Google Nexus 4
was wrong. Not from the point of view of those who were able to buy a large terminal half the expected price that matched full. But from the moment we introduced a distortion in the market and, above all, in its ecosystem of manufacturers who suddenly looked like Google was paying a party with which they had to compete.
A few daysfellow Android wondered why the Nexus range has revolutionized the prices and found the S4, the One or the same LG Optimus G (the latter considerably cheaper) in the same line as before Nexus 4. My answer to this question is clear: there a business model that sustains subsidize the smartphone to the point of offering almost at cost price.
Earn money selling phones
be recalled that only three (actually two) mobile manufacturers made money until recently, and only one – Samsung – from Android handsets. Not that we are in a scenario where there are many actors overwhelmingly margins enjoying a sort of uncompetitive oligopoly is that the market has become very tough, Apple is still doing very well and to large manufacturers like Nokia and Blackberry lead many years of suffering.
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On the other hand, also remember the “vision” they had in Google back in 2006. Her then CEO , Erich Schmidt, noted that mobile would become free by a grant from advertising . Seven years later not only are not there but that scenario seems highly unlikely even if we add the income that can be obtained from the sale of content and applications.
Thatwho committed subsidize more hardware and have low margins – Amazon – is thinking more of a set top box in a cell only reinforces the telephony business still selling hardware, which is latent in the balance between Google, Android and manufacturers.
LG and its assault on the high
An interesting point is that Nexus 4 gave something important to LG told the world they were able to make a great high-end terminal, competitive with Sony, HTC and Samsung. LG takes a couple of years growing from the input range and a half, with best figures ever thanks to a good balance quality / price.
Now it was the assault on the high end and this is where Nexus is not so good news for them. Both the analysis of the LG Optimus G as in the comments comes up again and again as an inescapable shadow. The price that prevailed in the market has been internalized by more advanced users (read communities like Engadget and the like) and is the brand that game more against him: the Xperia Z, the HTC One or Samsung Galaxy S4 are perceived as” something else “, the LG Optimus is” too close “.
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In any case, I think LG has some solutions to this situation. On the one hand this franchise terminal will help you sell more in the midrange, the other operators can do their job with good deals for a terminal as the Optimus G (which continues to be quite attractive, I take a couple of days testing and I’m enjoying it a lot, even give a little more notice than it appears in our analysis) … and would have the shadow of the Nexus 4 and its price will be fading as time passes and specifications remain behind.
Nexus 5, how sostenella or enmedalla?
And now the question that many ask, he return to subsidize Google Nexus 5? Server is pretty skeptical, if I had to bet I would do something like what was done with Nexus 4 will not be repeated and if they do, they distributed mainly in countries with a high share of Apple, not so much in Spain and similar.
Why? As we said at the beginning, Google has made a mistake regarding the ecosystem. Who is involved – LG – is it the taint of having to compete with itself but much cheaper, for the rest is but a brutal competition for who also has control of Android. With all that what is created is a brutal incentive for Samsung, Sony and HTC class=”caps”> redouble efforts with other platforms.
Soon there willGoogle I / O and Engadget will be there, see if they surprise us with some unexpected movement. Because, in addition to Google and Motorola still has some will to do it?
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