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Google’s Nexus One to be a $20 billion money machine?
The entire world knows that Google launched their Nexus One last week to much fanfare and frustration. One outfit called Trefis has boldly stated that this superphone will generate $20 billion for Google.
They state “Although $20 billion may seem high for a business that just launched in January, the precedent set by Apple’s iPhone business suggests that it could be even higher. Apple’s stock has more than doubled since it announced the iPhone in early 2007 and we estimate that iPhones constitute about 50% of the Apple’s value or more than $100 billion.”
Although us Canadians yet to have the luxury of a Nexus One, Trefis believes that Google will eventually introduce multiple versions at different price points. “Google phone pricing will decline at a fast rate initially as Google introduces lower priced versions of the phone and competition with other smartphone makers (Apple, RIM, Nokia) drives down prices.”
Check out the full report here
Via: Forbes
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2 comments for “Google’s Nexus One to be a $20 billion money machine?”
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I’m sorry but I think this idea is ridiculous.
Apple has developed many excellent ways of making money from iPhone users. That is their business. AT&T explained clearly how lucrative iPhone users (when justifying the deal they gave Apple).
Google is protecting its existing profit centre. They saw that the unprecedented control that Apple has over their users allowed Apple to shut out Google (e.g. Google Voice). Google’s phone has none of those same lock-ins that Apple uses to generate income – it is just a defensive move.
Often, unknown companies will make ridiculous claims to generate publicity for themselves. I think this is a case of that and that you have played into their hands.
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Sorry Tom, I hear what you are saying but. Who was apple before the iPhone an overpriced computer company? Or a mp3 provider? For all you that are going to say apple was way more then that you have to remember iPhone has been out for like 4 yrs so remember what DID you know about apple back then. Anyways my point is yes google has made a phone to make more money (shocking) but to say they are an unknown company that’s crazy.
Please correct me if I missed the point of your comment.
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