A preliminary analysis of the components used to manufacture Google's Nexus One smartphone suggests that the Bill Of Materials (BOM) is $174.15 - compared to a retail price of $529, or at $179 with a two-year service contract from T-Mobile. This total comprises only hardware and component costs for the Nexus One itself and does not take into consideration other expenses such as manufacturing, software, box contents, accessories and royalties.
"With the Nexus One, Google has taken the most advanced features seen in recent smart phone designs and wrapped them up into a single sleek design," said Kevin Keller, senior analyst, competitive analysis, for iSuppli. "Items like the durable unibody construction, the blazingly fast Snapdragon baseband processor and the bright and sharp Active-Matrix Organic Light Emitting Diode (AM-OLED) display all have been seen in previous phones, but never before combined into a single design. This gives the Nexus One the most advanced features of any smart phone ever dissected by iSuppli's Teardown Analysis Service - a remarkable feat given the product's BOM is similar to comparable products introduced during the past year."
iSuppli will conduct a finalized and more detailed analysis later this month.
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