Several blogs have been reporting my speculation on Nexus One pricing as a rumor. Which is okay, but I am only freely thinking what to expect Google will do about the pricing. What I think Google should do. I don’t have secret infos from Google insiders, at least not yet. Although I am sure Google insiders are monitoring what the blogosphere is talking about so if they see a lot of people getting excited about disruptive pricing and VOIP features, then it could well encourage them to actually really make the big announcements and make it happen at the launch.
My speculation is based on following:
1. Manufacture and Bill of Material of a 3.7″ AMOLED touch screen smartphone has been calculated by isupply and others to cost below $150 all inclusive when mass manufactured. Although an AMOLED WVGA screen is probably a bit more expensive than a 3.5″ 480×320 LCD screen. Manufacturers and resellers make very high profit margins when they sell unlocked smartphones at $400-500, and I think, those prices are only a deterrent to unlocked phones and to push consumers into signing $2500 2-year contracts for getting those phones.
2. My speculation is that when Google will be selling its own phone (even manufactured by HTC or other Smartphone manufacturers in Asia), my speculation is that Google does not need to profit on the hardware, but plans to profit over time on mobile ads and services.
3. Google does not own spectrum, yet my basic suggestion is that Google may be able to approach telecom carriers internationally and offer to buy Petabytes of bandwidth on 3G networks, at a given rate per GB, and my speculation is that 3G bandwidth data should definitely cost less than $10 or 5€ per GB. If Google is able to purchase 1 Petabyte of 3G data from a telecom carrier for $10 per GB, guaranteed best effort bandwidth not throttled for VOIP, then what would stop Google from offering 100MB free bandwidth per month to users of unlocked Android phones, to use for basically as much VOIP over 3G using Google Voice, Gmail, basic Gmaps and basic Web browsing as most users would need. Thus get an unlocked Android phone with a Google SIM card and get unlimited free VOIP and 100mb/month data for free on ad-supported Google services or purchase more data for a certain price for example $10 per GB to use whenever you want, not needed to be renewed each month. I am probably far over-estimating the cost of 3G data bandwidth, the price per GB is probably below 1€ per GB, unless telecom carriers just refuse the deal and that they wouldn’t accept to sell any 3G cellular bandwidth to Google.
I have been campaigning for free VOIP on WiFi and 3G for years, since I have been very active fanboy of all Archos Internet Tablets since the Archos PMA400 released in 2004 on my other site http://archosfans.com, where my hope has always been to some day have better telecom system that doesn’t try to sell you a $2500 2-year contract with a $150 smartphone. But instead move towards improving the smart device, implement better optimized software through Linux (Android enables that for the first time), larger higher resolution screens (4.8″ 800×480 like Archos 5 Internet Tablet is my favorite size and resolution), and also some day, make it possible for people to just buy the bandwidth that they need and not charge unreasonable prices anymore for voice and sms services.
Here are some of the sites that have been posting my speculation over the past couple of days:
http://www.reddit.com/r/technology/comments/aexhb/google_phone_199_without_contract99_for_google/ (1088+ comments!)
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[…] EDIT: Google has not confirmed any pricing for the Google Phone Nexus One. You can read my latest post backing up my speculations on what I expect Google will price it, what I think Google should price it: http://armdevices.net/2009/12/16/the-blogosphere-reports-my-nexus-one-pricing-speculation-as-fact/ […]
[…] I should buy one or wait for those Android phones to be available for less than $200 unlocked as I speculated that the price could have been for this […]