[Nexus 4 General] draugaz:
It is not like LG just pockets all that markup they usually ask in retail. Normal retail devices pass through several intermediate layers (each with their own markup), they also pay various marketing expenses.

In case of N4 it simply skips all that distribution and marketing machinery, so it is only logical google doesn't pay for that. But LG also does not have any such expenses.

And if you look at the prices "at the factory gate", then there is certainly enough room for the usual LG markups. I would be very surprised if huge customers like ATT, VZW with their own distribution pay more than google does.

LG also was very careful to set their OptimusG and N4 apart. N4 has only 8mpx camera while OG has 13mpx. N4 has only 16G flash while OG has 32 + SD card. OG has LTE, N4 has no LTE.

So, the N4 simply can't be priced nowhere near the OG. Comparable HTC One X 16Gb currently sells only for like 70euros more (420eur) and this is after all that distribution and marketing overhead. And LG brand reputation here in europe never allowed them to charge the same prices as HTC or Samsung.

For example, in Germany any LG phone priced at 500eur simply has not a slightest chance. For example, their last flagship LG Optimus Speed (2X) (first dual-core mobile phone ever) did like this:

http://geizhals.at/de/?phist=605840&age=9999

And besides, N4 is not sold "cheap" anywhere LG has any significance. Google play store sells them only in few markets. For example, in Germany LG has essentially a "junk" status and OptimusG is not even offered. So N4 does is not a threat. And even if they start selling it, they can't realistically demand more than like 450euros, because for 500 you can already get Moto Razr HD with LTE and all the bells and whistles. Or SGS3 LTE with branding but without contract or simlock for 474eur http://www.amazon.de/dp/B009GEORSM

So, I don't think LG lose anything or that google is forced to subsidize.

It already is, for example, MediaMarkt is selling it for 400euros. You simply can't expect, that MM would sell to the enduser for the same price as the google play (360eur). For one, they don't order as much devices as google does. And they use at least some parts of the LG distribution which wants to be paid. And their margins are for sure much much bigger those of google.

You know, people come and go. In such a huge organisation you will certainly have heaps of execs with various experiences in their previous lives. It is just a question of their current entrepreneurial objectives.

But once again, I can assure you, google will do *anything* to keep the iritation of their OEM "friends" at the manageable levels. Which includes being careful with their retail ambitions, not to step on their OEM toes. This is why every Nexus was done by one of their OEMs and not by some contractor like Foxconn or Compal.

You will know for sure if Google suddenly decides to change their mind and start their fight for the market share.

---------- Post added at 10:56 PM ---------- Previous post was at 10:44 PM ----------

There is a fine line between being an experienced professional and prophet :)

A lot of companies routinely underestimate or overestimate their demand. Even certain iOutfit sometimes allegedly suffers from severe supply problems. In contrast to goole they can easily produce many millions of devices in advance and be sure they won't be left sitting on them.