You also can't ignore the fact that in the US other phones in it's class are subsidized by $400 or more, upending this comparison greatly. Yes you're locked into a contract but it's not like Nexus 4 users get some special monthly rate. For some use cases being off contract is a god send, for most though, a subsidized iphone 5 or galaxy s3 is a better option at $100 cheaper (and a higher resale in case you want to break that contract).