last year? And mugs like us have been boosting their balance sheets?
This time last year, the Samsung Galaxy Nexus was another £499 phone, I know because I bought one at that. :( But Google are now somehow able to sell the Nexus 4 at half the price.
So what is the fallout from Google's new pricing? Will everyone else have to follow suit?
Have LG shot themselves in the foot? Who is going to buy the Optimus G now? 1) at a price more than the N4 and 2) with a bunch of LG bloatware/skin on it? Or any other LG phone for that matter?
Where does this leave the likes of ZTE and Huawei? They have been trying their damndest to produce cheap, but high end specs with the likes of the Grand X and Ascend D quad XL, but now those devices are right in the Nexus 4 price range. Surely a no brainer to go for the N4?
Not to mention the plethora of imports that we've been covering in 'Chinese Import Device of the Week'. The highly coveted Xiaomi Mi-Two is due to launch this week at £229, but why would you now import one of these when you can get the Nexus 4 for the same price and have no import/warranty/support issues or worries?
I'm wondering if the whole landscape of phone pricing is about to change? When you look at the spec sheet of the Nexus 4, realistically, what more can you get out a phone? So is £279 the new £499?
In the next 6 months can you really see Sony, HTC and Samsung touting their next flagships or high end devices at £450/£499? Will they really have that much better hardware that what LG have produced on the Nexus 4 to justify such pricing?
And what effect could this have on contract pricing? There is no way the Nexus 4 is a £31/month phone like Carphone Warehouse was advertising it at the other day. And O2 have pencilled it in at £36/month!!! Surely a lower unit cost price will bring down contract prices?
£10/month sim only and a £239 Nexus 4 looks the way forward to me.
Interesting times ahead and i've not even mentioned the £529 iPhone 5 and £450 Lumia 920. ;)
So you've got upto £300 to spend on your next phone, how do you spend it?
Nexus 4, ZTE Grand X, Ascend D quad XL, Xiaomi Mi-Two, Motorola RAZRi, something else?
What you going for and why?