Nexus 5 Price?

  • 2
  • Question
  • Updated 5 years ago
  • Answered
Google Play - Nexus 5 $350
Koodo - Nexus 5 $500

Why Koodo is charging $150 dollars more for the same phone? If anything it should be sold for less.
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Oscar Bazante

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  • frustrated

Posted 5 years ago

  • 2
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Timo Tuokkola, Mobile Master

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Seriously?

http://community.koodomobile.com/kood...

This topic has been done to death.
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Chris Petersens

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Just buy it from google then. :-)
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Oscar Bazante

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Why should I buy from Google? Koodo should sell it for $350 and then apply the TABs.
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Paul Deschamps, Mobile Master

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Google is selling it at a loss because they make their money off advertising, if Koodo sold it at the same loss then youd basically be getting up to 6 months of free service to make up for that loss which doesn't make much business sense does it.
Also it's $350 + 2 day shipping is another like $40 so it's actually $390 or so from the playstore and you still have to wait those 2 days which is actually your waiting about a month for it to ship right now from the playstore instead of getting it right away. So if you want it immediately then you'll pay the extra $100 for immediate satisfaction.
It's not just Koodo all Carriers are selling it for $500
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Ivan, Mobile Master

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@Oscar: You have a choice of a lower price or getting a subsidy. Unfortunately, you can't have both. It's been reported that LG is charging more wholesale per unit for resellers (not including Google) than Google is charging at the play store. Resellers (carriers included) aren't going to sell a brand new phone at a loss. It would make no business sense.

@Paul: Google's not selling anything at a loss, and I don't know exactly why this myth keeps getting perpetuated. Nobody's done a cost teardown yet, but considering that an iPhone 5S costs roughly $200 to produce, I really doubt that the N5 costs more than $350. Yes, Apple has better buying power but I really doubt that the N5 is more than 75% more expensive to produce than a 5S.

The 16 GB is just under $415 total from the Play Store. One from Koodo will set you back $565 (using ON HST). So, it's an extra $150, not $100. You can't add taxes and shipping to the Play Store unit but omit the tax from the Koodo purchase.
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Paul Deschamps, Mobile Master

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Google didn't make the phone LG does and they have to pay LG to build their vision. Tear down cost means nothing because that's not the only cost that goes into making a phone Ivan, there's research and development of building the phone and software, the actual labour of building the phone, tech support costs, advertising costs, updating the software cost & more. You can't look at the price of components and think that's how much it cost to build the phone there's a bunch of other things then just buying the parts.
Google I shouldn't say is selling it for a loss they are selling it at cost
(Edited)
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Josh

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Because its cheaper from google. Get a 0 dollar phone from koodo by putting it on a tab, sell the phone on kijiji, and then use the money to buy a nexus from the play store.
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Paul Deschamps, Mobile Master

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You can do that sure once you take the phone home it's yours to do what you please with. Keep in mind if you do that you'll be getting a N5 from Google in about a month right now. Where from Koodo you get the phone immediately and you don't have to get a phone then sell it then wait that few weeks and still owe money on the tab. As its guaranteed clear in 24 months you might as well just get the phone you want
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Timo Tuokkola, Mobile Master

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Just wanted to point out another reason all carriers are selling the nexus 5 for the same price:
Carriers make very little money on the sale of phones. Their entire business model is built around making money from monthly plans. Since the entire nexus line comes unlocked, if one company sells it for less, rather than profiting by drawing in new subscribers they find their stock quickly depleted by customers who buy the phone to use with the competition. This is exactly what happened last year when koodo started offering the nexus 4-a huge wave of people wanting to buy the phone with no intention of ever activating an account with koodo.
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Erwin

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Oscar,

Just to let you know, Google also charge shipping and handling. When I bought my Nexus 4, I paid nearly $30 for shipping and handling. Also if you buy it, you will have to wait up to 3 weeks for it to arrive in your doorstep. While in a store, you can buy your phone and use it right away. Practically, you are buying extra for convenience.
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Chrome1234

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$150 + tax convenience charge LOL

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