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They can make a capable and well specced Nexus 4 for $349, but they're not making any money off of it, which doesn't make it economically sustainable in the lon
by kunaalarya 14y ago
They can make a capable and well specced Nexus 4 for $349, but they're not making any money off of it, which doesn't make it economically sustainable in the long term. It's the same thing with the Nexus tablets. They're selling them so cheap so they can gain marketshare. If it picks up and starts selling like hotcakes, they'll have to take it off the market before every Android manufacturer starts looking for other platforms because there would be no reason for them to sell phones at a loss.
Source: http://www.knowyourmobile.com/blog/1666557/google_said_to_be_taking_a_237_hit_on_every_nexus_4_it_sells.html http://www.knowyourmobile.com/blog/1666557/google_said_to_be...
- sami36 14y agoI agree, but only partially. Many companies thrive on 10% or less operating margins. Amazon, Walmart come to mind. I'm not saying AAPL shouldn't make a profit, I'm saying it's going to have to come down a little. Now, as far as GOOG selling their tables at cost. It's because Google is not a hardware company & does not expect their margins to come from devices. If you step back a little to contemplate the entirety of their business plan, you'll see that the see devices as conduits for their services & that's where their profits comes from, ad impressions.So, the fact they're selling their devices to break-even is only a piece of the puzzle.