The recently announced Nexus One smartphone from Google has gained much traction among consumer market and if you wonder how much would it cost for HTC to build the powerful Android 2.1 based mobile device, the BOM (Bill of Material) cost analysis report from iSuppli has an answer for you. According to iSuppli preliminary BOM cost report, it is estimated that the smartphone’ raw parts would cost around $174, which is slightly cheaper as compared to $179 estimated for 16GB 3GS iPhone.



Despite the use of faster speed QualComm’s Snapdragon processor, more advanced AMOLED touch screen LCD module and other cutting edge technologies, the cheaper BOM cost is partly due to removable memory card storage as a replacement for internal NAND flash being used by Nexus One as compared to 3GS iPhone. The report further revealed that Snapdragon processor is the most expensive part, costing around $30.50 and QualComm has managed to occupy 20.4 percent out of total BOM cost together with its power management and RF transceiver chips. Besides, a 3.7-inch AMOLED display from Samsung is estimated to cost $23.70 which is considered a newer generation as compared to conventional LCD being used by iPhone. Others include the Synaptics capacitive touch screen module that takes around $17.50, or around 10 percent of total cost and one most notable saving that worth to be mentioned here is the internal NAND flash that being substituted by a 4GB removable microSDHC card has able to bring down the BOM cost even further, making it a great advantage for a new entrance to compete against Apple’s iPhone in terms of cost as well as customizable and expandable external storage capability up to 32GB via microSDHC slot.

Anyway, the estimation cost only covers hardware components’ costs but not taking manufacturing, accessories, software, royalties and other marketing expenses into consideration. Nexus One is retailed $529 (unsubsidized) or at $179 with two-year contract with T-Mobile.

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