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Nexus One Costs $174.15 In Materials

You know what would be fun, if you combined the Nexus One teardown pictures along with the just released Nexus One bill of materials list! Okay, maybe not. But if you were wondering how much the Nexus One cost in materials, and we know you guys have been just dying to know, iSuppli just did their analysis on it and came up with $174.15. Most expensive was the $30.50 1GHz Snapdragon Processor followed by the AMOLED display and Samsung memory ($23.50 & $20.40, respectively).

Feel free to hit the link to see the full list of the Nexus One bill of materials!


  • Yeah, but those costs don't include labor to build the phone. The price of the OS and the price of the software. Plus the price for retailers to make $$$ after buying wholesale.
  • There's no labor to build the phone, it's all done by machines.
  • But the machines have to bought and maintained.
  • Yeah, the machines have already been bought by HTC to make phones...
    The OS and software are already owned by Google so no cost there...
    And profit is only an issue with T-mobile since they offer the phone subsidized. Google is selling the phone on their website, so they make whatever the charge over the mark up price. I'm really not seeing why the phone is $530...
  • What about the hours of research and development on the operating system and phone, just because its already made doesn't mean the OS is free and also someone was paid to design the phone and figure out all of the specs. in addition, like all other things, the price will go down in a couple of months once all the hype is down, their is less demand, and all of their costs have been paid off. Lastly, the price isn't too much when u consider a cheap flip phone can be about $300 without a contract
  • Wow, really? You can't see why it's so expensive after the parts? There are a ton of costs that aren't just the parts - R&D, shipping, support, tax, payroll, just to name a few! This is true with all pieces of hardware. There are even video game console makers that had to take a loss when selling their hardware, so there would be people to buy the games. Historically, profits on hardware are pretty thin.
  • So, who's going to buy these materials and make their own Nexus One for sale for $200?
  • I'd be amazed if there is any electronic device that costs only about the cost of its materials...
  • it says 600mhz processor. Isnt the N1 a snapdragon 1ghz?
  • lol forget it, saw it
  • this is totally misleading to anyone that doesnt understand business. And by some of the posts, my point has already been proven. This grocery list and price is only for the hardware. It does not take in the hundreds/thousands of development hours by high paid engineers, production facility costs, utilities, maintenance, amoritization of the equipment used to manufacture, or even a labor-hour of a single person involved. There is easily another 200+ tacked on for those costs. Expect Google/HTCs costs to be around 400-500ish a unit when you factor in EVERYTHING including an average 8% profit. Its pure conjecture on my part, but its a heck of a lot more accurate than someone thinking it costs $175 and thats it. LOL And yes, when a phone company (vzw, att, tmobile , ect) sells you a phone at "full retail" That means the "full retail value".. not what they paid for it. Normally they dont make much, but they do make a few bucks off that "full retail" Robots may make the phone.. but someone had to buy the robots, maintain the robots, program the robots, design the phone, clean the toilets, pay the utilities, ect ect ect ect. There is a lot that goes into the phone's cost other than parts.
  • good to know
    any electrical factory can now buy robots to assemble those pieces.
    let's see who's gonna lower the price.
  • u know what, i'd actually try to assemble it myself
  • This just goes to show that Google could sell it at $200 and still not lose out too much, but would do a huge part in promoting the Android platform. They should think about how MS & Sony subsidize hardware game consoles and make the bulk of the money in software sales, which seems to jibe with Google's business model.