Google devices

High end devices have the best margin but this is eroded by network sale agreements quite considerably. Sim free they sell for bananas money compared to the cost to networks as you'd expect. There's no way a nexus 5 is sold at a loss considering it's price but it's closer than most to the line.

The line actually reverses at the very cheapest end of the market,
 
You can't compare directly as they have different business models. Remember Google gives Android away for free to all the other manufacturers

Apple look to make money on the hardware and selling you apps/music afterwards. Plus there's the "Apple Premium" markup too.

Google make almost all their money in advertising, so they want to tie you to Google services that they can use to target ads. With as many people on Android as possible through cheap Nexus 5's and giving it away to the other phone manufcaturers they have a massive audience locked in.

It will be interesting to see what the endgame for the Google self-driving car is. Inevitably it will involve advertising in some way.
 
thepharcyde said:
Do Google sell their hardware at a loss?

I'm dumbfounded that the iPhone 5s costs double in comparison for lesser spec vs the Nexus 5?
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do google sell their hardware at a loss - no, it's at cost or very slightly over it.

do google lose money on the nexus (and other android) devices - no, they get their money back from 'data', they get your search info, your location (if enabled) and other stuff which they can use to get advertisers to use them etc.

Apple doesn't have this source of income so they make their money by overpricing their items and selling as a 'premium' brand.... which google can then get their advertising data on as people add google apps to their iphone etc.
 
thepharcyde said:
They don't spend it though, look at their accounts.
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they do spend it, it's just that they make so much profit it obliterates their spending.

apple adverts are everywhere. plus with viral marketing these days of people on facebook, etc showing off their new iphones, etc or talking about them, it's a vicious cycle which will never be broken.

all the sheep will continue to see apple phones as being superior and the god of all phones.

don't get me wrong i would buy and iphone if it was 1/3rd of the price, but it isn't so i'm not going to touch one because it's so horribly overpriced for what you get compared to a nexus device or even budget devices from huwaei or ZTE for less than £150.
 
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