Google Inc's new Nexus One smartphone, which incorporates several of the latest smart-phone innovations in a single product and sells for $529 without a service plan, is built from components that cost about $174.15, according to a market report.
The hardware and component cost of the Nexus One manufactured by Taiwanese manufacturer of smartphones HTC Corp is about $174.15 minus other expenses such as manufacturing, software, box contents, accessories and royalties, according to a preliminary estimate from electronics market research firm iSuppli's 'teardown analysis'.
Google, which launched the Nexus One early this month, (See: Google unveils 'Nexus One' smartphone) is priced at a subsidised rate of $179 under a two-year contract with telecom carrier Deutsche Telekom's T-Mobile USA at the lower end and a steep $529 at the higher end if bought by a customer from Google's website.
The bill of materials (BOM) cited by iSuppli does not include other costs such as manufacturing, software, accessories and royalties, all of which are factored in when calculating gross profit margin on any product.
''With the Nexus One, Google has taken the most advanced features seen in recent smart phone designs and wrapped them up into a single sleek design,'' said Kevin Keller, senior analyst, competitive analysis, for iSuppli.
Items like the durable unibody construction, Qualcomm blazingly fast Snapdragon base-band processor and the bright and sharp 'active-matrix organic light emitting diode (AM-OLED) display, which have been seen in previous phones, but has never before combined into a single design.