Monday, November 11, 2013

Google emulates the Amazon model with Nexus 5 - Intereconomía

Google is selling its latest handset manufactured by LG for 50 pounds (59.8 euros) less than other retailers you can buy, at least in the UK, where the information has been uncovered. Through Google Play Store, Nexus 5 shown with a price of 300 pounds (357 euros compared to 349 euros by which is sold in Spain).

is unknown how much Google pays for each unit of Nexus 5 to manufacturer LG. The Korean company and Google have a contract by which they agreed to manufacture and sell the new Nexus 5, put on sale on 31 October.

LG, Google sell through a device is a form of self-promotion and even to sell more devices . Google, meanwhile, popularized its ecosystem and not look so much selling the device or profit.

“Although it is unlikely that Google sells the Nexus devices 5 with margin losses, it is likely that sold at cost or with very little room “, said mobile analyst with the research firm CCS Insight, Ben Wood.

Nexus 5 is selling at a good pace on Google Play, at least, the few available units are flying. This case happened with Nexus 4 and it was almost impossible to find. According to the filtered data, Google will sell between 1 and 2 million Nexus 5, but “will be purchased by key people”.

In any case, Google is selling cheaper than that charged to the South Korean outlets. As published by The Guardian, LG sell those devices to retail stores 50 pounds more expensive that what Google does.

When it launched its Nexus devices manufactured by third parties, Google said it wanted to bring the latest technology to the whole world through affordable . The Nexus 4 and its successor, the Nexus 5 are smartphones with great features compared to other smartphones in its price range. But to think that the search is not carried is inconceivable benefits.

This movement resembles what the big online retailer, Amazon made its Kindle readers . The e-Readers Amazon traded at a really low price compared to their counterparts in other brands, which enabled Kindle became the most used e-Reader, which still remain.

Amazon

reasons to lower both your digital reader was to popularize this type of reading, obtaining a broad customer base store for digital books and literature. Therefore, although he said benefits readers, these contained all the facilities to buy books in digital store, so eventually wins.

Google seems to be following the same pattern, which ensures a more competitive price to cut out the middleman and promotes the expansion of Android , your operating system, and therefore also purchase payment Apps Store in Google Play.

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