Originally Posted by chenks:
“there are several internet reports (from reputable sites) that suggest that google itself may be selling it at close to cost or at a loss via the play store.
the theory being that google makes up for it via ad revenues etc (ie it's a loss leader for google).
if that is to be believed that CPW must be selling either at cost or at a loss. but then you have to ask why would CPW do that, unless there is something in it for them.”
All I have read is that Google do make a profit on these granted not huge amounts but not at cost or loss to them. Clearly this isn't a great business model other than the side benefits.
Given the build costs of other phones I would reckon this is a very small margin for CPW so my guess is they knew what may be coming from Spain soon.
I can't see why Google would provide any subsidy for CPW to sell these
I also think the Nexus line will be replaced by play edition devices at some point