Retailers rebel as LG tries pricing Nexus 4 up to €599

Retailers rebel as LG tries pricing Nexus 4 up to €599

Summary: The new Nexus Android handset costs up to €349 through Google, but it seems manufacturer LG is trying to make more money through other channels. Some retailers are not impressed with that tactic.

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LG is facing an angry backlash from some prospective customers after it emerged that the manufacturer was trying to charge as much as €599 for the Nexus 4 handset.

nexus-4
The new Nexus Android handset costs up to €349 through Google, but it seems manufacturer LG is trying to make more money through other channels.

The Nexus 4, like all Nexus Android devices, is the result of a close partnership with Google. The software firm is offering European customers the handset for between €299-€349 (£239-£280) through the Google Play store, but it now appears that the manufacturer is aiming for a much higher retail price via other channels.

The higher price was revealed on Friday by Phone House, Carphone Warehouse's Spanish arm, which said on its Facebook page that it had decided to suspend the sale of the Nexus 4. It said the manufacturer's recommended price of €599 made it impossible for the retailer to honour its low price guarantee.

Meanwhile, as The Next Web has noted, LG seems to have instituted a similar price point in Italy and Austria.

The UK operations of Carphone Warehouse are not offering the Nexus 4 SIM-free at all, selling it only with contracts attached.

Some of those contract prices have already irked customers — the comments thread on this O2 blog post shows people expressing outrage that, although Google sells the 16GB version of the phone for £279, O2's pricing over a two-year contract totals £864. If LG's wholesale price for operators is also unexpectedly inflated, that may explain some of the high contract pricing.

The pricing of the Nexus 4 is one of its most attractive points, as €349 is very low for a high-end Android smartphone, even one without LTE capabilities. Other powerful-but-cheap Nexus devices, such as the Nexus 7 tablet, have not been marked up for retail sales outside of Google Play.

ZDNet has asked LG for comment, but had received none at the time of writing.

Topics: Android, Mobility, Smartphones

David Meyer

About David Meyer

David Meyer is a freelance technology journalist. He fell into journalism when he realised his musical career wouldn't pay the bills. David's main focus is on communications, as well as internet technologies, regulation and mobile devices.

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3 comments
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  • LG will set itself back by two years like HTC. Apple it's not.

    HTC thought its mission was to overcharge for its phone. HTC nearly died. LG thinks, how great would it be to overcharge like Apple. LGs job is to produce as efficiently as possible a device that is designed for a mass audience. If LG wants to use telcos to swindle users with leases that treat phone owners like share croppers it will deserve what follows.
    jnffarrell
    • LG is the second biggest company in South Korea...

      after Samsung. Somehow, I don't see this pricing move ruining the company.
      illdini
  • Real price

    It's apparent the real price is not what is listed. Apple too sells the iPhone 5 for $199 with contract, no?

    Apparently, the real price of the phone is what LG is asking, not what the wishful thinking suggests.
    danbi