Research firm iSuppli reports Google"s Nexus One smartphone is built with hardware totaling approximately $174. Manufactured by HTC but sold under the Google brand name, the Nexus One is priced at $529 without a service contract or $179 with a two-year agreement from T-Mobile. The iSuppli teardown did not factor in manufacturing or licensing costs, therefore decreasing the profit margin.
The Bill-of-Materials breaks down as follows:
- $30.50 for the Qualcomm 1GHz Snapdragon Processor
- $20.40 for the Samsung DDR Multichip Package
- $8.20 for the Broadcom Bluetooth Transmitter/Receiver
- $2.50 for the Qualcomm Power Management IC
- $2.50 for the Qualcomm RF Transceiver
- $2.20 for the 4 Power Amplifier Modules
- $1.20 for the Texas Instruments Power Management & Li-ion Charger
- $23.50 for the Samsung Display
- $17.50 for the Synaptics Touchscreen
- $16.30 for Miscellaneous Electronic Components
- $12.50 for the 5MP Camera
- $8.50 for the 4GB MicroSD card
- $7.50 for Miscellaneous Electromechanical Components (Connectors, Acoustics, etc.)
- $6.60 for PCB"s
- $6.20 for Miscellaneous Mechanical Components (Plastics, Metals, Hardware Shielding, Insulation, etc.)
- $5.25 for the Battery
- $2.80 for the Aluminum Unibody Main Enclosure
Qualcomm leads all other suppliers with 20.4% of the Nexus One"s BOM. The Snapdragon processor is the most expensive single component with the 3.7-inch OLED display coming in second. iSuppli found the Nexus One to be the most "Apple-like" product to date, with a unibody design similar to that of the iPhone.
Kevin Keller, Senior Analyst at iSuppli, states, "With the Nexus One, Google has taken the most advanced features seen in recent smart phone designs and wrapped them up into a single sleek design. Items like the durable unibody construction, the blazingly fast Snapdragon baseband processor and the bright and sharp Active-Matrix Organic Light Emitting Diode (AM-OLED) display all have been seen in previous phones, but never before combined into a single design. This gives the Nexus One the most advanced features of any smart phone ever dissected by iSuppli"s Teardown Analysis Service - a remarkable feat given the product"s BOM is similar to comparable products introduced during the past year."