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Wednesday, January 06, 2010 10:37 AM/EST

Price Check: Google Nexus One Versus IPhone, Droid, Pre

Ever since rumors issued forth from gadget blogs that Google would sell its Nexus One unlocked and unsubsidized, or locked and subsidized by T-Mobile and its two-year contract, price has been a big issue regarding Google's new smartphone.

We now know for sure we can pay $529 for the Nexus One and pop our own SIM into it, provided it's for GSM networks.

Also confirmed is that T-Mobile, a GSM purveyor, will support the Nexus One with a two-year contract for $179.

Fortunately, the boys over at BillShrink have liberated us from clicking through the Websites of top smartphone vendors to see how much the Nexus One will cost consumers when unit acquisition costs and data plans are factored out.

Even better, BillShrink compares Nexus One pricing to the costs of smartphones with which it is intended to vie for market share, including Apple's iPhone 3GS, Palm's Pre and Motorola's Droid device.

Here is the graphic, including itemized pricing for all of the phones, capped by unlimited and average net costs for the four smartphones over 24 months:

Billshrink Nexus.png

Since many reviewers have compared the Nexus One to the hallowed iPhone, you'll note that the cost to consumers who subscribe to the unlimited plan for iPhone 3GS is $1,220 more than the comparable plan for the Nexus One over two years.

So, if price is the ultimate issue for you, you may want to give the Nexus One a good, hard look. You'll save $30 more with the Pre by comparison, but the Nexus One blows the Pre away in features and functionality. It's just a newer, faster fun.

So when you choose, choose wisely.

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Comments (7)

The currently available Nexus One device is unlocked and will recognize SIM cards from any mobile service provider using the GSM standard, but is incompatible with the frequency band used by the AT&T and Rogers networks for 3G data (see below). Additionally, the Nexus One is incompatible with CDMA networks such as Verizon and Sprint.

We are working hard to provide Nexus One phones optimized for the Verizon network - please stay tuned. The Nexus One for Verizon will not be a GSM device, so it will not be compatible with T-Mobile, AT&T, or other GSM networks.

The Nexus One's antenna supports four GSM radio frequencies (850/900/1800/1900) and three 3G/UMTS Bands - 1/4/8 (2100/AWS/900). These cover most major GSM mobile providers worldwide; however, the 3G band used by AT&T and Rogers is not supported. For questions about the bands supported by your mobile service provider, please contact your provider directly. You may also consult a list of GSM coverage worldwide that is maintained by the mobile trade organization GSM World.

Thanks for the side-by-side comparison..very helpful when considering a swap..love my Pre, but the lack of apps for it is maddening!!

RadMan :

Wow
I had lost confidence in eWeek after the downsizing in the year that we will want to forget, but this article renews my faith; this is some nice work, Clint . And the BillShrink clipping is a nice touch.

Andrew :

Does it make any sense to purchase the T-Mobile package? The Even More Individual 500 Plan, when bundled with the Nexus One costs $79.99/mo, but if bought separately from T-Mobile it only costs $59.99/mo. Over the course of the two year contract, the bundled plan will cost $20x24 or $480 more. However, you only save $350 by signing the contract. Seems to me that paying the full purchase price with the cheaper monthly plan is the way to go... or am I missing something?

To Andrew: yes, you are missing something, and that is the time value of money. According to your math, going with a plan costs you $130 more over two years. But to be fair (and compatible with financial models), you need to consider your Internal Rate of Return. That extra $5 and change dollars in your pocket every month would (should) be automatically invested in something. A money market, T-Bills, S&P 500 index fund, etc. You will then be earning interest on that. (You DO earn interest on all your liquid money, right?) I don't have my HP-12 handy, but I'm pretty sure that the "phone + plan" would come out ahead.

If you (meaning anyone) don't have an IRR (you just may not know what it is), then you are probably living paycheck to paycheck anyway, have no financial plan for the future, and will be that way for the rest of your life. (In which case your IRR is actually pretty high and more cash in your pocket now is almost always better than later now matter how much you'd save by spending now and reaping later.)

That being said, I agree wholeheartedly with the overall concept of buying a phone, THEN a plan. (And then for a "plan" not to be a plan at all, but a flat usage rate.) If everyone did that, it would save us all money as there would be more directly comparable competition on two fronts (hardware and usage rate costs), not just fuzzy math on one (phone plus obscure "plan"). This was supposed to have happened back when the US switched from analog to digital cellular--there were great plans and agreements in place. Sadly, the status quo won.

Anyway, just answering your question about "am I missing something".

you cannot forward text messages on the Iphone. It's one of my biggest complaints about the iphone, next to the fact you can't send or receive multi media messages.

I love the Iphone to but somethings about it really gets on my nerves. They better fix it so you can receive multi media messages. If they dont then one of there competitors will.

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