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Comment by thaumasiotes | Hacker News Reader

> In hindsight, I have to suspect that Google and LG's plans all along was to create a phone with high specs at a low price point but restrict the supply as they "learned" to lower costs for their subsequent models.

Well, unfortunately the price of a nexus 5 is much higher than the price of a nexus 4. (On release - $300 for an 8GB 4, or $350 for 16GB; $350 for a 16GB 5, or $400 for 32GB. I would happily take an 8GB option; I don't make a habit of storing anything other than pictures on my phone. Or, to get really crazy, they could allow for removable media...)

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> Well, unfortunately the price of a nexus 5 is much higher than the price of a nexus 4. (On release - $300 for an 8GB 4, or $350 for 16GB; $350 for a 16GB 5, or $400 for 32GB.

What? You're saying the 16GB Nexus 4 was $350. The 16GB Nexus 5 is $349 for a vastly improved phone. How is that a "much higher" price?

Is the issue just that they don't offer an 8GB model any more? I can understand that. But comparing phone to phone with the same memory, isn't the Nexus 5 a much better deal?

They were recently selling the N4 8gb for $199 (and sold out AFAIK) and the 16gb model for $249. I was about to buy one until I got hit with ~$1500 in veterinary bills last month, and now it's too late.

I thought it was interesting that Google chose to set a price floor by withdrawing the old model from sale completely, in similar fashion to Apple's removal of the iPad 3/4 from the Apple store and maintenance of a relatively high price to the iPad 2. I haven't seen companies exercise this sort of pricing strategy as much in the past.

> But comparing phone to phone with the same memory, isn't the Nexus 5 a much better deal?

This is getting repetitive, but why would you do that? There are no lifetime achievement awards for buying the most price-efficient phone, even if it costs you $750,000 ("but think of all the features you get!"). Compare the minimum price of $300 to the minimum price of $350. There's been a substantial increase.

The Nexus S was $400 (in some model, likely the cheapest). The 4 was a welcome signal of attention to price. This is going in the wrong direction.

...Are those the numbers you meant to post? You've got the 16GB 4 and 5 priced exactly the same.

Yes, I know they're priced the same. However, you'll notice that the 8GB 5 is difficult to purchase. Why pay a substantial sum (a 17% price increase!) for a "benefit" you'll never notice?

You can get the best price-per-unit-weight on rice by buying tons of the stuff, but very few consumers are willing to do that. We prefer to buy in pounds for various reasons.

"Lower quality, lower price" is an incredibly time-honored and effective philosophy -- of buying things and of selling them.

And if you want to consider the recent pricing (I tend to agree that the 4s were priced to move, so it's not a great comparison)? The 4 is a clear winner. There is no way I'd voluntarily pay $350 for a new nexus 5 instead of $200 for a new nexus 4.

For one thing there is no 8GB Nexus 5. For another, anyone following Google's Nexus product lines knew that the $199 and $249 price points were obviously clearance prices to move the last bit of inventory out of the pipeline and make way for the Nexus 5.

It's silly you'd even argue this considering there is no other phone you can buy for $350 that is anywhere near as capable as the Nexus 5. It is competing with phones with an MSRP of over $500.

Let's compare what you're telling me with what I wrote:

> For one thing there is no 8GB Nexus 5.

"you'll notice that the 8GB 5 is difficult to purchase"

You seem to be agreeing with me.

> anyone following Google's Nexus product lines knew that the $199 and $249 price points were obviously clearance prices to move the last bit of inventory out of the pipeline

"I tend to agree that the 4s were priced to move, so it's not a great comparison"

It's very difficult to persuade someone that their views are faulty by only telling them things they've already stated themselves. Where are you trying to go with this?

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