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Will Nexus 4 trigger a price war?

Google has launched several Nexus devices till now, with the first one being HTC N1. All the Nexus devices have been very interesting, and the search engine giant recently launched two new Nexus devices – Nexus 4 and Nexus 10 – and one updated version of previously launched Nexus 7 tablet.

Nexus 10 has some great specs which makes me happy every time I look at it and same is the case with Nexus 4 as well, but what makes me even more happier is the price tag that Nexus 4 is launched with.

When the news hit the internet that Google was going to launch Nexus 4, and with the spec sheet already leaked several days ahead of the launch, it was anticipated that the device will be launched with a price tag of around $500, but Google managed to surprise us all by launching it at $350 for 16 gig model, and considering the specs that the device packs, that price is very reasonable. Here are the specs of Nexus 4 if you have missed it:

• Screen 4.7” 1280×768 (320ppi)
• WXGA, HD IPS+
• Corning® Gorilla® Glass 2
• Size H: 5.27 in (133.9 mm)
• W: 2.7 in (68.7 mm)
• D: 0.36 in (9.1 mm)
• Weight 0.31 lbs (139 g)
• Cameras Main: 8MP BSI sensor, 1080p video
• Front: 1.3MP, 720p video
• Face recognition
• Memory 8GB or 16GB (formatted capacity will be less)
• Chipset Qualcomm Snapdragon S4 Pro 1.5GHz (Adreno 320 GPU)
• RAM 2GB
• Sensors Accelerometer, Compass, Ambient light, Proximity, Gyroscope, Pressure, GPS
• Network Unlocked GSM/UMTS/HSPA+
• GSM/EDGE/GPRS (850, 900, 1800, 1900 MHz)
• 3G (850, 900, 1700, 1900, 2100 MHz)
• HSPA+ 42 Mbps
• Wireless Wireless display on a Miracast compatible HD TV
• Dual-band Wi-Fi (802.11 b/g/n)
• Bluetooth
• NFC (Android Beam)
• Power Wireless charging (use any Qi-compatible charger)
• 2,100 mAH Li-polymer battery
• Standby: up to 250 hours
• Talk time: up to 10 hours
• Music playback: up to 40 hours
• Video playback: up to 8 hours
• Web browsing: up to 7 hours
• OS Android Jelly Bean (4.2)

It has 4.7″ True HD display and powerful quad-core processor, yet costs $350 for the 16 GB version. That is definitely a threat to other manufacturers, and as of now, you will be able to buy a good mid-range Android device at that price point from other manufacturers.

The only other manufacturer with that aggressive pricing for a quad-core handset with HD screen is Xiaomi with its Mi-Two. The Mi-Two costs the equivalent of $320, but is only available in China. There are certain cost cutting measures that Google and LG have taken in order to launch the device at that price point. Some of the measures include no LTE connectivity and no microSD card slot. Yes, the hardware of microSD card slot may be cheap, but the $15 licensing fee that the manufacture has to pay Microsoft for licensing exFAT file system isn’t.

The Nexus 4 has high-end specs for a low-midrange price, and comes with added benefits such as direct updates from Google which makes it relatively futureproof when compared to Android devices from other manufacturers. Launch of Nexus device at such a low price point will definitely trigger an avalanche of price cuts and we may see better devices at lower price point from now on. Manufacturers should indeed stop being greedy by selling mid-range handsets at a price point where a high end device can be easily delivered to customer.

Nexus devices are always seen as reference devices. Launch of Nexus 7 at $199 price point has encouraged other manufacturers to launch their own high quality offering at that price point. We hope the same will be the case with smartphones as well and we may soon be able to buy an unlocked high end Android at around $400 as opposed to current norm of $600+. What are your thoughts on this? Let us know using the comment form below.