Originally Posted by afv011
Indeed. Especially when you can get a Nexus at about 1/2 the price of competing devices. With Google setting a new benchmark in prices, I hope other manufacturers follow suit and stop asking $600+ for high-end smartphones and tablets.
I seriously wonder how you expect other companies to make money when they're forced to compete with Google who can sell Nexus devices at cost because they profit from search. I don't see Samsung, HTC, and LG branching out of the hardware business. If there are no more margins on hardware, hardware competitors can't exist.
And don't forget that those low upfront costs come with hidden costs down the road. Uninstallable bloatware on new phones. Locked bootloaders. Spammy advertisements in built-in services. Low R&D budgets. Carrier-locked handsets sold only on contract.