Google Nexus 4 smartphone hits NZ

logic. The price is obvious enough. It's the standard price as it would be without google subsidy. If it were subsidised here we could expect around the $500 mark.

Google wont subsidise the device here because their movies/music/book service are where they make the real money on this. Since we don't get those here, they'd be making a loss. That and they are in no rush to release the movies music and books here any time soon because our data speed, prices and coverage are still poor compared to most developed countries and would stunt the service.

It has nothing to do with tax or shipping rates. It's Google being sensible.
Posted by rob at 20:02:48 on December 9, 2012

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Overpriced Considering the Nexus 7 is selling at Dick Smith and JB Hifi for around $350 i think this is a huge rip off. I would expect the phone to maybe cost around $150 more than the Google online store but not $799.
Posted by Anonymous at 20:06:05 on December 8, 2012

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I expected better from 2Degrees 2Degrees has always impressed me. They've always delivered good value.

If 2degrees is getting the phone from LG, then they're probably being over charged. I find it hard to believe that they've bumped up the price so much on their own.

This kind of over pricing is what I would expect from the likes of Vodafone or Telecom, but not 2degrees.

If someone from 2degrees is reading this, your customers want to know the reason for the huge price. If its not in your control, be honest and open about it - that is what we expect from you. If it is under your control, then you have a much bigger problem than an over priced phone on your hands : losing the trust of your customers.

Posted by Carleeto at 14:33:56 on December 7, 2012

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Think about it You cannot compare Google selling on-line vs traditional channels. Let's use a hypothetical example of phone that costs $200 from someone like LG or Samsung - don't even worry about exchange rates:

$200 - Google standard price
$150 - Google order 1m+ units so get a discount
$150 - Google sells it from their webstore at no margin
$140 - Google even goes a bit radical and decides to lose $10 per unit, entirely possible

$200 - Carrier standard price
$220 - with handling & distribution costs
$280 - with 20% standard margin for channels (margin is off the sell price NOT mark-up - very diff things).

So very easy to see how price becomes double, and perhaps exchange rates and GST add a bit too.

Truth is that Google selling outright is good for Consumers, but killing everyone else who lives on hardware margins. That's what Google do - destroy value in markets for legacy players, just ask the news papers.

Does this matter? Depends if there will be anyone left to make the devices...

Posted by Bob at 22:13:11 on December 6, 2012

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