T-Mobile confirmed that it does not make a profit on the phone, suggesting that Google helps out with a subsidy when purchased at Google Play. November 8, 2013 2:13 PM PST (Credit: Jason Cipriani/CNET) No, T-Mobile isn't hosing customers who buy its Nexus 5. Related stories Google Nexus 5 to hit T-Mobile stores November 20 Nexus 5 now available through Sprint and Best Buy Did Verizon block the Nexus 7 to push its Ellipsis 7 tablet? T-Mobile tipped to offer Nexus 5 on November 20 Nexus 5 proves easy to repair, says iFixit T-Mobile on Friday said it would offer the Nexus 5 starting November 14 with a down payment of $41.99 and 24 monthly payments of $17. Add that up, and you get $450, which happens to be $100 more than what Google is charging for the phone at its Google Play store. The natural assumption, given this is a Google phone, is that T-Mobile is somehow generating a tidy profit on the highly coveted device. But that's not so, says T-Mobile. A representative confirmed to CNET that it pays full retail price when it purchases the phone from Google's manufacturing partner, LG. "Why Google charges $350 for the Nexus 5 is a great question for them," said the representative. CNET contacted Google about the pricing structure of the Nexus 5, and we'll update the story when the company responds. The difference in pricing does suggest Google is offering a subsidy for the Nexus 5, giving customers who buy directly from Google a break on the device. The Nexus 5 has won rave reviews, with CNET editor Lynn La praising the "excellent price" and calling it "the best Nexus phone by far." Indeed, many have wondered how Google and LG managed to pack in some many high-end specifications while keeping the full, unlocked price at a reasonable level. An unlocked iPhone, for instance, will start at $650, with only contracts and subsidies bringing it down to $200. T-Mobile, meanwhile, argues it offers a better deal on an upfront basis. Rather than fork over several hundred dollars at once, T-Mobile customers can pay a small fee at the beginning and pay the rest off in installments, even if the total cost is $100 more than at Google Play. Sprint began selling the Nexus 5 for $50 with a two-year contract. Like T-Mobile, it lists the "regular price" as $450.
T-Mobile confirmed that it does not make a profit on the phone, suggesting that Google helps out with a subsidy when purchased at Google Play.
No, T-Mobile isn't hosing customers who buy its Nexus 5.
Related stories
- Google Nexus 5 to hit T-Mobile stores November 20
- Nexus 5 now available through Sprint and Best Buy
- Did Verizon block the Nexus 7 to push its Ellipsis 7 tablet?
- T-Mobile tipped to offer Nexus 5 on November 20
- Nexus 5 proves easy to repair, says iFixit
T-Mobile on Friday said it would offer the Nexus 5 starting November 14 with a down payment of $41.99 and 24 monthly payments of $17. Add that up, and you get $450, which happens to be $100 more than what Google is charging for the phone at its Google Play store.
The natural assumption, given this is a Google phone, is that T-Mobile is somehow generating a tidy profit on the highly coveted device. But that's not so, says T-Mobile. A representative confirmed to CNET that it pays full retail price when it purchases the phone from Google's manufacturing partner, LG.
"Why Google charges $350 for the Nexus 5 is a great question for them," said the representative.
CNET contacted Google about the pricing structure of the Nexus 5, and we'll update the story when the company responds.
The difference in pricing does suggest Google is offering a subsidy for the Nexus 5, giving customers who buy directly from Google a break on the device.
The Nexus 5 has won rave reviews, with CNET editor Lynn La praising the "excellent price" and calling it "the best Nexus phone by far."
Indeed, many have wondered how Google and LG managed to pack in some many high-end specifications while keeping the full, unlocked price at a reasonable level. An unlocked iPhone, for instance, will start at $650, with only contracts and subsidies bringing it down to $200.
T-Mobile, meanwhile, argues it offers a better deal on an upfront basis. Rather than fork over several hundred dollars at once, T-Mobile customers can pay a small fee at the beginning and pay the rest off in installments, even if the total cost is $100 more than at Google Play.
Sprint began selling the Nexus 5 for $50 with a two-year contract. Like T-Mobile, it lists the "regular price" as $450.
