Quote:
Originally Posted by Red-Mile-DJ
I should add, Google only makes a out $30 on each Nexus 5 (32GB) and breaks even on the 16GB version.
It's not about undercutting, but showing people that you can have a quality phone without giving up a kidney or left leg.
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Making no money on hardware isn't exactly a successful business model and it's not like these phones are really going to put a dent in Apple's business. This is more Google realizing that they can't compete with Apple in the hardware business and doing anything possible to get their OS in the hands of consumers even if it means making no profits on the hardware.