Originally Posted by Crowl
Google don't care about making a profit on the hardware, whereas hardware companies need to do so in order to survive, so it is hardly a shock that prices are higher when not bought direct.
Yes, but the profit margins on smartphones have been outrageous. Google may not be making any money on the 8GB Nexus 4, but they're certainly making some on the 16GB, as 8GB extra doesn't cost you $50. Should they manage to keep supply up, I can't see anybody else maintaining the king-ransom prices they're currently asking for smartphones.