Google is expected to release the Nexus 5 sometime by the end of the month and consumers and analysts alike are wondering if Nexus 5 will be able to repeat Nexus 4’s success .
With leaks flowing in left, right and center we are more or less certain about key specs of Nexus 5 – Qualcomm Snapdragon 800 processor clocked at 2.3GHz, a 4.9-inch display with full HD 1080p resolution, 2GB RAM, 16GB and 32GB internal storage options, NFC, wireless charging, and standard set of sensors, among others. The smartphone is expected to pack some of the best components out there in a bid to rival the likes of Xperia Z1, LG G2, Galaxy Note 3 and may be the iPhone 5S.
When the Nexus 4 was released last year in November, no one expected it to sell out quickly and that its supply-demand ratio will remain skewed for months following launch. Around the same time when Nexus 4 8GB, 16GB were launched for $299 & $349 respectively, Samsung and Apple were offering their own handsets for $100 & $200 on two year contracts.
The effective price of ownership of handsets from Samsung, Apple handsets didn’t just work out at those prices though as carriers would lock-in the customers for 2 years and get back the subsidy in the form of monthly rentals thereby pushing the effective cost of ownership to $500 or even $600.
This is where the Nexus 4 excelled with its SIM-free pricing of $349 (max) and customers were free to choose whichever carrier they wanted to go for and opt for a plan that suits them without getting locked-in for two years. Google’s sales model fit perfectly and managed to compete well with Samsung and Apple.
Google would want to repeat the same strategy for Nexus 5 which worked well with Nexus 4. If reports are to be believed Google will tag its Nexus 5 with a $350 price for the base model keeping it well clear off the top of the range smartphones from Samsung, Sony, HTC and Apple.
