Linked by Thom Holwerda on Mon 29th Oct 2012 18:14 UTC
Google While Microsoft is unveiling all about Windows Phone 8, Google ruined the party a little bit by 'leaking' all about Android 4.2, the Nexus 10 tablet, and the new Nexus phone, the LG Nexus 4. There's some pretty awesome stuff in here from Google - except for the fact the devices themselves are kind of ugly.
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RE[6]: Nexus 4
by cdude on Tue 30th Oct 2012 19:14 UTC in reply to "RE[5]: Nexus 4"
cdude
Member since:
2008-09-21

This isn't about noname brands. Are you aware that the iPhone 5 is $185 in material? The by far biggest chunk that increases the end-user price is neither QA nor sallery nor anything else (at the manufactor side - hey, foxconn, cheaper then cheap) that contributes to the quality of the product, its all the R&D and serviced that makes the final product + profit. The reason why iPhone is perceived as good quality is the overall product, design, software and services. Thats why it sells and why the high profit margins and R&D investment are possible. Assembling the hardware together id by far the lowest contributor to quality. But yes, every of that components can turn a otherwise good product bad.

Edited 2012-10-30 19:25 UTC

Reply Parent Score: 2

RE[7]: Nexus 4
by leos on Tue 30th Oct 2012 19:52 in reply to "RE[6]: Nexus 4"
leos Member since:
2005-09-21

This isn't about noname brands. Are you aware that the iPhone 5 is $185 in material? The by far biggest chunk that increases the end-user price is neither QA nor sallery nor anything else (at the manufactor side - hey, foxconn, cheaper then cheap) that contributes to the quality of the product, its all the R&D and serviced that makes the final product + profit. The reason why iPhone is perceived as good quality is the overall product, design, software and services. Thats why it sells and why the high profit margins and R&D investment are possible. Assembling the hardware together id by far the lowest contributor to quality. But yes, every of that components can turn a otherwise good product bad.


I completely agree with you, but I think it makes my point. With Nexus devices squeezing margins to just over cost to produce, then they are relying on covering their R&D costs in other ways (post-purchase advertising revenue).

Hence the poor design or quality control in no-name devices. They are covering their cost to manufacture, but can't afford to spend any money on QA or integration work. Sure you can get a tablet for $100, but the overall quality will be pretty miserable, even if the build quality itself is relatively close to the more expensive devices, there will be issues with software integration, or drivers, or updates, etc.

Reply Parent Score: 2

RE[8]: Nexus 4
by cdude on Wed 31st Oct 2012 06:49 in reply to "RE[7]: Nexus 4"
cdude Member since:
2008-09-21

For me it sounds like you assume noname == Nexus 4 == bad quality cause they (Google) has a rather low margin. I strongly disagree with that logic chain.

Fact is Google is making money by making Android the #1 and having fast majority of customers (user stay customers cause of the service-story afterwards) using there door to the internet. They make money and the strategy works out well what is what counts (for google). Sure they could make more by increasing the profit margin for the hardware but this could (and would) mean lesser market share and hence lesser ad- and services-income, lesser customers for there core business. This is not google's business model. Its not there target to make money by selling devices, unlike Apple, but by being everybodys door to the internet, to there services.

Your logic that the quality is more miserable if the end-uder price is lower is just flawed. It completely misses the differences in the business models, it misses target groups, it misses the profit differences between Apple and google, it misses the ecosystem-effect google build around Android with exactly that cheap price tactic, it misses market segmentation, it misses strategy investments. It boils all that down to:

Higher end-user price == higher quality.

Also when you are going to compare on sold devices only then add least try to get the likes like Samsung into your comparission. They are much closer to Apple's business model then Google is. Try to understand WHO is doing the R&D for iPhone vs Android and WHO is doing the services for iPhone vs Android and WHO is doing the products/devices for iPhone vs Android and WHAT are there business models.

Then its clear why your logic chain is wrong. Just accept the fact that Apple as of today is not interested to increase market share, there focus is on increasing profit by sold device. Unlike google which does not even make a single $ with all the Android devices e.g. Samsung sold UP to the moment the customer has the device in there hand and starts using it.

Edited 2012-10-31 07:06 UTC

Reply Parent Score: 1