Google is Working on a $100 Nexus Handset

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By Pavithra Rathinavel | April 22, 2014 3:17 PM EST

After seeing success in the Moto series, Google is deliberating on a low-budget smartphone which would be priced at sub-$100. According to website MTKSJ, this smartphone will be part of the Nexus series. With rumors already doing rounds about the new Nexus 6, this new low-budget phone might be an addition to the Nexus 6 smartphone. Notably, the Nexus 6 is expected to be launched later this year.

MediaTek Inc., a semiconductor company is reportedly working with Google on their mission to build low-budget Nexus device that could be priced at lesser than $100. If this deal works out, the smartphone will be in direct competition with former Google Company Motorola and its popular and still in demand smartphone Moto G. It is worth noting that, the Nexus series of smartphones are already famous for its low-priced devices with high-end features. This new $100 Nexus device would unquestionably improve Google's market share in the mobile devices arena.

Why Google's $100 Phone is a Good Idea?

There are a couple reasons why a $100 phone from Google is a good idea. According to Business Insider, reports from the business side of Apple demonstrate that the market share of Apple's iPhone is reducing significantly. Apple sells the iPhone at around a whopping $700. However, nearly all the growth in large-screen smartphone sales has been under the price range of $300 or lesser. 

Apple is also aware of the fact that their own loyal customers time and again complain about the price and the small display size when compared to what other manufacturers had to offer. On that note, if Google introduces large-screen, high performance Android device at the $100 mark it has a great potential to catapult the Samsung and the Apple market share.

The other significant reason is the hoopla around the unbelievably low-priced $35 Chinese Android phone business at Mobile World Congress in March. But presently, no one is sure, if these cheaper and more affordable handsets can create a ripple effect in the U.S. and European markets or not. It is just a logical reasoning as to, if a reasonably good Android phone can be priced at around $35 - why would anyone shell out $700 for an iPhone or $660 for a Galaxy S5?

If rumors were true, Apple iPhone 6 is expected to fall under the cost bracket of $800, which is a $100 hike from the iPhone 5S. This could be a suicidal move by Apple, but we may not know until we see the phone in the market. With the price reaching the highest-end with every new flagship phones, a $100 high-performance Android device from Google would be a welcome change in the U.S. market.

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