The Nexus 4 is very popular these days – at least in the US. Starting at $299 for an unlocked phone, it’s considered “cheap” by US unlocked device standards. Unfortunately, someone over at Google or LG forgot to inform Europe that the Nexus 4 is supposed to be cheap.
Here in Norway, the Nexus 16GB (only model available) is being sold as a 4000 NOK device. The entire carrier/phone system works completely differently here, so that all phones can be (and often are) bought unlocked, phones are hardware-wise identical across carriers, and rules saying that a contract can be no longer than 12 months and that the total cost of ownership has to be listed. This means that people here follow a different logic than the US method of looking at the subsidized cost and nothing else.
Direct currency exchange doesn’t properly reflect the price, since there are economic differences between the US and Europe that makes things more expensive here to compensate for higher wages. However, if you were to run 4000 NOK through a currency converter, it would show 700 USD. A better comparison is to compare device costs. So, to put those 4000 NOK in perspective, here’s a list of other devices and their prices, all unlocked:
- Galaxy S III: 3750 NOK
- Galaxy Note II: 4400 NOK
- HTC One X: 3500 NOK
- iPad 4 16GB WiFi: 3900 NOK
This puts the Nexus 4 at being more expensive than the Galaxy S III and only slightly cheaper than the Galaxy Note II. I don’t know exactly where the Nexus 4 fits on this scale – in my opinion the lack of an SD card slot, the glass back, and the fact it’s made by LG basically makes it a 1500 NOK value device – but I think most people would agree that it’s not a device you pay more than a Galaxy S III for.
Another way of looking at it is to compare it with the recently released iPad mini. The base model is $329, square in between the 8GB and 16GB Nexus 4 models in the US. In Norway, the same iPad mini sells for 2600 NOK, which is a much more reasonable price. That puts it significantly above the Nexus 7 (1600 NOK and up) while still placing it lower than larger tablets, including the iPad 4. It also shows a completely different way of pricing the device for Europe than what Google and LG are trying to pull, and that by a company that operates hardware sales worldwide – which would indicate it has a slightly better understanding of things.
In the UK, the Nexus 4 doesn’t seem to be available in an unlocked variant, but is instead coming to carriers – and not as a bargain option. In Germany, the price is €350 for the 8GB model and €450 for the 16GB model from what I’ve been able to dig up, which is essentially equal to the Norwegian pricing. What seems to be similar across the line is that the Nexus 4 is not a budget device.
The same thing happened back when the Galaxy Nexus was released, and it essentially followed the Galaxy S II price curve. That left me with the choice of two different Samsung phones when I bought my phone, and I landed on the Galaxy S II because a higher resolution screen and NFC couldn’t compete with a better camera, removable battery, and an SD card slot. Now the Nexus 4 is left competing (in some markets) against a Galaxy S III that’s cheaper and has a better screen, expandable memory, and replaceable battery. It doesn’t exactly make for the most straightforward decision in the world, now does it?
I don’t know who is responsible for the ridiculous increase in price, but seeing as though competing retailers seem to land on the same price, I don’t think it’s their fault. I’ve seen a single Galaxy Nexus in the wild, ever, and it seems that the Nexus 4 might just become an equally rare sighting.
The 8GB Nexus 4 was (briefly) available for £239 unlocked here in the UK from the Google Play Store, but the stock sold out and there’s no indication of when more hadnsets will be available. O2 think it’s funny to sell it for £400, locked, on pay as you go.
But I can see how you’re getting screwed over in Norway – for comparison, here in the UK, the Galaxy S III can be gotten for £400 unlocked from Amazon, the One X for £380, and the iPad 4 for £400. The Galaxy Note II is still £500 from Amazon (though I could have sworn it was lower).
Edit: the £400 from O2 is for the 16GB version (still way more than the £279 that Google were asking for it).
Wow and I was thinking that only Germans/Euro get screwed by the price, but that is really crazy.
It’s not that anyone is responsible for the increase in price, it’s Google who’s responsible for the decrease in price. The reason why it’s so much cheaper in the Play store is because Google is subsidizing the cost if you buy it through them. Google probably wasn’t prepared to subsidize it for everyone.
That would make sense if the Nexus 4 was indeed a 4000 NOK phone. It isn’t. It’s not just more expensive here than in the US, it’s more expensive than a phone like that should be at all
It’s like any new product launched, the pricing is as much of a guessing game. Give it enough time and eventually the price will lower when they aren’t moving off the shelves. The market takes care of mis-pricings eventually.
Holy cow! That’s a pretty HIGH amount of money. In Spain, where I used to live, on Play Store they sold few units (seemed to be a total mess) for the equivalent of 2560 NOK (349 EUR, 16GB version), 36% LESS than in you country!!! o.O
Taxes? Stock? Where’s the problem? You know, the USA Nexus 4 16GB price can compare to the high end chinese phones (e.g.: Xiaomi M2 @1999 CNY~320USD -same CPU, RAM, similar camera, 4,3″ 720p screen, replaceable battery, hackable/weekly upgradeable MIUI skin), that’s impressive… if you live there, anyway.
Greetings from Guangzhou!
Right now, part of the problem might be supply, as even here in the US the Nexus 4 is going for in excess of $600 on eBay since it is still sold out in the Play Store. However, this price is still simply on par with other unlocked smartphones, and not higher. I’m not sure why LG would price the Nexus 4 so much higher in Europe unless Google really does subsidize it that much. I wonder how much the comprable Optimus G costs in Europe, since it is practically the same as the Nexus in terms of hardware.
I’m curious: On what the SGS III screen is better than Nexus 4′s? Same resolution, but better tech on the Nexus…
I’d be interested in that, too. I’ve read a few side by side comparisons that give the edge to LG as far as the screen is concerned…
The Nexus 4 is subsidized by Google on the Play Store. Google makes their money through search/software, everything else is just extra.