Why T-Mobile charges $100 more for the Nexus 5 – No, it’s not a con

nexus 5

Yesterday we got official word that T-Mobile US would be selling the Nexus 5 through its own channels from next week. Online stores will begin selling the device from November 14th, with retail stores and select partners offering it up for sale from the 20th. This was a few days after we received a tip off that stated retail stores would start selling it on November 20th.

One sticking point however, is the price. Early reactions from you – our readers and others – is to criticize T-Mobile for pricing it at $100 more than Google. With an initial down payment of $41.99, then 24 monthly payments of $17, T-Mobile’s price for the Nexus 5 comes to $449.99. Although there’s a huge convenience for those that don’t have the $349 to pay Google up front, it’s still a considerable markup. And there’s good reason for it, regardless of how consumers may feel.

Having reached out to T-Mobile, CNET got word that the carrier’s reason for the price is simple: That’s what Tmo pays LG for each unit. If LG charges T-Mobile $449, it makes little business sense for the network operator to offer a $100 discount to price match. Unless its plan is to lose a lot of money. It’s Google then offering a subsidy on the handset, and not T-Mobile trying to rip-off its customers for an extra $100. Maybe Google has done a deal with LG to sell these cheaper, or paid LG $450 and just taken a hit in hope that it brings more customers through its Play Store and generates enough profit from content and ad sales to make up the $100 difference.

Of course this doesn’t change the fact that, as an end consumer, you’re still paying more to get it from T-Mobile. An extra $100 for a device that’s no different to the one on sale on the Play Store. There’s no T-Mobile bloatware, no carrier lock, no Wi-Fi calling. It’s the same carrier unlocked, 16GB model on sale for $349 from Google. T-Mobile pays $450, so you pay $450. It’s still frustrating, it’s still worse value for money. But it isn’t a swindle.

Of course, T-Mobile will argue it offers better value in the short term. You only have to cough up $42 initially, and pay the rest in installments. And I know that for some of you, financially, that’s the only option. I guess if there is a positive spin on this, it’s that $450 is still fairly cheap for a top handset. An iPhone – for instance – unlocked and off-contract costs $649.

Let us know in the comments if you already planning on getting it through your carrier, or if Google Play is your best option.

News Via: CNET

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  • notpoliticalyet

    Find it tough to believe LG charges $450 to T-Mobile when this device probably cost $150 to produce. Cheap labor and parts to make these. They are finally making money on devices since the uncarrier campaign started. Full price for all devices, correct? Upgrade when you want…lol

    • UMA_Fan

      It also costs $.20 to make a DVD and they sell for $30.00. Too bad most movies cost millions of dollars to make. See how silly your rationalization is?

      • n900mixalot

        google has openly stated that they break even when they sell devices, Nexus devices, at the price if they do. So it is safe to assume that for a 16 gigabyte Nexus 5 they are paying LG $350 or somewhere very close to that. So anything about that is profit.

        • UMA_Fan

          For those specs $450 is very reasonable. Everything on the market equivalent to that is $600. What’s Google breaking even on? They are not manufacturing the phone. I think they are ‘content’ subsidizing it like amazon does with kindle devices. Yes, there’s a profit but the components of a $600 phone of today are very comparable across manufacturers.

        • n900mixalot

          What Google pays LG is very close to what Google charges you when you buy through the Play Store. That’s what I mean by breaking even.

        • HRoth_Gar

          But what LG sells to Google at $350 a kit has very little to do with what price they put on it for other retailers. For LG to get this contract with Google they had to agree to some very specific things, including what the actual price of the device gets to be for them, and if LG wants to make a profit on T-Mobile and all the other carriers, that is their right. Sucks for people wanting to buy from a brick and mortar store, but it is what it is.

        • fentonr

          I understand what you are saying, but no, anything above $350 is not profit, it’s markup. Other costs in selling a device are just the same as the cost of the device itself.
          say you own a company that makes and sells gadgets online. You can ship the gadget for a flat rate of $20/per and you can make the gadget for $100/per. Would you say you make a $20 profit off of each gadget if you sold them for $120 each? No, because you’re not making a $20 profit. You’re correct in thinking that overhead and administrative costs shouldn’t be included when figuring out the cost of the sale, but all costs repeated to the sale of the device must be added in. This is just how it works.

        • n900mixalot

          What that would mean then is that it costs T Mobile 100 more dollars than it does Google to get the device out to customers, which doesn’t make all that much sense if Google is breaking even at $350. There has to be profit built in there somewhere, even though it’s not very much, maybe 30 or 40 dollars … Or perhaps more? But its still in there.

          I don’t disagree with you, but I think we’ve reached the point of splitting hairs. And I also misused the word profit. You’re absolutely right, it’s markup.

    • fentonr

      I’m not expecting you to believe this, but they don’t make much. $20 -$30 but that’s about it. Typically manufacturers take a profit of $200-$300. Apple for example, builds their phones for around $200 (16 gb 5s) and sells it for $630ish.

  • jury_rigger

    It’s not our concern what TMo pays LG for the phone, just what the bottom line is. Should have offered Wi-Fi calling on yours to at least differentiate yourself. Would I have paid more for that feature? Maybe. $100 more? Nope.

    Makes no sense whatsoever to buy this from T-Mo. With Play store availability for everyone at a non-jacked up price, they’ll be dumping these for less than Play store prices when inventory piles up.

    • fentonr

      It makes sense if you don’t have $350 to fork over all at once, and that’s the case for a lot of people. If you’re buying it from a store, you’re also buying the customer support. The store I worked at would turn people away if the phone wasn’t purchased from them…not to be jerks, but because we couldn’t stay in business if everyone purchased phones elsewhere and only came to us when they wanted free help.

      Those two are enough reason for quite a few of these to get moved. Not as many as google will sell, but they won’t have inventory piling up either.

      As to why there is no WiFi calling, its because they can’t put it on Nexus devices. Otherwise they would.

      • jury_rigger

        Nope, neither is a compelling reason. If you can’t afford a measly $350, you’re clearly living above and beyond your means, and shouldn’t have the latest and greatest smartphone.

        • fentonr

          Neither is a compelling reason to you and you might be correct, however, the Nexus 4 was $100 more at Tmo than on the play store and I sold a lot of those, many to people who knew it was cheaper on the play store so, some people would disagree with you.

        • jury_rigger

          Only a blithering idiot would buy a Nexus from TMo, period. Good thing for TMo is those type of people aren’t in short supply.

        • fentonr

          Well, then I’m glad I no longer sell cell phones because apparently this release is different from all others and dealers are screwed, huge phone release they won’t make a dime from. I seem to have graduated school and started a career at the perfect time.

        • Dakota

          Wish there were a survey to find out how many people even know its $100 less on Google Play. You’d be surprised how many don’t. If they’re not reading tech blogs, they probably don’t even know the Nexus 5 was released. I don’t know that the average consumer cares about Stock Android and 4.4 isn’t a huge upgrade. THe big selling point is the price combined with a no contract plan. I can’t imagine buying this from GP and then paying the high ATT rate without even taking a subsidy.

        • n900mixalot

          Oh come on. We are all living beyond our means, that has little to do with the point.

        • jury_rigger

          speak for yourself, i live well within mine

        • Ford_Thundercougarfalconbird

          You must be tons of fun at parties.

          Did mommy not hug you enough?

        • jury_rigger

          and you must be one of said people who live above their means, carry a cc balance, and paying interest on everything

        • Ford_Thundercougarfalconbird

          Daddy didn’t hug you either.

        • Dakota

          While $350 may be measly to you, its not to a lot of people, especially in this economy. Even older phones often cost more than 350. Phones are becoming more of a necessity these days.

        • 21stNow

          Several things here. Even if smartphones were a necessity (I don’t think that they are), there are even cheaper smartphones to buy than the Nexus 5. They may not be new, but they can be functional.

          Second, I’m willing to bet that most of the people commenting here have a perfectly functional phone sitting beside them right now. Even if we go with your argument that a phone is a necessity, the Nexus 5 is clearly a want since the need is already fulfilled with the current phone.

      • Dakota

        TMobile has customer support? Thats a joke. Even when a carrier offers support, its usually for its network. Nexus support is provided by Google and or LG.

    • Alex Zapata

      If you can convince Google to put WiFi calling support on the N5 make sure to let us know.

      • Dakota

        Its not his job to do that; its Tmobile. Wifi calling appears to be a feature that is important to many Tmobile users (granted because their network is poor and people can’t even make calls )…Tmobile was the only major carrier to actually stock the Nexus 4. This time around, they’re the only one to carry the 5. While it works with ATT< they will not carry it. Imagine if Tmobile decided not to carry the Nexus 5; that would have left the device on Sprint alone. They could've done a bit of negotiating.

        • Alex Zapata

          I think you missed the point of my post…. Google wants to keep the Nexus line as pure and unadulterated as possible. I for one would love to see the Nexus 5 support WiFi calling, but Google has no real reason to support it without seeming like they’re playing favorites.

    • Sean

      Didn’t happen with the last Nexus so you are dead wrong. I work for T-Mobile and when the Nexus 4 was selling in the play store for $350 we were selling them for $500. Customers didn’t bat an eyelash. Even when informed it was cheaper they still bought it from us. So you don’t know what you are talking about. It will sell just fine. Even when it was end of life and we were selling it for a $100 more (roughly) it still flew out of stores. Secondly there is a false assumption that Google sells the Nexus at cost. They subsidize it and always have.

      • jury_rigger

        I also said there are no shortage of dumb people to buy it from TMo.

  • n900mixalot

    So then where is T-Mobile’s profit? The contract sure, but I doubt they buy them from LG for the same amount customers pay. That would be ridiculous.

    • fentonr

      T-Mobile doesn’t really make anything from phones. There is usually a 1-3% markup on phones to round them to an even sale price. For example, if they pay $431.29 for the device, they will probably sell it for $449.99.
      In practice, they make nothing though once shipment and handling costs are factored in. Usually phones were overnighted or sent via two day shipping to stores…which pretty much eats up the profit. Tmo doesn’t sell phones to make money from them, they sell phones so that people can access their network and pay them for that.

      • n900mixalot

        Sure it does and you are right but we dont know what LG is charging Google vs what they are charging carriers, vs what they are charging third party resellers. And yes, carriers make money off of contracts and not necessarily devices but I still find it hard to believe that T-Mobile is okay with breaking even on anything they sell, particularly with devices where the opportunity cost really isn’t low enough to justify breaking even on device sales.

        • fentonr

          I agree it seems like something a cell carrier wouldn’t do, they jump at the chance to make any cent they can, I was surprised when I saw it too. All I can say is that I’ve seen the pricing for phones (admittedly, in the Nexus 4 time frame, not specifically for the Nexus 5)and at the time, not one smartphone in the lineup had a markup of more than 5%.

  • Whiskers

    “That’s what Tmo pays LG for each unit. If LG charges T-Mobile $449, it makes little business sense for the network operator to offer a $100 discount to price match. Unless its plan is to lose a lot of money.”
    If that’s the case , then why is T-Mobile getting bent over and being charged more for the device that other companies ?
    There’s no way the other stores are taking a loss either just to make a sale.

    • fentonr

      Google has sold Nexus devices in the past at a loss, its actually not an uncommon practice. Also, Tmo could be paying more because they’re purchasing a smaller quantity,Google buys a ton of them and could be getting a bulk discount. Its also possible that Google specified the price they would pay and LG had to agree to it to win the contract to build the phone.
      I don’t know which or if all are the case, but those are a few possibilities.

      • Whiskers

        Good points.

      • Eddjz

        Only thing I can argue here is that even if Google takes a loss on the device they do make up with the play store and ads thru there services.something tmobile doesn’t get…. Personally that makes a huge difference

      • PhoenixPath

        “Google has sold Nexus devices in the past at a loss”

        Do you have a reliable source for this, or is it just something you’ve heard so many times now you’ve accepted it as fact?

  • steveb944

    I think it’s pretty obvious T-Mobile cannot price match the Play Store. Be it due to paying overhead, a different MSRP, or not subsidizing. Does Sprint offer a kind of better price? Yes kinda, but overall Play Store is best if you have the money.

    If I didn’t have the $432.93 (tax and ship) I paid for my 32gb I would have gone to T-Mobile and happily handed $42 and walked out with a new phone. Choices people, be happy we as T-Mobile customers have them.

    Edit: Is anyone else selling the T-Mobile N5? I only read the Sprint contract version being offered at Best Buy, Radio Shack, and Amazon.

    • Whiskers

      Plus tax

    • rsg

      If you can’t put about ~$400 on a credit card and pay the interest on it for this phone, then there is NO reason to be buying it until you save up or pay off that amount on your credit card. It is STILL cheaper to put this on a credit card than to buy it from TMO.

      • 21stNow

        It depends on your credit card. If you have a card with a 24% interest rate, then over 20 months you will pay $560 if the phone is $400.

        Now, many people don’t have such ridiculously high interest rates. But for those that do, the better option would be to just buy the Nexus 5 from the Play Store.

    • Dakota

      IT’s too bad that in my state, the laws changed and Amazon now charges sales tax. Seems this is a growing trend all over. It really has made me order from Amazon a lot less. Prices aren’t cheaper anymore and its a lot easier to return something to a retailer that also has a brick and mortar site. But as long as its available at some retail store, I can get my hands on it since I wouldn’t buy any device blindly.

      • steveb944

        I’ve been noticing the same on a few purchases on Amazon. It’s not all of them tho, strange. It’s too bad I just renewed my Prime.

  • rsg

    It is more than $100 as you will pay sales tax for the increased cost by $5-$9. At $450+tax, this works out to nearly a 30% interest rate. More than many, not all, credit cards. I think you would be better off getting this directly from Google Play and it appears that supply isn’t as constrained.

    My guess is come next spring when a bunch of new phones are announced, TMO will offer the Nexus 5 with wireless charger or drop the price. The Nexus 5 battery is a big disappointment and will subsequently be readily available.

    • fentonr

      It really depends if they want to take a loss on the device or if LG drops the price. I think both are very likely.

    • Ford_Thundercougarfalconbird

      In most States, you are paying sales tax through the Play store, too.

      You also have no idea how interest works.

      • rsg

        I am talking about paying additional tax on the $100. You pay taxes at TMO and Google Play. The additional $100 + additional tax is 30% more than the Google Play store.

        I do have a very good idea of how interest works. It seems you that if you can’t figure out this is a bad deal, then this deal from TMO is for people like you.

        • You’re not thinking this through. Even though we’re ta lking small $ amounts there is huge value to paying for things over time instea of up front, even with the extra cost. $100 over 20 months is $5 a month. Smart money pays that and keeps the remaining $300 to use on other things rather than spending it all at once.

        • rsg

          It’s a good thing many high schools in the US require personal financial literacy.

          We’re taking about a $350 phone not a $20K car. Putting it on a credit card and paying it off in 12-18 months is a much better option. If you can’t manage that, then it is foolish to get this or any smartphone until you save up or get your finances are in order to cough up $350.

        • 21stNow

          With these dollar amounts, I disagree that “smart” money would pay $100 more for the Nexus 5 just to have money to spend on other things. I could see it if you said invest it, but $300 in a savings account for 20 months will get you 25 cents over 20 months in the best savings accounts at banks right now.

          Even if you put that in the stock market, with the market being high right now, I would bet that you would lose money over 20 months rather than gain. I can’t come up with an example where spending the extra $100 to finance the Nexus 5 through T-Mobile makes sense.

  • besweeet

    The $100 increase shouldn’t come as a surprise so long as one stops for a minute to think about things.

  • Tim

    Someone has to pay for T-mobile CEO’s big plans. T-mobile employees have been paying big time with all the cuts to benefits.

    • Dakota

      not to mention all those bright pink shirts he has to wear on tv

    • Glad I Left CA

      How’s that stock grant working out for you?

  • n900mixalot

    Like I posted below, Google stated openly the they break even when they charge the amount they do for Nexus devices, so that means anything above that is profit for anyone else who buys them from LG. So the subsidy that Google is offering is most likely based on the profit they would have received had they charged a larger amount. So while T-Mobile may have to pay for shipping and handling and other administrative costs to be able to carry the Nexus 5, they’re still making a profit somewhere, even though it may not be as much as they would with other devices.

    • philyew

      Except that LG have a history of charging other distributors more than they charge Google.

      • Dakota

        You’d think TMobile would be able to arrange a deal with Google if the latter wants the N5 in the hands of more people. ATT isn’t even carrying it in stores and Verizon isn’t working with Nexus period.

    • You don’t know what LG charges Google, Tmo, or if they are same thing. Obviously they are not the same as Google has get something out of letting LG build the phone in the place.

      • n900mixalot

        I know LG charges Google somewhere around $350 since, again, Google claims that they about break even. As for T-Mobile, I don’t know what they get charged. But it is certainly less than $449 but still enough for T-Mobile to make a slight profit. Even if it is only $20 or so.

  • deng

    TMO is lying. They pay only slightly more than Google. TMO sets high prices on all non contract phones, it is just more apparent now since no one is getting the contract subsidy. TMO used to price their prepaid phones fairly but they have been gouging them for the last year as well. If TMO charged customers 349 like Google and treated the extra 100 as interest, they would be guilty of usury in 46 states.

    • Adrayven

      The convince of one’s own dreamland is that annoying concept of truth doesn’t get in the way.. hows that working for yea?

    • philyew

      What basis do you have for making this claim? Other distributors in Europe refused to carry the Nexus 4 because LG charged them an uncompetitive price compared with their price to Google. There is a strong possibility the same is happening again.

      TM also has overheads to recover for the distribution and support activities.

    • Dakota

      It is true that they often priced contact phones higher than the other carriers back in the day. They also have the Nexus 4 on their prepaid site for 479 and yet the installment plan total price at 429…That doesn’t make sense either.

  • deceptivesmiles

    My only grope its that they are only selling the 16gb and not the 32gb.

  • patrick

    I doubt if T-Mobile really pays LG 449 for the devices. That is ridiculous. I wish they would show a purchase order!

    • common sense

      U live in a fantasy world. If a company makes an official statement regarding handset pricing . Then u go n with it if they were lying I’m sure someone would point it out. Quit crying and buy it from google.

      • patrick

        And where is this “official word” posted at? I don’t know if you know it but Tmonews is not that known for being 100% accurate with their information. I don’t see any post from John Ledger or T-Mobile Execs saying this. Have you heard of places like CNET or FORBES – When its posted places like that we will call it official ok big guy. And if you honestly think that a company as big as T-Mobile would not get a price break on their phones they buy in bulk and have to pay retail pricing just like customers then you my friend are living in a fantasy world. Learn about business or economics before you start trolling.

        • It came from CNET, guy. It is sourced in the article (with a link and everything) and if you didn’t believe them it would have taken you less time to look up it took you to write that rant.

        • Dakota

          Just for the record the CNET article doesnt have an official statement or anything in quotes. It just says they contacted a rep who said Tmobile pays full price from LG. We’ll have to see what other retailers price the phone at.

        • Dakota

          I noticed Legere didn’t really comment on that when people tweeted him with questions about the Nexus 5 pricing

      • Dakota

        Um, like no company has ever lied in statements.

  • Bklynman

    I know it is off topic,I would like to know is when s Lg going to bring out
    the Doubleplay 2? ;)

    • kalel33

      LOL, I remember the Doubleplay. It didn’t do too well in sales.

  • Rob

    Are they going to sell the 32gb or just the the 16gb?

    • Dakota

      Just the 16gb so you can get the 32gb on Google Play for less than Tmobile is charging for the Nexus 4 or 5. They’re still selling the 4 prepaid at 479 or 429 in installments (that price differential is weird too)…You’d think the 4 price would drop. I just always feel sorry for customers that just aren’t that educated or informed about cell phones. Believe it or not, most people don’t read blogs. I know Ive talked to people on the street that I see with Androids and most of them don’t even know what OS they’re on. I don’t see anything showing that Google is going to do a big campaign for the N5; it seems its still a phone for Android enthusiasts and developers who want stock android

  • RisingSun

    Okay, I am a current Tmo customer and this is how it works: I purchase a Iphone 5 four months ago at $199 down plus TAX upfront and sim kit (wtf?) which come out to $278 (base on full price of phone) then $20 for 24 months and $10 on the jump program. So it’s best to pay off the phone quickly and get rid of the JUMP program to truly a value on Tmo plan. So if they do this with the Nexus 5 at $450 and $42 up front, you will be coughing out minimum $100 up front and payment add to your plan for the next 24 months. $100 on top of the phone is still unjustifiable. Sure, payment plan are good for people that cannot pay all at once, so it’s basically like buying a car, you get the shaft when you leave the parking lot and another one when want to trade it in. That being said, Tmo is still have the best plan in the industry but at $350 for a Nexus 5, I rather save up and just buy it out right at google store. Oh yeah, the Iphone 5 is sh*t compare to the HTC one.

    • Whiskers

      And the HTC One is sh:t compared to the Nokia WP8 OS and camera .
      They both may have more apps then WP8 but how many flashlight apps or games do you need , most of the apps are just repeats of the better ones , and i have owned all three of them .
      The One feels great in the hand and has front facing speakers , but other than that it still lacks in the camera dept and Blink Feed sucks . Gave the wife the 5s since the micro sized screen is to small and pathetic to do any real viewing on.
      Nokia’s camera design smokes them both for breakfast and WP8 does not lag.

      • RisingSun

        I agreed, the Nokia camera is far more superior than HTC one but it still run WinMo and it’s far from perfect like Win8. If Nokia drop WinMo and switch to anything else then maybe they can actually sell phones instead of SHIP phones.

        • Whiskers

          That will never happen since Microsoft bought Nokia .
          What Microsoft should do is make an Option to use the tiles home screen or not on their next version of OS because that’s one of the main reasons why a lot of people won’t give WP a chance , they don’t like the tile hone screen setup .
          It’s not for everybody but WP8 does not lag like most Androids do and they don’t need all the extra power just to get the OS to run without problems .
          Not to mention WP is catching up with all the important apps you really need instead of thousands of useless apps clustering up you phone storage space .

        • RisingSun

          Alright, the tile home screen is basically vertical instead of horizontal setup like most phones. I have all the phones, Android, IOS, blackberry, Winmo. They all try to make it a universal platform to work with their products but most people like variety. Yes, I do see potential in WinMo but they are lacking a Niche, blackberry have email, Android have customization, IOS have games and women support, WinMo have Nokia and camera? Microsoft have their hands on every electronics catergory but they are not stellar products. Like my Nokia 1020, the camera is awesome but they phone design and material look and feel like it was made from Walmart’s supplier. Whiskers, do you own Microsoft or Nokia stocks? hehe :).

        • Whiskers

          LOL , no I don’t own any of their stock.

        • Dakota

          Bet they’re all better than the Nexus camera

    • dtam

      you can get off the jump program. when I got my sister her iphone 5, the salesperson forced the insurance plan on us. I took it off immediately once I went on my.tmobile.

      • The Man

        That’s kind of dumb seeing how JUMP is $2 cheaper each month compared to the regular high end phone insurance they have.

        • dtam

          It’s because they want you to jump. each time you jump is profit for them

  • GinaDee

    No it’s not a con, but I don’t believe making a profit is a con in general. That means the same applies to carriers like Verizon or AT&T who charge more for their service.

    Each company has the right to charge a certain amount for their services. Consumers have the right to purchase a device or service at the cost advertised.

    Making something more expensive is not a con. Companies are interested in profit and will sell a product or service for as much as they can get away with. I wouldn’t resale a phone at the same price I bought it either.

    • RisingSun

      No it’s not a con to make profit, but come on, Verizon made hundreds of millions in profit per quarter. Phones price are worst than used cars, no one to sell their stuff for less then they paid for but it’s not gold or diamond ya know? They are a big company and I am sure they have negotiating power instead of acting like mom and pop shop and add 33% to all their products.

      • GinaDee

        It’s a business model.

        Verizon for example is expensive for a consumer, but from a business perspective they offer so much more.

        Upgrades for example online always give free overnight shipping. If you ever need a free return label they’ll send you one too at no cost. Good luck trying to get free overnight shipping from T-Mobile. When I returned my Galaxy Gear watch to T-Mobile they wouldn’t even give a return label. They told me I’d have to mail it myself.

        T-Mobile on the other hand gives dirt cheap service and unlimited data. It’s a trade off.

  • vinnyjr

    It’s still a very affordable way of buying the N5, many customers could not afford to pay full price for that phone. T-Mobile has every right to make a profit, they are financing the phone over a period of time and they would be nuts to do this for nothing. I’m not buying the N5, I have already bought the Note 3, 5S and the N7 (2013). I have to take a break, I see a new phone and I just have to have it. Maybe I will buy the N5 but I will hold off for a while. I can’t say enough great things about T-Mobile, they have accomplished so much so fast. I think the the customers of T-Mobile can thank Mr John Legere, this guy has turned the company around.

    • sushimane

      Yoo patriots all day everyday

    • AussieB

      As stated above, QVC and HSN manage to split up payments without interest and theyre still pretty profitable and growing companies. Its a PR image thing more than anything else, but then again the average person probably wont be too aware of the Nexus 5 or know that its available on Google Play (Btw, why arent devices listed on the Google Play app on your phone?)

    • Morton H

      I totally agree with u completely..only diff is they aren’t making anything on the phone..it’s a good deal for a high end phone bottom line. I have the LG G2 and note 3 so I’m fine. I don’t like nexus phones..the Wi-Fi calling is a big thing for me and T-Mobile and the new CEO great job can’t say enough good

  • In Romania the Nexus 5 costs 664$ right now. And you have to pay up front. So the T-Mobile deal doesn’t seam so bad, I wish we had it here. I’d get the Nexus 5 right now.

    No to mention average wage here is less then half as it is in the U.S. :/

    • AussieB

      Dont know about Romania but my friends in other countries pay a lot less fo their cell phone rates.

      • n900mixalot

        Right. More up front, but less for service.

  • Still no wifi calling on this one? That’s probably the worst thing about my N4, I love everything else about vanilla Android though. Probably won’t be getting it unless my N4 fails for some reason.

  • Hell if it had vanilla android with wifi calling id probably pay 550.

    • Brian Richards


    • AussieB

      Ive never used wifi calling but it seems the reason Tmobile needs to offer it is because they have such poor coverage where many people cant even make a phone call. With Tmobile being loyal to the Nexus program , and being the only GSM network to carry it, youd think they could work with Google to at least have the higher cost Tmobile version have wifi calling. It does seem people who need that would be willing to pay a little more

      • Richard Finzel

        Have you ever tried to make a call in a basement with the other carriers… Signal doesn’t make it there either…. That is where I use WiFi calling myself…

        • kalel33

          I’ve lived in 4 different houses with basements, during the last 10 years, and none of them had a problem pulling signal in the basement.

        • LAGURL

          i have in my moms basement tmobile no service,att 3 bars of hspa and Lte .

      • KingCobra

        So why do other carriers offer signal boosters? I had 1-2 bars and sometimes ‘no service’ in my house when I had Verizon. Their solution: I could BUY a signal booster for $100.

    • ChristianMcC

      Like the g2x…..never again…

  • Jim Beam

    Wtf is wrong with people. If you can’t scrape up $350 then you deserve to pay more. Btw Tmobile is slipping on customer service.

    • AussieB

      Thats not a fair statement. Sadly, its how many b usinesses work but people who dont have the money shouldnt pay more…especially if its supposed to be interest fee. Insurance companies do it with premiums…Just bought new auto and home insurance and if Id pay in installments, Id pay $100 more. As for customer service, TMobile has always sucked.
      And back to the installment issue, TV shopping channels like HSN and QVC are some of the few retailers that will break up your payments WITHOUT charing you any extra or interest. Whether they call it Easy Pay or Flex Pay, you pay the same whether you pay in installments or not..and they send you the product immediately, have generous returns and dont charge restocking fees for electronics. HSN actually has sold a lot of TMobile phones lately (although granted they arent the newest devices and are geared to no contract plans). QVC will have an iPad Mini on the air all day Sunday. Now they will probably charge more than the retail price because they will add accessories, but whatever their price tag is, they will charge the same whether you want to pay it all at once or break it into monthly payments.
      The Nexus 5 is built for TMobile contract plans; I dont know why they dont team up to present an unbeatable deal…Imagine a phone for 0 down with $17 payments per month.
      Tmobile stores will be like Amazons issue. Customers will go and try it out and then order it elsewhere. What price will 3rd party retailers like BestBuy or Walmart sell it at?

      • AndroidProfit

        YOU ARE LEAVING OUT THE PARTabout how grossly overpriced those shopping channels are for you to enjoy that flex pay.

        SAME TV $200 LESS at Best Buy. SAME COMPUTER $200 less at Best Buy! BEST BUY!

        these shopping channels are counting on people like you to think they are saintly. They are absolute pros at separating stupid people from their money.

  • AussieB

    Im not buying it. I dont believe that is the price that LG sells the phone to Google. Regardless, it just makes Tmobile look bad. Theyre still selling the Nexus 4 for that

    • ShermCraig

      So, they’re lying? LOL.

    • Morton H

      I don’t think it makes anyone look bad it is what it is point blank

      • Jake Williams

        It is what it is?

    • Richard Finzel

      Business 101 sell for PROFIT… Also wouldn’t you think that a business would make up the $0 finance charge. It is just business.

  • chris L

    Somebody please answer this question! Will T-Mo have both the black AND white handsets in stores?!

  • Don Kim

    I’m not buying it one bit.
    LG is selling T-Mo Nexus at $449 is complete bull crap.

    • psychoace

      You’re not buying it because you don’t want to believe it. To bad because that’s just the way it is. If you want though you can start up some kind of conspiracy web site that ties this price hike and JFK’s assassination together.

      • AndroidProfit

        We better get Alex Jones take on all this! It’s probably the JEEEEEEEWS!!!

    • philyew

      I don’t buy it either, but I do believe TM is paying more than Google. They need to cover distribution and support costs. They probably make 10% or so profit on top.

      • n900mixalot

        Thing is, T-Mobile has to cover distribution and support costs just as much as Google has to.

        • philyew

          This, however, is where a Google decision to subsidize their costs will play into the relative pricing.

          TM also has a bricks-and-mortar sales organization to support, so their operational overheads for the comparable part of their business will be higher.

        • n900mixalot

          Or is it greater for Google since they don’t have the business to consumer and even business to business channels as well I established, like T-Mobile would as a corp that does nothing but sell phones and phone contracts?

        • philyew

          Google has a consolidated requirement for all carriers in each national market. It has an established online sales business handling multiple currencies.

          We don’t know that they handle their own logistics, maybe they rely on LG or an outsourced service. In any event, it will be more efficient than distribution to hundreds of stores, as well as through an online business.

          The capital costs associated with starting up a hardware distribution business in this model will be modest in comparison with the scale of their overall business and even less significant in relation to a single model.

  • superg05


    • Dakota

      Why are you so angry and screaming ? Buy it from

  • Thomas Hughes


    Are we forgetting JUMP!

    $10/mo means you can trade it in after 6 months if you want to save the money.

    $17/mo = $102 (6 months)
    $10/mo = $ 60 (6 months)
    $41.99 down payment.

    Total cost = $223.99

    Yes this is assuming you only keep it for 6 months, but still another way to look at it, no?

    1 year ownership would be $363.99

    Still not bad compared to $350 at Google Play.

    • Dakota

      Except you basically leased it and can’t sell it …I sold a GNex on Craigslist for $250 about six months ago

    • Eugene

      So you’re paying 223 dollars to use a phone for 6 months, when you can buy it for 349 and use it for as long as you like or even sell it.

    • 21stNow

      So if a customer only wants Nexus devices, he should pay more to keep the phone only for one year versus less to keep the phone for a lifetime, or less to keep the phone for a year and have the option to resell it? I fail to see the logic here.

    • AJ TMO

      Definitely a good way to look at it. However, you only pay 4 months of installments if you JUMP! Because the first installment comes 2 months after you purchase your device.

    • Thomas Hughes

      To every comment below. You use it for a year let’s say until next nexus comes out, you pay just a tad more, still can sell on your own or even trade it in at t-mobile at the 1 year mark, still eliminating any balance and getting a new phone.

      Jump includes lifetime warranty and insurance as well.

    • TylerCameron

      That’s $10/month PLUS the cost of the phone’s EIP monthly payment.

  • Dean Kaltsas

    they will also send you a new phone if things go wrong… at least thats how they handled the nexus 4….so it’s kind of a users insurance i guess

    • tomnewtn

      So it is new vs refurb like Google? nice. I prefer to pay less, however.

      • Dakota

        Not sure about that…USually the warranty is the manufacturer. Samsung replaced my Gnex with a new phone…I don’t know if LG works differently. $100 is a lot for many people.

        • tomnewtn

          Interesting. Well I remember when you had to luck out completing a purchase on google’s site or you were out of luck. at least now there are options for folks who couldn’t buy it from Google.

    • Dakota

      When I had a problem with my Galaxy Nexus, I got one replaced and I had gotten from the Google Play Store. Maybe LG works differently but I read it has a limited 1 year warranty and thats what Samsung offered with the GNex I believe. And I got a brand NEW phone – not a refurb

  • 4rk

    Curiously 349.99 – 41.99 = 308. While 17 x 24 = 408. And (408 / 308)^(12 / 24) = 1.1509.
    In other words, mysteriously the “uncarrier” has been “forced” into charging the current national average credit card rate of ~15.1% for loaning you a phone with monthly payments over two years vs what you could pay outright elsewhere. The only two weird things are that anyone might chose to pay the $449.99 price outright with interest baked in, and that T-Mobile is so PR sensitive that it would twist itself into arguing that it is giving people a 0% loan on purchases yet LG is making them reach a difference exactly in line with a normal consumer loan on such an item.

    • jian9007

      LG isn’t making them do anything. That’s the price they sell it to for those who are not Google. Sprint’s retail full price is also $449.99, and they don’t do the financing, so is LG forcing Sprint into something as well? It just coincidentally is $100 difference from what Google sells it for. So there is no T-Mobile PR spin as all the phones are actually financed interest free.

      The thing that I find odd is that Google allows their tablets to be sold for the same cost whether through the play store or at retail, but not the Nexus phones. They even have different manufacturers (Samsung and ASUS) so it has to be Google allowing it to some extent. I still think that T-Mobile might be getting the Nexus 5 a bit cheaper than $449.99 though, maybe for closer to $400. Since the UK retailers were saying they paid around £50 higher than the Play Store. Bottom line, if you can afford to get it straight from the Play Store, then do it.

    • Chris

      You did all that math and all you wanted to do is prove T-mobile is selling it $100 more. Look it’s this easy. T-mobile $449 – Google $349 = $100. Thank you.

      • DreRSaint

        There is some value in knowing whether financing $449 in 24 months vs $349 up front is worth it or not. It’s easy math too…Knowledge is a good thing..

        $449-$349= $100 today does not = $100 tomorrow. In addition, the convenience of not having to pay the full amount up front has a cost.

    • Dakota

      I just hope that people who walk into Tmobile stores educate themselves enough to know they can save $100 by buying it on Google Play. I havent read much complaining about Sprint and their subsidized pricing. They are selling the Nexus 5 for 149 – so thats a $300 subsidy (449-149; however if you’re a new customer who is switching to Sprint, they are offering a $100 discount which would put the phone down to $49) However an Apple iPhone 5S costs 649 and is sold for 199 – thats a subsidy of 450. I havent read anybody calling Sprint on this …but it seems they are taking a nice profit. I guess the subsidized level is different for different phones and I guess the iPhone is the most desirable phone. But if they’re giving iPhone a $450 subsidy, why isn’t the Nexus 5 free on a Sprint contract?

    • DreRSaint

      Hmm.. well I guess you could look at it like a loan…However, since you are making payments monthly (principal that is interest bearing goes down each payment), it actually comes out to about 28.57% APR (349.99 w/ down payment of $41.99, not counting taxes, amortization of $17 per month of principal+interest)**… It isn’t a bad rate considering how small the loan is, but it isn’t lower than an average credit card.

      **Calculated as follows: Payments= $308*[(0.02381)(1+.02381)^(24)] / [(1+.02381)^24-1]…..$308 is the principal, 0.02381 is the interest rate divided by 12 (since there are 12 installments per year), 24 is the total number of installments**

  • tomnewtn

    Great option to make payments with TMO if you cannot afford to buy outright from Google. If you can save or have the cash I’d buy it from Google. Lovin mine.

    • Dakota

      how are you finding the camera and the speaker volume?

      • ChristianMcC

        They’ve been great for me, especially compared to past nexuses. Camera could be quicker to focus, but that is a software matter. Volume on speakers is mono, FYI, but what’s interesting is that the earpiece I’d also used for speaker phone, so they could use that possibly for a stereo sound, though driver is probably considerably smaller…

      • tomnewtn

        So far so good. The camera seems to shoot a clear shot, but there is some lag at times when I hit the shutter button. I’m into photography so not real concerned about the camera on my smartphone. I foresee another update with some bug fixes coming. The speaker seems great. As soon as I fired it up for the first time, a system update was initiated and it didn’t seem to be a tiny one, but not sure. I know they were working on a fix for sound variations and maybe that update fixed it.

  • Sexual Harassment Panda

    If the only option for you is to buy this or any other phone on a payment plan, then you should seriously consider if you can really afford a phone.

    • AndroidProfit


    • TechHog

      This is such a stupid thing to say…

      • Sexual Harassment Panda

        Why? If the only reason you need EIP is bc you can only afford monthly payments, then you can’t afford a smartphone. No one NEEDS a $350 phone.

        • TechHog

          So, because of that, they should buy a dumbphone even if a smartphone is useful to them?

        • Sexual Harassment Panda

          correct, if you don’t have liquid cash for a $350 phone, you can’t afford it. Buy a pre-paid dumb phone.

        • TechHog

          I guess you have something of a point for this particular phone, but the part about “any other phone” is just stupid and elitist. What if it’s a college student who finds the features of a smartphone really useful, for example? You shouldn’t make dumb blanket statements just because you personally think phones should always be bought full price upfront. If there were no subsidies or payment plans, whatever phone you’re using would not exist today.

        • Sexual Harassment Panda

          well, there are those Nokia Windows 8 smartphones, and a few Android smartphones all for less than $100 each on a pre-paid. My point is, if you have to split a $350 product into a 24-month payment (and that’s how you can justify affording it), then you don’t have your personal finance priorities straight. Buy a “dumber” smartphone get on a prepaid plan, likely you might not even “refill” each month.

        • TechHog

          If you’re so against payment plans and subsidies, why are you on this site?

        • TylerCameron

          If you can’t afford $350 for a phone, you seriously need to get your priorities straight.

  • kev2684

    I find it funny that people are arguing that this company used about xx amount of money so this other non partner company should not retail this for xx amount more than the manufacturer itself. nobody is factoring out the cost of somebody importing the products to US, R&D, taxes, licenses and other customs stuff. nope. non of that. even the man-hours, storage, marketing or other retail stuff is overlooked. just the raw cost of the hardware.

  • Gmail

    Google sucks

    • Morton H

      so do u


    What a bunch of idiots you all sound like. Self absorbed fools. This generation expects everything to be given to them. No one understands economics or the cost of doing business. Everyone just assumes that every company is out to get them. Start a company, create a product that everyone wants and sell it at no profit and see how long you stay in business. Most carriers make little to no money on their handsets because they are counting on your continues monthly payments. LG is making money on the thing but not very much. And Google can easily recoup the 100 bucks on advertising and services which is why they sell them cheaper. Wake up. Learn that if you want something for free there is a catch and you will end up paying for it. You even pay for those ads you don’t click on because the advertiser includes the cost into there prices. Even FM radio isn’t free. Because of the same reason. Consumers pay for every thing a business supposedly gives away for free. Even that affordable healthcare act. Paid for by the people who do pay taxes. And their great grandchildren.

  • Dakota

    For those who still care about David’s thoughts, he wrote a post on his new site that he wouldn’t buy the phone from Tmobile. He’d save up and save the $100 to spend on apps or bills. But he also said that he is passing on the N5 because of the camera. Even if it would add a little bit more to the price, I wish Nexus phones would include better camera (and software & speakers)

    • rav

      Whats his new site ?

      • Bklynman

        9to5google. Also if you just go to last week or really from 10/28/ to last week articles you will all his contact information,from his email
        to his google+ .

    • Makoute

      That should be the thought of everyone who wants to buy the N5, just buy it from the playstore.

  • Eugene

    I’m not sure if this has been said or not, but whoever is complaining, you’re forgetting about the fact that tmo employees also get commission from selling phones.

    • Ian Harrington

      No we do not, we get commission off of features and if you put a phone on EIP. We however, do not make commission on phones. Please do not point fingers wildly

      • Eugene

        Sorry about that. I wasn’t just randomly guessing this though. I was told directly by a friend who works at tmo that he receives commission from every phone they sell. Maybe I misunderstood him. Wouldn’t putting a phone on EIP be very similar though? I feel like most people do use the EIP.

        • Ian Harrington

          It is, EIP shows the company that you are willing to stay with them for 2 years. which we get paid (a very small amount) of commission off of that. If you were to come in and buy a phone out right, most devices sold now are unlocked so it basically tells T-Mobile I can leave whenever I want. Which we make nothing off of that.

        • Chris

          Incorrect. You make commission on kits now. EIP or not. It has been like this for months now. Look at your commission reporting.

        • .you F

          No, you make $15 on upgrades and it has nothing to do with kits

        • bingo

          I’m wondering if either of you really works for the company considering you don’t know what the commission rates are…to be clear, a device on EIP is $12.50. A device bought out right is exactly $0. There are no “kits” or whatnot.

        • Jack

          Uo are half right sir. Post paid new act/upgrades are $12.50. Prepaid new devices are $5.00. However if it is an existing prepaid and they buy a handset outright there is no commission

        • Tmob veteran

          you can sell a device out right and get 10 comish if you do it through the upgrade system. Select full retail price instead of the EIP option and you will get paid out on the handset sale. rookie.

      • JayMo86

        Uh…yes we do. Plz contact ur manager for commission breakdown. It may be minor but we still get somethin.

  • i don’t think there’s anything wrong with the markup

  • mingkee

    I think T-Mobile should sell 64gb version to make it unique.

    • 21stNow

      They can’t sell what doesn’t exist.

  • Really?

    I have never know of a company selling something for the same price they pay for it… The business plan doesn’t support that. The Nexus 4 was marked up as well.

    • fsured

      The business plan supports it when the company knows their income is from the service required to run the device. Their income is from the voice and data charges. Not hardware sales.

  • zifnab

    I thought it was common knowledge that the Nexus was subsidized under the assumption you’ll buy apps and view ads.

    • PhoenixPath

      You’ve typed “common knowledge” when I am sure you meant “widely assumed”…

      AFAIK; This has never been confirmed by anyone who could actually do so.

  • Jart

    Check out first how much it cost LG to manufacture Nexus 5. It won’t even go past $280

    • .you F

      What does this have to do with T-Mobile? Call LG and complain

      • Jart

        did you see to what I am replying? People down below claim that LG sells G2 to Tmo for $450. That’s bull. To make one G2 does not cost LG more than $280. They then will sell it to Tmo for about $350 +- $50 (to make also some profit) and Tmo then sells it for $450 to make more profit. Nothing is free, and Tmo will not sweat for anything that has no potential profit.

        • philyew

          I’ve already posted proof from documents submitted by Samsung in their legal battle with Apple showing that the manufacturer was charging $430+ for a device like the Vibrant.

          What on earth makes you think that, with the general trend in MSRPs continuing upwards, LG will be wholesaling their flagship devices for a much lower price?

          I’ve also posted a link showing that LG have a history of charging other distributors more than they charge Google for a Nexus device.

          Your theory tying back wholesale prices to possible cost of parts is purely speculative, whereas there is good evidence that the amount charged by manufacturers is much higher.

          You’re also missing the fact that whatever TM charges over invoice is not pure profit. They also have to recover their distribution and support overheads from that margin.

        • The list price is irrelevant, what matters is the net cost after whatever credits, rebates, write-offs and other accounting shenanigans are taken into account.

          I’d be surprised if the net cost to TMO for a Nexus 5 was more than $275 and be amazed if it was more than $325.

          The cost of the components is relatively well known, thanks to the availability of lower-end smartphones phones from prepaid carriers, which have all the same types of components as a flagship device just at much lower spec it’s also easy to predict the cost to manufacture, certify and import a device. We know that 50% or more of the “MSRP” of a flagship device is profit, it’s just a question of who is getting what share of the profit. In the iPhone’s case I’m sure Apple gets most of it, do you really think that the carriers are going to let LG or even Samsung get away with that?

        • philyew

          Your numbers are way off.

          I’ve already posted a link in this or the other Nexus 5 thread to the revenues filed by both Samsung and Apple as evidence in their court battle last year.

          They revealed that, as long ago as 2010 and for a device as primitive as the Galaxy Vibrant, TM were paying on average $438 per unit for these smartphones.

          Back then the MSRP was $500. The margin not only covered profit, but also the operating costs for TM to acquire, market, distribute and support the device. Ignoring that reality, however, for the sake of your argument, the maximum profit for TM could not be more than 12.5% of the MSRP.

          In the first half of 2012 TM were paying $445 per unit for the GS2. It’s launch MSRP was around $530.

          In H1 2012 Apple were receiving $615 per unit for the iPhone.

          These numbers are derived from the declared revenues and sales volumes in a court case where both sides had an interest in minimizing the perception of their own income from these competing technologies. In other words, they are not artificially inflated numbers.

          On what conceivable basis can you speculate that LG are now selling a far superior device at such a low price? If they were, they would be cleaning up with the carriers and the carriers would be finding ways to maximize sales volumes because of the margins possible. It isn’t happening.

        • Like I said, in the very first paragraph in my comment, the list price doesn’t mean squat because it doesn’t consider all the accounting trickery that gets them to the net price.

          It’s in both the manufacturers and the carriers best interest to use this intentionally deceptive pricing model. it lets the manufacturers book inflated revenue numbers and lets the carriers claim that they aren’t marking up the price of phones by 80% or more.

          It’s like the deal my company has with our wireless carrier, the list prices we pay on each line and feature are ridiculous but it doesn’t really matter because we get a huge portion of that credited back every month automatically.

        • philyew

          You seem to be fixating on my reference to the MSRP, but I only mention the MSRP to set the margin between what TM ACTUALLY PAY THE MANUFACTURER and the amount they charge the customer.

          If you actually read what I wrote, you would see that I am quoting real numbers, provided by the manufacturers to a court of law, for what they are paid by the carriers. Not the MSRP, but their sales volumes and revenues. That doesn’t reflect any kind of accounting trickery.

          They have provided spreadsheets full of numbers for different models and time periods showing the number of units sold and the revenue received. The unit prices I have quoted are a function of that data.

          When two companies are mutually trying to avoid huge damages settlements in cross litigation, neither one is going to disclose inflated revenues to the judge for fear that they will be directly inflating any penalty they may have to pay, and deflating any pay-out they may receive.

        • I know you weren’t talking about MSRP and I wasn’t either, when I was talking about “list” price I’m talking about the theoretical wholesale price that the carriers pay. I maintain that the number printed on the bottom of each invoice Samsung sends TMO (what was provided in the court case you are talking about) is not the whole picture, that there are other ways for money to make it back to the carriers which dramatically lowers the net cost that carriers pay.

          The carriers & manufacturers can get away with it because these rebates or credits or whatever are not directly tied to phone sales.

        • philyew

          I’ve provided real data that can be verified. And your evidence is?

          Until you can show some proof of what you are saying, it’s all a huge conspiracy theory and nothing else.

          The damages awarded in the Samsung v. Apple lawsuit were judged to be based on the revenues deemed to have been earned improperly as a result of copyright infringement. Why would either company expose revenue levels that didn’t actually exist in that process? They would be penalized for money they never received, according to the logic of your unsubstantiated allegations.

        • I am fully aware that I can’t prove what I assert, of course the other end of that is that if what you are saying is the whole picture then smart phones and their pricing behaves completely differently than every other kind of consumer electronics in existence for no apparent reason.

          As for the damages exposure argument, I see what you are saying but if the manufacturers and carriers let the cat out of the bag as it were it would destroy their whole pricing model and would cost the carriers more money in the long run.

        • philyew

          The number of times that people reiterate the argument about the cost of components being only a fraction of the price paid by consumers, I would say that – if there is any “cat the be let out of the bag” – it is already on the run.

          Unfortunately, most people making that argument completely forget to factor in the cost of R&D, production, marketing, logistics etc for the manufacturer, which pushes up their costs in the wholesale price.

          Of course, both manufacturers and distributors are making profits, but their profit margins are seldom at the levels implied by critics, because few ever consider the operating costs throughout the supply chain.

          That’s not to say that the consumer isn’t paying too much, but the excess isn’t as bad as the critics allege.

          In the end, the consumer probably knows that they could be paying less, but if they were really that bent out of shape about it, they would simply do something else.

  • moises1204

    what i would like to know is why is t-mobile not selling the moto x? i really like to know the reason behind this!

    • Nick Gonzalez

      I believe it’s coming to T-Mo very soon bruh

    • fsured

      Motorola determines who sells their devices. T-Mobile would have no problem offering the device but they can’t offer it if the manufacture isn’t selling the device to T-Mobile to sell to customers.

  • RotaryP7

    What do you expect? If you want it at $349 then buy it from Google. If you want to pay less today then buy it from T-Mobile and pay a low down payment.

  • Rapist on BAIL

    A 5″ 1080p Full HD IPS LCD display running on a 2300 mah battery? LOL what a joke!

    I’d rather have the Moto X 4.7″ HD AMOLED running on the X8 chip that gives great battery life.

    • Ray Dull

      that motorols x8 chip is a msm8960 plus a voice processor tacked on, the cpu is the same dual core snapdragon that was in the s3, thats why it has better battery life.

  • tech916

    I call it Bull, Tmobile buys in Bulk not 1 unit at a time from LG, If LG wanted to become a player they would drop the price when sold to Tmobile. Alcatel sells their phone for how much??? Tmobile isn’t telling the truth.

  • Impatient Waiter

    so no wifi calling and overall $100 more than just buying it from the Play Store… this is going to be great having to try and sell that to my customers… if it had wifi calling, it would easily be worth the extra $100..

    • Ethrem

      Sell them on JUMP and EIP. Its a pretty easy sale if you break it down as 41.99 upfront then only 6 payments of $17 and 6 monthly payments of $10 for JUMP for a total of 203.99 before they can trade in for a new phone and they get the benefit of having T-Mobile handle warranty claims which is a huge bonus for most, not to mention having insurance as well. May be a harder sell for really savvy consumers but those ones will have already bought it from the Play Store.

      • noobystok

        So you pay $408 a year in order to swap to say the newest Nexus phone a year later for $20 more than the cost of the phone plus you have to turn it in. So you can lease a phone for a year for $408 or you can just buy it and own it for $390 and still get a new phone, all the while selling your old phone for maybe a couple hundred dollars. Sounds like a terrible deal. The Nexus 5 price point renders T-Mobiles Jump plan useless…

    • lolpoop

      People who want the phone want the phone it doesn’t matter if it costs more….especially on installment……consider it installment fees

  • noobystok

    It’s already been established that Google negotiated a lower price with LG. LG agreed to this because they can save literally millions of dollars not having to market the new device. Carriers on the other hand don’t have as much to offer LG as far as negotiating such a great price. And they will try everything in their power to make it seem like it’s not a bad deal. Like saying that it’s easier for people who don’t want to or can’t afford to drop $385 on a phone. My personal opinion is that if you can’t spend $390 on something then you shouldn’t be getting it regardless of how you finance it, let alone if it’s more expensive.

    Keep in mind though that I just changed my T-mobile plan today to a fully unlimited plan with unlimited LTE data for $120 for two lines. Which is $30 cheaper than before so technically I just don’t have to pay the phone subsidies anymore. This all happening while I’m waiting for my $450 fully priced phone to show up is just the perfect storm. I’ll be saving $150 a year even after factoring in the cost of this device.

    • Why not finance it if it is no interest? That money could be better used elsewhere if one is getting a free loan.

      • noobystok

        It’s not free. Price of the 16GB Nexus 5 through the Play Store is $400 after tax and expedited shipping. T-Mobile’s price is $450 after 24 months. So an effective interest rate of about 13%. And if you want to do the “Jump” plan to get a new phone whenever you want it’s an extra $10 a month and you have to trade your device in. The Nexus 5 pricing makes T-Mobile’s jump plan a sucker’s bet. My $450 price is reflecting the cost of the 32GB model after taxes and shipping.

        • That’s true. Forgot they were charging more. Good point

    • Redmond Jennings

      “My personal opinion is that if you can’t spend $390 on something then you shouldn’t be getting it regardless of how you finance it, let alone if it’s more expensive.”

      Glad you’ve got an opinion to fit all people. So someone who doesn’t have $390 upfront but can easily manage $17/mo just shouldn’t have a smartphone, even if job or school essentially require it? Or should she save up that $17/mo until she can buy it all at once, two years later? Is your personal opinion also against leasing cars and mortgages on houses?

      • noobystok

        Your point ignores the fact that you can buy a smart phone on Craigslist for less than $50. And spending $500 vs spending 20 times that for a car or 400 times that for a home is also missing the point. My original opinion is directed exactly at the example you gave. It IS an opinion fit for all people. If you can’t afford the newest, greatest thing, go to school and get a better job, don’t finance yourself into poverty. And your opinion that everyone should be able to finance things like a phone a car and a house seems pretty short sighted after the 2008 real estate bubble burst. What should all those people have done? Rent???….yes. I know it’s not exactly the point, but you mentioned it…

  • T S

    this would be for impatient people or anyone who can’t afford it up front. If customers dont’ like the price, order it from the Google Play store and wait it out. It’ll still be the same phone when it gets to you.

  • Steven R

    Here is the simple truth coming from not only a master’s in business worth of schooling but also a T-Mobile employee. People fail to realize that there is cost involved coming from three things, #1 shipping (T-Mobile agrees to terms on a set per device price from Google/LG for the nexus 5 for x amount of units @ 350 – the price they agree upon requires the shipment to be SHIPPED just like each nexus from google carried $10 minimum shipping paid by the customer…in this case T-Mobile adds that cost to the 350 price tag. Now it just jumped to 360-370. #2 customs (for anyone who knows anything about customs and international trade there is a cost to ship large quantities of anything from overseas meaning a single consumer buys a nexus 5 direct from google it does not incur additional cost through customs whereas an order of say 700k will pay a fee to clear customs. Tack that onto overall cost. Then, lets add in how (to put it nicely, most users buying devices in the US, SHOULDNT BE BUYING SMARTPHONES because they have no idea to use them) decide to come into the T-Mobile store to get contact transfers, tech help, and an hour tutorial and/or call customer service and bitch that their old sim card doesnt fit or ask how to put the sim card in because the phone doesnt come apart. T-Mobile also has to pay people to deal with that asinine service we provide. BOOM you have a $450 dollar phone that only retails for $350. Be thankful that there are outlets that give you the option to buy direct and quit complaining unless you do research instead of just asking why.

    • lolpoop

      I’m not aware that T-Mobile employees would talk like that about their service or their customers….. Please keep your ATT wannabe bs to your self…..you jelly tard.

  • Richard Yarrell

    Plain and simple nothing beats Tmobile or it’s jump program period.

  • dcon9999

    I went google play the day it was available — been loving it for almost 3 weeks now…Keep in mind, google does charge about $10 for shipping & handling, but its still cheaper than tmo. I bought from google right away because I didnt want any tmobile bloatware — glad to head all Nexus phones will be free of that… But instead of being able to trade in my old phones for credit to tmobile — i had to sell on craigslist…My local tmobile store gladly swapped my old standard sim card to the mini sim card at no charge…all in all — google play is the way to go.

  • dontsh00tmesanta

    If only it was the 32gb version Id jump at it like I did for sprint 32gb gnex….didnt know it would last only 2hrs lol

    Noticed the nexus 4 is still for sale

  • Scott

    Way to regurgitate another article nearly word for word. I bet that took a lot of journalistic prowess.