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Building Nexus One: $174.15, Hedging Your Ad Bets: Priceless

At $174.15, Google's new smartphone costs almost as much as an iPhone 3GS. Analysts say Google's motivation to sell its own phone mirrors Apple's, even if the reasons are different.

About $174.15. That's the early estimate of what it costs to build Google's new Nexus One, according to a preliminary estimate by iSuppli, which regularly breaks down the cost of popular consumer devices as part of its teardown research service.

Kevin Keller, iSuppli's senior analyst for competitive analysis, credits Google for including the most advanced features of recent phone designs in the sleek Nexus One.

"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," Keller said in a statement. "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."

Read "Nexus One Priced Out in Teardown Analysis" at Enterprise Mobile Today