Nexus One: Cheaper Than an iPhone Inside


The Nexus is raising quite the ruckus. From the squabble over the device's name to complaints over poor 3G performance and subpar support, Google's first foray into phone sales is taking some unfortunate twists.

One can only hope Google and T-Mobile will get to the bottom of the problems (Google, for its part, has said it's "committed to sorting out the few kinks" in its new systems). In the meantime, we can take a closer look at what's inside the Nexus One and what your hard-earned money is actually buying.

Inside Google's Nexus One

The Nexus One, manufactured by HTC, costs $529 unlocked or $179 with a two-year T-Mobile contract. The phone itself, according to a new analysis, actually contains about $174 worth of hardware -- five bucks less than the iPhone 3GS.

The analysis is by a company called iSuppli. It broke down all of the phone's components to estimate the "bill of materials," or total hardware cost. The estimate doesn't include manufacturing expenses, nor does it take into account things like packaging, accessories, and royalties. (It also, as far as I know, does not apply to those weird supersized versions of the phone.)

(click on image above to enlarge)

Not surprisingly, the Nexus One's 1 GHz Snapdragon processor is its most expensive part, followed by the OLED display. Here's the breakdown, according to iSuppli:

  • Processor: $30.50
  • Display: $23.50
  • Memory: $20.40
  • Touchscreen assembly: $17.50
  • Camera: $12.50
  • MicroSD Card: $8.50
  • Bluetooth/wLAN: $8.20
  • Battery: $5.25

The rest of the cost is taken up by parts such as electrical components, power management technology, and other mechanical hardware.

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