If the internets are to be believed, Google is setting pricing on their HTC built new Nexus One Android flagship smartphone at $529.99 unlocked, or $179.99 if you take it alongside a 2-year, $80 a month T-Mobile contract. Here are the deets:
Now the original iPhone 2G sold for $600, locked on a 2-year AT&T contract. The current iPhone 3GS 16GB sells for $199 + ~$450 in carrier subsidy = ~$649 (it's currently sold unlocked by store.apple.com/hk for about $695). Nexus One has higher, presumably pricier specs, so is Google eating their profit margins, or is their massive advertising-based revenue model more than going to make up the difference?
No doubt the unlocked, unsubsidized sales model appeals to us geeks (
it tempts me!) but will mainstream consumers go for it? Nokia hasn't had luck with that in North America. Could Google do better? And would you like Apple to follow suit?